Reviewing your insurance needs

 

By Michelle Bester CFP®

 

Spring is finally here and Spring cleaning your finances is a great way to refresh your financial health and set yourself up for success. It is therefore a good time to review your insurance needs and cover. Reviewing your insurance needs is a crucial step to ensure you have the right coverage to address your risks.

 

It’s generally recommended to review your insurance policies annually. There are certain situations where you might want to review them more frequently:

1. Major Life Events: Events such as getting married, having a child, buying a home, or starting a new job can significantly impact your insurance needs.

2. Significant Purchases or Changes: Acquiring new assets like a car or making major home renovations should prompt a review to ensure these are adequately covered.

3. Policy Renewal: Reviewing your policies before they renew can help you make any necessary adjustments and potentially find better rates or coverage options.

4. Changes in Financial Situation: If your income or financial situation changes, it might be a good time to reassess your coverage to ensure it aligns with your current needs.

5. Health Changes: Any significant changes in your health or the health of your dependents should prompt a review of your health and life insurance policies.

6. Market Changes: Changes in the insurance market, such as new products or changes in premiums, can also be a good reason to review your policies.

When reviewing your insurance needs, it’s important to consider a variety of policies to ensure comprehensive coverage. Here are some types of insurance you might want to review:

1. Medical Aid/Health Insurance: Ensure your Medical Aid option covers your current medical needs, including any new treatments or medications. Check for changes in premiums, deductibles, and network providers.

2. Life Insurance: Review your cover amounts to ensure it meets your family’s financial needs in the event of your passing. Consider any changes in your financial situation or dependents.

3. Home Insurance: Verify that your policy covers the current value of your home and belongings. If you’ve made renovations or acquired valuable items, you might need to adjust your coverage.

4. Car Insurance: Ensure your policy provides adequate coverage for your vehicle and driving habits.

5. Disability Insurance: Check that your policies provide sufficient income replacement if you’re unable to work due to illness or injury. This is especially important if your income has increased.

6. Liability Insurance: Review your liability coverage to protect against potential lawsuits.

7. Business Insurance: If you own a business, review your commercial insurance policies, including Contingent liability, Key Person, Buy and Sell, Property, and Workers’ compensation insurance. Ensure they reflect any changes in your business operations.

8. Travel Insurance: If you travel frequently, review your travel insurance to ensure it covers medical emergencies, trip cancellations, and lost luggage.

Conducting an insurance review on your own can indeed be challenging. We recommend partnering with a Certified Financial Planner (CFP) to assist with the process.

 

Read more about Ascor® Financial Planning Services

 

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