When did you first purchase your life, disability, and/or long-term care coverages? Often, people buy their policies, then stow them away and not look at them until they need them (which is often too late). Life situations may have changed (and frequently do) since you originally purchased.
Now is the ideal time to review your insurance policies: Make sure you understand what type and extent of coverage you have and decide whether you need to make updates based on changes in your personal situation. I am currently reviewing plans with my clients to ensure they are getting the optimal coverage for their current needs.I welcome the opportunity to review your coverage as well as some overall life-stage planning.
While your life stage definitely has a bearing on the type and extent of insurance coverage you have, here are some other questions to ask:
- Do I have more or fewer dependents who would be financially affected by my inability to work or by my death?
- Do I need to update the beneficiaries on my policies?
- Do I need to increase my coverage amount to ensure my family’s current style of living is protected?
- If I am a small business owner, do I have the following in place: life and disability insurance policies, a buy-sell agreement and key person insurance?
As a general rule of thumb, you should review any insurance policies you currently have on an annual basis. Whether you’re an individual or a small business, this needs to be a regular financial practice for all insurance needs. After all, you don’t ever want to come up underinsured…