The importance of having insurance cover cannot be overemphasized. Life happens to us sometimes, and all we have to fall back on are the plans and investments we’ve put in place for such situations.
However, keeping track of our insurance policies is equally as important as having one. A yearly insurance plan is advisable because it allows you to make changes before renewing your insurance plan every year.
Taking time out to review your insurance policy every year before renewal has so many benefits. Some of them include:
Handle life changes.
We might make plans for our year, but we cannot predict how the year goes. Certain changes in our lives can affect the cost of our insurance, limitations, and coverage of our insurance plan.
Some of these changes include getting married, sending your kids off to college, starting a business, getting married or getting a divorce, and many other things.
These changes might impact what you need your insurance policy to cover, which will affect your annual premiums.
Reviewing your insurance policy every year will help you make the necessary changes to accommodate any new circumstances.
To ensure you have the right insurance plan.
As you encounter changes in life, your needs will change, and you might need a different insurance plan than you did last year.
Your priorities might change, and you need to update your insurance coverage or make complete changes to the plan.
Reviewing your insurance policy annually will give you the chance to update your insurance plan, reorganize your priorities or change your insurance policy.
Sale or acquisition of assets.
You might have insurance coverage for an important possession like a car or purchased a new vehicle. Whatever the case may be, it’s only wise that you make necessary changes to your insurance policy to accommodate these changes.
It is also important to note that the more assets you own affect your net worth, and high net worth makes you a high liability target. It is advisable to get an insurance policy for liability protection.
An annual review of your insurance policy gives room for all necessary changes and upgrades that need to be made.
Refurbishing your home
Buying new furniture or renovating your home can affect the total value of your home, affecting the cost of repairs if there is an accident.
This would lead to a corresponding change to the cost of your insurance policy. Getting an adequate insurance policy to protect your home and your investments is key to preventing losses.
Reviewing your insurance policy annually allows you to consider and make the necessary upgrades to your insurance plan.
Cash in on discounts and promotions
Insurance companies might offer discounts and promotions for so many reasons, maybe because you purchased a new car with more safety features, the wiring system in your home, and many other changes with less risk.
You could also enjoy group discounts and affinity depending on the type of insurance policy you pay for.
You should review your insurance policy annually to take advantage of whatever promotions and discounts are available because they can save you a lot of money.
If you’re yet to get an insurance plan or want to make changes to your existing plans, the experts at T4 Insurance Solutions can help out. Schedule a consultation and let’s discuss how best to protect you!