Did you know that you need to have your insurance policies reviewed from time to time?
Yes! It is important to review it to ensure it is always in your best interest. When you first bought it, it was designated to suit your financial situation at that time. How about now? Your life may have experienced changes, hence you need to review if the then-policy still suits your situation today.
Life changes that impact your insurance policies
Marriage or divorce
Major life events like marriage and divorce will change your priorities. Our needs and interests hit differently when we have a spouse, or children. You might want to extend the coverage to your spouse or even add your children as a beneficiary to your existing plan. Or perhaps you want to consider taking a joint plan with shared medical benefits for you and your spouse.
It goes the same in the event of a divorce. You would have to adjust and trim the coverage or remove your beneficiaries.
Note: Your beneficiaries are the people or entities you’ve selected to receive your life insurance benefit.
Inappropriate coverage
An annual evaluation of your policies can keep you updated with your current policies. Perhaps you may have additional commitments that just came in and you would want to slot in with supplemental coverage. What may seem appropriate for your needs last year may no longer suffice this year.
The majority of Malaysians have an inadequate amount of coverage. Among the factors cited in the report were budget and lack of information on the importance of adequate compensation.
When your career changes
Career changes can include a promotion, loss of income, a new job, pay cuts, etc. Yes, your career change can directly affect your financial status and all of it calls for financial decisions to be made.
With an increase in salary, you may want to consider expanding your coverage and opt for a better policy plan to match your growing lifestyle!
You bought a house!
This is one of the major purchases you will ever make in your lifetime. If you just bought a house, then it is definitely worth reviewing your insurance with your agent. With a new mortgage in place, you’ll probably want your family to stay in the house when you’re gone. Ensure that your policy provides the amount and length of coverage that is required for your dependents.
Review your insurance policies from time to time
As time passes by, life changes. So does your insurance policy!
It is recommended to schedule an annual review of your insurance policies with your insurance agent, just to keep you updated so you can plan thoroughly just to ensure that your coverage is sufficient for you and your dependents (if you have any).
