Wednesday, November 17, 2010

Insurance Reviews

The personal insurance contracts you own may need to be updated frequently. The life, health, disability, auto and homeowner's insurance that you have may no longer meet your needs. Each contract should be looked at and adjusted as necessary.

Your family's need for life insurance may have changed since you reviewed it. You may have too much coverage. You may have too little coverage. You may have the wrong type of coverage.

If you are earning more you may need to adjust the dollar amount of the life insurance you own. One of the more important purposes of life insurance is to replace lost income. Having too little life insurance can mean that your family has too little income.

If you have more obligations now than when you bought your plan you may want to update your contract. A new baby can increase your requirements for insurance. The reverse is also true. If your children are fully grown and self sufficient, you may need less insurance coverage than you did previously.

Have you recently reviewed your health insurance plan? Your medical insurance contract may have a maternity rider that you no longer require. Or, it may not have coverage for pregnancy and you are planning to have more children.

Your insurance policy's deductible may be too low or too high. You can easily pay too much by buying a policy with a deductible that is too low.

The limits on your contract may be lower than you need. The cost of a hospital stay goes up each year. Medical providers charge more each year. Unless your policy has no lifetime maximum on benefits it may fall short if you have a major health problem.

Disability insurance gives you an income when you are unable to work due to a sickness or accident. If your income has risen, your disability insurance should also rise.

If your need for income is now lower, you may want to reduce your insurance for disability. If you are able to live off of your investments now you may no longer need this coverage.

Your auto insurance policy has probably been adjusted when you bought and sold cars. It may not have been updated to make sure that you have adequate liability limits. It may not have been updated as your automobiles have grown older and perhaps no longer need collision and comprehensive coverage.

Your homeowner's insurance needs adjustment on a regular basis. The amount of coverage you have on your dwelling needs to equal the cost of rebuilding your home. (Not the cost of buying a similar dwelling.) This amount changes from year to year and your policy should be adjusted.

If you have bought jewelry since you bought your homeowners' contract, you may want to make sure that you have enough coverage. You may need to purchase a rider or a separate policy to cover your jewelry. The standard homeowner's insurance policy will only cover a small amount of jewelry.

Price shopping to get the best rate is an important part of reviewing your insurance. Your needs change as time passes. So do the prices of the various insurance carriers. Although it is more important to be sure that you have the right type and amount of insurance, it is also important that you not pay too much for it.

The best way to make sure that your insurance policies are still adequate for your needs is to review your needs and your insurance policies one by one. Having too much coverage means your coverage is more expensive than it should be. Having too little coverage means that you your insurance can fail to pay you what all that you need.

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