Life involves many changes and each one may mean that you need to have a careful look at your insurance policies. Without the right changes, it may mean that someone or something is not adequately covered. Changes in your life may mean you need to change more than one of your insurance policies.
Getting Married
This beautiful event will mean that you need to change several insurance policies. With each type of insurance you have, it will also need to cover your spouse. You will need to make changes to your auto insurance, home insurance, and life insurance. A divorce will also mean that you need to review your insurance policies.
Your health insurance policy will need to change – unless the spouse already has one through work. In that case, one health insurance policy may be dropped if the spouse can be added to a group policy through work – which will be much less expensive than having two separate ones.
Your life insurance policy should be able to cover a minimum of one year’s worth of the expenses for you and your family. It will enable them to maintain their style of living – if the breadwinner should die. Funeral costs need to be included, as well as possible medical costs that may be involved before death. Ideally, the insurance should be able to pay off the mortgage, credit card bills, maintain the property, the cost of education for the children, and more. Aim for about 12 years’ worth of expenses.
Buying a Home
Buying a home will require that you have homeowner’s insurance. Over the years, your home may have improvements or additions, as well as accumulating more possessions. In the case of a disaster, you could lose out on the money needed to rebuild or replace your home and lost content. If you have downsized your home, you will want to lower your premiums for the smaller residence and possessions.
Having a Baby
This life event means that you need to examine your insurance policies. Before you decide to have a child or adopt one, contact your insurance agent, and be sure that you have maternity insurance. After the baby is born, add the new child to your health insurance to ensure proper medical care. You should also add the child to your life insurance policy as a beneficiary.
Bought a New Car
Auto insurance is based on the type of auto you drive. Things like miles on the car, style, and brand will affect how much you pay. Other factors include your deductible, options on the car, your age, type of coverage, and more. How many miles you drive in a year will also affect your insurance cost. Each time you get another set of wheels, be sure to talk to your auto insurance agent.
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Got a New Job
Getting a new job may mean that you should talk to your insurance agent. Auto insurance companies will often give people working in certain occupations a discount. This includes doctors, teachers, firefighters, military, law enforcement, and more. You will also need to talk to an agent about life insurance. If you make more, you likely will have more possessions – which will need more coverage. Also, certain jobs involve a higher risk – which means higher premiums.
Other Events
Other events will also mean you should make a change in your coverage. Starting a business means getting insurance for it. If you work from home, a homeowner’s policy may not cover electronics or equipment used in your business. Additional events that should lead to examining your coverage include moving, a death, turning 65, and becoming a citizen in the U.S.