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Why Is It Important to Review Your Insurance Annually?

Posted on June 3, 2025 by admin

Why You Should Review Your Insurance Annually
Insurance isn’t a “set it and forget it” product—your life changes, and so do your coverage needs. Here’s why an annual insurance review is essential:

1. Life Changes Affect Your Coverage Needs
Got married, divorced, or had a child? Your beneficiaries and coverage amounts may need updates.

Bought a new home, car, or expensive items? You may need more property or liability coverage.

Changed jobs or income level? Your life/disability insurance should reflect your current financial situation.

2. Avoid Being Over- or Under-Insured
Overpaying? You might have unnecessary coverage (e.g., an old car that no longer needs full collision).

Underinsured? Inflation or home renovations could mean your policy doesn’t cover replacement costs.

3. Take Advantage of New Discounts & Savings
Insurance companies frequently update discounts (safe driver, bundling, smart home devices).

Your risk profile may improve (better credit score, no recent claims), lowering premiums.

4. Policy Updates & Legal Changes
Insurance laws and regulations change (e.g., new state requirements for auto insurance).

Insurers adjust terms—make sure you’re not missing out on better features.

5. Claims Readiness
Ensure your documentation (home inventory, medical records) is up to date for faster claims processing.

Verify that key people (beneficiaries, emergency contacts) are correctly listed.

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