Annual reviews of NJ insurance policies are important. A simple review of a policy can alert the policyholder of issues such as over-coverage or under-coverage. Having too much coverage can result in the policyholder paying more money than is necessary and having too little coverage can result in excessive out-of-pocket expenses if something happens that the insurance doesn’t cover. Since reviews should be done annually, the beginning of a new calendar year is a good marking point since it is easy to remember. Following are types of insurance policies that should be reviewed every year.
1. Life insurance
It is always a good idea to have life insurance policies reviewed annually. Reviewing life insurance policies annually is wise because so many factors can change that will render insurance inadequate. For example, a change in marital status either from single to married or from married to divorced can affect life insurance coverage. Another factor that can have a bearing on life insurance premiums is the birth of a child. A change in career or even income can also affect life insurance policies. Since all of these factors can happen at any time and some are unplanned, reviewing life insurance annually is always a wise move.
2. Homeowner’s insurance
The beginning of the year is also a good time to review homeowner’s insurance policies. It is important to keep up-to-date on homeowner’s policies because failing to do so can easily lead to gaps in coverage, which can ultimately become problematic if a claim needs to be made. One reason it is important to annually review a homeowner’s policy is the value of the dwelling itself. Home values fluctuate greatly through the passing of time. Failure to reassess insurance coverage could easily lead to a home being under-insured if the value has gone up or over-insured if the home value has dropped. A review may also be necessary if a renovation or other upgrades have been done to the home and more insurance is needed. Having an annual review also gives homeowners the opportunity to add or drop personal property from the policy. For example, a homeowner might want to remove a computer that is no longer used or add a new piece of jewelry that was received as a gift. When evaluating homeowner’s insurance policies, homeowners need to make sure their policy provides enough coverage to rebuild the home if necessary. Since home values can fluctuate, it is important to reevaluate this every year.
3. Automobile insurance
Many people overlook reviewing their auto insurance. They just pay the premium when it is due and then go on with their daily lives hoping not to need to make a claim. However, automobile owners should take a look at their auto policies at least once a year. Reviewing the car insurance will allow the policyholder to update covered drivers. It also gives the policyholder the option to change the vehicles that are covered under the policy or what type of coverage each vehicle needs. Many car insurance companies offer various discounts based on different statuses such as age, annual miles driven, and the presence of safety or anti-theft devices to name a few. An annual review of an auto policy will enable the policyholder to active any discounts that are applicable. Failing to take this action can cost the policyholder a significant amount of money.
4. Health insurance
Health insurance is another necessity that people often just pay the premium on and then forget about. But, taking some time to reevaluate a health policy is something everyone should take the time to do once a year. Health insurance companies are always coming up with new products and options. Individuals who don’t review their policies will likely miss out on these features. A new plan might better fit an individual’s needs or provide a cost savings. Also, a person’s health can change unexpectedly. Wen this happens, coverage may be insufficient and a new plan could be necessary. Another reason to review a health plan is because networks often change. The time to discover a doctor is no longer in-network is not the day of the office visit.
5. Disability insurance
Disability insurance will help policyholders by paying a portion of their salary if they are injured or otherwise unable to work. Prices for this type of insurance can fluctuate, so it is a good idea to review the policy annually to see if any changes can be made to reduce its cost. Premiums for disability insurance can be lowered by extending waiting periods or shortening the duration of time benefits can be received.
Overall it is a smart idea to reevaluate insurance policies annually. Insurance is a necessary expense and taking a look at policies once a year helps people determine where they can save money on their policies.
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