Are you one of those “resolutionaries” who sets ambitious new year’s goals but has already forgotten them by the end of February? No judgment here—you still have time to accomplish your goals. Here’s an important goal that you can easily complete: This weekend, pull out your insurance policy and take care of yourself and your family by making sure you have adequate and proper coverage.
Haven’t done an insurance policy review in years? You’re my favorite client. You give me the opportunity to use my experience to give you the best recommendations for saving money and to accommodate your life changes. Here are my suggestions for what you should check at the beginning of each year to make sure your policy fits both your budget and your family.
Make sure your insurance policy has what you need
Have you taken inventory of your life? Do you have enough life and/or disability insurance to replace your earning capacity and keep your family safe and secure if need be? Review your financial plan with your advisor to make sure your family is sufficiently protected in the event of death or disability. Don’t procrastinate—there may be low cost ways to make sure your policy can grow with your family’s needs.
Find discounts without changing carriers
Sometimes your insurance policy review can be as simple as taking advantage of changes that were made to another policy or program from the same carrier you are already using. In this competitive market, insurance companies are trying to figure out how to gain market share or how to increase production. They will look at demographics and accident trends to see how they might change their policies to better serve the market.
Even if you have accidents or tickets on your record, you might get the benefit of a reduced premium on an existing policy if the actuaries change the plan in your favor. Check in with your insurance agent every so often to find out if your insurance policy has changed.
Shop around, then consolidate
Some people still think they can save a few bucks by shopping around for a different insurance policy. That’s usually not the case, and they will probably be wasting money by not instead consolidating all of their insurance policies of all types with a single company.
Don’t take my word for it; get a couple of quotes. You’re not married to any broker or agent who gives you a quote. You might even find an agent who tells you up front to stay where you are because he or she can’t help you save money. By the way, you should thank that person for being so honest.
Don’t give up on your new year’s resolutions just yet. Keep showing up at the gym to shed those extra pounds, and get your insurance portfolio review out of the way. Make an appointment to check that you’re on track with your portfolio, and then you can relax—until next year.