Many people buy insurance and forget about it until something happens. But that approach can leave you underinsured, overpaying, unsure, or missing out on better coverage options. Life changes, and your insurance coverage should keep pace.
It’s a good idea to review your insurance coverage every couple of years, and some types at least once a year to help ensure that your family and belongings are optimally protected. You should also reassess your policies any time you experience a major life event. Whether you’re getting married, welcoming a new child, changing jobs, or buying a home, these milestones affect your coverage needs.
What is an insurance review?
An insurance review is a complete check-up of your current policies. It includes your auto, home, health, life, long-term care, disability, and umbrella insurance. The goal is to ensure your coverage still fits your life, goals, and finances. The review can help identify gaps, eliminate unnecessary expenses, and uncover ways to save.
10 life events that mean it’s time to review your insurance
Certain moments in life, called insurance-qualifying events, should trigger a fresh look at your coverage. Here are ten common reasons to schedule a review.
1. You got married
Review: Auto, Homeowner’s or Renter’s, Health, Life, Disability
Marriage combines more than just your last names. Combining auto policies may lower your premiums. Updating your homeowner’s or renter’s coverage helps protect all the belongings you’re now sharing. You may save money by switching to the same health plan, and if you haven’t yet added life insurance, this is the time to do it. It’s not just you anymore.
2. You bought a home
Review: Homeowner’s, Auto, Umbrella
Your home is a major investment. Make sure your homeowner’s insurance provides enough protection. If you bundle it with your auto insurance, you may unlock savings and simplify billing.
3. Your family is growing
Review: Health, Life, Auto, Umbrella
If you are having a baby, adopting, or getting a new dependent, update your health and life insurance. This will help reflect your growing family. If a teenager in your household starts driving, review your auto policy. Discounts may be available for good grades or multi-car coverage.
4. You got a raise
Review: Life, Disability
As your income increases, so should your life insurance coverage. A general rule is to have coverage worth 10 to 12 times your annual salary. This helps ensure financial support for your loved ones if something happens to you. Your biggest asset during your working years is the ability to earn an income. Help protect that income with disability coverage.
5. You started a new job
Review: Auto, Life, Disability
New employment can mean different income, benefits, and professional status. Be sure your life insurance coverage reflects your new earnings or job risk level.
6. You bought a new vehicle
Review: Auto, Umbrella
A new car means it’s time to contact your insurance provider. Rates vary by make and model, so a quick update helps ensure you get the best possible premium.
7. You made a major purchase
Review: Homeowner’s or Renter’s, Umbrella
Have you purchased high-value items like art, jewelry, or collectibles? Make sure your current coverage protects these new assets. If your net worth is increasing, consider umbrella insurance to add an extra layer of liability coverage.
8. You renovated your home
Review: Homeowner’s
Home upgrades often increase property value. Whether you added a new kitchen or installed a security system, your policy should reflect those changes. Some safety upgrades may even lower your premiums.
9. You’re driving less
Review: Auto
Working remotely, moving closer to work, or carpooling can reduce your driving. Less time on the road often means lower risk, which can lead to reduced rates. Be sure to inform your insurer of any changes.
10. You’re retiring
Review: Auto, Life, Long-Term Care
In retirement, your driving habits and insurance needs change. Some companies offer auto insurance discounts to retirees. From a pure protection standpoint, you may also no longer need life insurance if you’re debt-free with grown children. Life insurance can still play a key role in wealth transferring, estate taxes, and charitable giving. However, now may be the right time to consider long-term care insurance to protect your savings.
Why an insurance review matters
Your life and financial goals evolve. An insurance review helps make sure your policies provide the right protection. Here’s how you can benefit:
- Better protection for your family, home, and valuables
- Potential savings through policy bundling or reduced coverage needs
- Confidence knowing your coverage matches your lifestyle
Even if your policies are not up for renewal, a big life event is a good reason to schedule an insurance review.
How often should you review your insurance?
We recommend reviewing certain coverages once a year to every couple of years and any time a significant life change occurs. This includes:
- Getting married or divorced
- Buying or selling property
- Having a child or adopting
- Starting a new job or retiring
- Gaining or losing dependents
- Making major purchases or renovations
If it’s been more than a year since your last review, or if your life looks different today than it did last year, now is the perfect time to get in touch. For more information on insurance protection, visit our library of articles.
Contact your wealth advisor for an insurance review
Mercer Advisors offers insurance as part of our integrated wealth management solution, which also includes financial planning, tax planning and preparation, estate planning, and investment management. Contact your advisor to schedule your insurance review. If you’re not a client and would like more information, let’s talk.
Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.
Tax preparation and tax filing are a separate fee from our investment management and planning services. Mercer Advisors is not a law firm and does not provide legal advice to clients. All estate planning document preparation and other legal advice is provided through select third parties unaffiliated to Mercer Advisors. Mercer Global Advisors has a related insurance agency. Mercer Advisors Insurance Services, LLC (MAIS) is a wholly owned subsidiary of Mercer Advisors Inc. MAIS provides individual life, disability, long term care coverage, and property and casualty coverage through various insurance companies. For Mercer Global Advisors clients who wish to purchase insurance products, MAIS has entered into a non-exclusive referral agreement with Strategic Partner(s), where the Strategic Partner will provide necessary services relative to the marketing, placement, and servicing of the insurance products, including without limitation preparing and presenting illustrations, supporting the underwriting process, assisting with the completion and execution of applications, delivering policies, and servicing in-force business. MAIS and the Strategic Partner will be listed as either “agents” or “co-agents” on the policies. While Mercer Global Advisors does not receive a referral fee, Strategic Partner receives a percentage of the commission revenue. MAIS and Strategic Partner do have a revenue sharing agreement.
