It’s a danger with any recurring bill or service… you sign up at some point in time and then can go for years and years without looking back, wondering if what you have is still fit, necessary, enough, etc. It is also one reason why insurance agents are paid so much to get a new client to sign up. Chances are that client will be loyal and a client for years if not decades. While I was in the process of putting together all of my insurance products needs and services, it struck me how for many of these, I no longer had the optimal coverage.
Why is it that most of us take the time every year to do a spring cleaning but never take the time to look at the services that we pay for every month. In some cases, such as a phone or cable bill, we usually get a monthly statements that reminds us of how much we’re paying. But for many insurance products, no monthly invoice comes with only the debit in our bank account as an actual footprint of the money leaving every month.
Settling for an insurance policy that isn’t perfect can work at times but if you keep that policy going for years, it can turn out to be a terrible decision.
How To Review Your Insurance Policies
1-Get information on all of your existing policies: this will take more time to do the first time but once you have it clearly written down, you will be able to simply update this file (or do it every time you modify an insurance product)
2-Go over each insurance category and look over possible gaps between what you need and what you own: Do you own a life insurance that you no longer need? Do you feel like buying an annuity would give you added comfort? List all of the gaps or questions.
3-Get information about those gaps: Do you really need this insurance? What kind of penalty (if any) would be involved in cancelling? etc. I would obviously highly recommend that you use our own websites to find out your potential gaps, we are writing a lot about it. Simply join our newsletter
4-Review what you are paying: It’s often quite difficult to know if you are paying too much without talking to friends or neighbors, etc. In any case, I recommend checking every 2-3 years just to get an idea of what is available elsewhere.
5-Get quotes: Ideally, try to get quotes for all of your insurance policies at once. You might get better deals, you could also discuss with your current insurance company to see if they would be able to take down the rates, etc. In some cases (life insurance for example), they will have very little flexibility but in other cases such as car insurance, they might find some promotion that you can be part of which they had “forgotten” to let you know about.
6-Review Information: It’s important for your insurance company to have the most updated information about you, your address, your family, etc. These could end up making an insurance policy invalid (even though you’ve been paying) once you do make a claim.
Don’t Postpone This
It is so easy to delay such reviews forever but they can end up making a huge difference. Imagine being able to save $20-30 or even more every month? That would be like get a new annuity, for free:)
When Is The Last Time You Did Such A Review?