Has The Time Come to Review Your Insurance Policies?

Your financial adviser or insurance agent may have been urging you to shop for more insurance or to review policies you have already bought. It may not sound cozy to you but it’s not a bad idea. You need to give a recheck to your Insurance policies every once in a while to make sure you are adequately covered and not paying for policies you no longer need them.

Since your liabilities, assets, risk, etc. change over time, and you don’t want to pay for Policies that have no importance now, reviewing your insurance needs and policies is a must. Here, I am trying to list some points why you need to review your insurance policies after a regular interval.

You might Find Better Plans

With the presence of several private/public sector insurers in the Indian insurance market, tough competition within them is increasing. To lure customers, insurers are bringing features enriched new innovative products benefiting policyholders. There is a possibility that you might find better plans at a lesser premium; that best suit your present requirements.

Besides, insurance premiums can change frequently for several reasons such as – changes in crime rate, changes in mortality rate and inflation, etc. So experts always argue to compare different policies at every renewal period or even more frequently to ensure you’re getting the best deal.

You might Catch Mistakes made in the Previous Policies

You may be sincere and probably have purchased insurance policies to protect your family’s financial freedom, health insurance for any medical emergencies, Motor insurance, and child plans to give an extra safety net to your kids. But there may be mistakes in those policies. For instance, you have a health insurance policy for your family which provides maternity benefits; but you no longer need this benefit. Shouldn’t it be discontinued? For maternity benefits alone, you may be paying a huge premium. This is a waste of money and you should immediately stop paying for this policy.

Change in Assets

Over time it’s possible that your assets change. For example, you have purchased a homeowners insurance policy years ago when you had lesser goods inside your home. Now, you may have purchased expensive articles for your home, such as – new LED TV replacing an old CRT, imported furniture, electrical appliances, etc. This is time to review your insurance policy.

It’s obvious that you’ll likely pay more premiums that can affect your pocket, but it’s necessary. What if any disaster occurs? It’d leave you in a pain. But revised insurance can save you from such trauma. You will actually be covered for what you own.

Change in Family

You may have purchased a Health insurance Policy when you were unmarried or had no child, and now if have been blessed with a baby or two, you need to upgrade your existing health insurance policy that can provide coverage to Your Entire Family. It is also the probability that you might get a better policy at a lower premium rate.

Therefore, it’s always advisable to do a thorough review of your insurance policies regularly. If you’re not doing that you might be overpaying or underinsured.

Change of Money position

We decide our future tomorrow on the basis of today, we move forward with our thoughts and plans, and many times we make such decisions that we do not have any doubt about the untoward happening but we make a mistake here. It is known that while moving forward, we are not predicting unexpected things coming.

Like in the year 2020, people had lost their jobs and after that, it was becoming difficult for the people to pay the car installment, and insurance premiums during that time the government had given relief to the people from the installment for some time. Changing in the money position, the time has to come to review your insurance policies.