Do you know exactly what is in your insurance coverage? Do you blindly pay it each month and really haven’t stopped to think what is covered and what isn’t covered? Is the only time you are concern with your coverage is the time you sign up for your insurance and then do you basically forget about it?
We must know exactly what is covered and what isn’t. We also must really understand our deductible amounts and what they mean.
Here are some vital things you should do when it comes to reviewing those insurance policies.
First, let’s look at your home insurance. Is everything covered? Did you add a room onto your house and remembered to add it to your policy? What about that new shed outside? Should you have it covered? You might want to consider it, especially if it houses some expensive tools and the like. Now, look at the coverage amount. If something happened to your home today would you be able to actually use that amount to buy or rebuild? Remember the costs of property values are always going up and down, but the costs of lumber, etc to rebuild always seem to be on the rise. You may want to raise the amount of coverage you have.
What about the contents of your home? Have you recently acquired any jewelry or valuable art that may need extra coverage? If so you may want to have your insurance agent add an extra addendum to your policy to cover these things.
It is really important that you pay attention to all your needs and requirements before you opt for any insurance policy. For instance, Blog insurance does exist and has many benefits and if you are a blogger then blog insurance is a necessity for you just like your home or health insurance.
Now let’s look at your life insurance coverage. Is it up to date? Has the coverage increased as the cost of living increased? Remember if you took out that policy a few years ago, it costs more today to live than it did then. The question you need to consider is this. If something happens to you today, could your family really make it on the amount you left them? If not, you need to increase the coverage. You should also look at your bills, loans and credit card debt. Is it higher than it was five years ago (or whenever you took out the policy)? If it is, then more of your insurance benefit will go to cover those debts and then your family will be left with a lesser amount.
Is the only life insurance you have is through your work? Many times this is not really enough coverage. Workplace insurance generally will cover what amounts to a full year’s worth of your salary. Your family may need more or you just may want to leave them more in case times become more difficult. Most people do try to have an extra life insurance policy.
When looking at life insurance policies remember term life may be the cheapest route to take. But you need to remember a few things. If you should die late in your term or better yet do not die at all, you have wasted all that money. Term life insurance is cheap because you have a set amount you pay for a number of years (thus the wording of term). After that set period of time is over if you choose to renew your policy you could be paying 7 to 10 times more than you were paying in the beginning. Your other choice is a more permanent type of health insurance. If you are healthy you can get better rates. If you aren’t as healthy as you once were, maybe you should try to find one that doesn’t require a physical before you can qualify.
Finally, what about your beneficiary or beneficiaries? Are these still the same people you want to get your life insurance if something should happen to you?
Once you get the types of insurance and the coverages you like, remember not to forget about them. Once a year or so, review them again. You could even call your agent and discuss any discounts in which you may qualify. Some insurance policies will give you discounts on your home insurance if you take out a new alarm system if you redo the electric wiring, etc. If you happen to have more than one policy through your agent, see if you qualify for a discount. Many companies offer this discount and some even give you a small discount if you agree to have the cost of your insurance premiums to come straight out of your checking or savings account. Just make sure you always have the funds cover them or then they will bill you more for overdraft charges.
Insurance is a basic need. The more we acquire, the more you may need. Be sure you know what you have when and if an emergency happens.
