With June 28th being Insurance Awareness Day, there’s no better time to discuss the importance of reviewing your insurance annually. Not only just to compare rates, but to review any changes that may have occurred over the past year that could have changed your insurance needs. Perhaps you moved and forgot to update your address, maybe you built an outdoor structure, put in a swimming pool, purchased a new toy? Or maybe you had major life changes such as a marriage, divorce, had a baby, retired? These are common events that families experience which will need to be updated accordingly on your auto or home insurance policy, and to review your life insurance needs. Lives are constantly changing so your insurance should also.
Insurance is interesting when you realize how old this form of protection really is. It has a history that dates back as far as 3000-2000 BC, even found inscribed on the Code of Hammurabi, the first written laws. We think of insurance in the modern age starting around the Great Fire of London which brought up the idea of property insurance. While it had been considered a convenience up to this point, it became clear that insurance was something that could protect a family fortune in the event of a disaster. From this point, insurance became many forms including auto insurance, life insurance any many other types. Insurance Awareness Day celebrates the history and necessity of this form of protection and encourages people to understand the important role it plays in their lives.
So how can you “celebrate” Insurance Awareness? The best way to remember this day is to have an annual review with your agent. Discuss any life changes you had over the past year, review your coverage limits and deductibles, and talk about your financial goals for you and your family.
It’s said that an average person will change their life insurance 7 times during their lifetime. This could be from a job change, but more likely because they have experienced a life change. Changes could include getting married, having a baby, buying a house, children going to college, getting a divorce, retiring, a death – and many more. Each of these points in life will affect your life insurance needs so it’s important to review and update your coverage accordingly. You may need more coverage, less coverage, a different type of coverage, or just need to make a beneficiary change. Whatever the case may be, even if no change is to be made at all, these are imperative times to review your policies.
Market values, liability exposure and finances change so why shouldn’t your policy? Typically, home insurance policies have inflation protection which will automatically increase the dwelling coverage each year. But what if you increase your property value by adding a structure, build a patio, a pool? These are things that will change the replacement cost of your home so it’s important to notify your agent of any changes you’ve made to your property. If you’ve added a pool or purchased a toy such as a boat or ATV, your liability exposure has increased so it’s important to increase your liability coverage to protect your assets and wealth.
As I leave you with these final thoughts, know that you don’t have to know exactly what type of policy you need – that is my job as a licensed agent! But it is important to have these reviews and notify your agent of any changes that affect your insurance needs.
So celebrate Insurance Awareness Day by scheduling a review with your agent, and be sure to tell a friend…you never know who and how much you could help!