What changes might I need to make to my insurance policy?

By Steven Merkel AAA
A:

The number one thing to remember about insurance is that, just like everything else, it changes over time. The top-of-the-line policy that you bought five years ago might not even be available or even used anymore. So, it's extremely important to review all of your insurance policies at least once every two years. Here's some of the important items that you should be checking on your insurance documents:

a) Coverage Limits - have your needs changed since the last renewal?
b) Coverage Minimums (by law) - do you have adequate coverage, as required by your state of residence?
c) Deductibles - are you able to pay the deductible listed on your policy if needed?
d) Premiums - is your premium payment still competitive with the current insurance poroducts?
e) Premium Discounts Available - have you asked for premium discounts for multiple policies with the same agent or insurer? (Read Bundle Your Insurance for Big Savings to see how to get the most out of your insurance discounts.)
f) Beneficiaries - when is the last time you reviewed your beneficiaries or checked that all members of your family were covered under the policy? (Read Update You Beneficiaries for more.)
g) Master List - what happens in the event of your death? How easy is it for your spouse or estate administrator to find all of your insurance documents; why not make a master list?

The question was answered by Steven Merkel.

RELATED FAQS

  1. Who are the best-rated life insurance companies in the US?

    Learn about what makes an insurance company the best. Read about the best life insurance companies in the U.S. in 2014, following ...
  2. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ...
  3. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ...
  4. What are the tax implications of a life insurance policy loan?

    Learn the instances in which you are required to pay taxes on a life insurance policy loan, so you can avoid making a costly ...
RELATED TERMS
  1. Investment Income Ratio

    The ratio of an insurance company’s net investment income to ...
  2. Insurance Premium

    The amount of money that an individual or business must pay for ...
  3. Independent Agent

    An insurance agent that sells insurance policies provided by ...
  4. Long-Tail Liability

    Liabilities for claims that have long settlement periods.
  5. Commercial General Liability (CGL)

    A type of insurance policy that provides coverage to a business ...
  6. Claims-Made Policy

    An insurance policy that provides coverage when a claim is made ...

You May Also Like

Related Articles
  1. Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio?
    Trading Strategies

    How Good An Investment Is Life Insurance?

  2. Here's how to incorporate life insurance into a plan to ensure that you and your family have the smoothest possible transition into retirement.
    Retirement

    The Smart Way To Use Life Insurance ...

  3. Term or whole life insurance is usually a better deal than burial policies. Here's why.
    Insurance

    Is Burial Insurance A Ripoff?

  4. Investing

    7 Factors That Affect Your Life Insurance ...

  5. Insurance

    For Life Insurers, Making Money Is A ...

Trading Center