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Reviewing Your Insurance Policies: An Important Part of your Financial Plan

Reviewing Your Insurance Policies: An Important Part of your Financial Plan

July 14, 2023

There’s an expression that says, “Nothing lasts forever.” Well, maybe love does, but even that will change form and expression over the years…it will adapt to our ever-evolving lives…children grow up, parents pass away, a spouse becomes ill. These are all life events that can affect the type and amount of insurance we carry.

Insurance is meant to provide us with a sense of security and protection against unforeseen events or a cushion for events we know will eventually happen. However, it is important to remember that not all insurance policies were meant to be “forever”. Some policies are designed to be temporary, to align with the ever-changing realities of our lives.

It is good financial planning and strategy to regularly review your insurance policies to ensure they are continuing to meet your needs. By doing so, you can make necessary adjustments, maintain sufficient coverage, and have financial peace of mind.

Different types of policies are designed for specific purposes. Some insurance policies may have been initially purchased with assumptions about the future that do not align with your current situation. Economic conditions, market trends, and personal circumstances may have changed since then.

For instance, term life insurance covers designated time periods, usually ten to thirty years. They provide a death benefit if the insured passes away during that time. Once they expire the coverage ends. These policies should be regularly reviewed throughout their term to determine if you still require such coverage or if there are better options.

Life events, such as marriage, starting a family, or purchasing a home, often require adjustments in insurance coverage. You will want your policies to ensure that you have adequate protection for your loved ones, assets, and financial goals. Doing regular insurance reviews provide the opportunity to explore additional coverage options or consolidate policies for better efficiency and cost-effectiveness. This proactive approach ensures that you are adequately protected against potential risks and unexpected events.

Regular reviews of your insurance policies also offer cost-saving opportunities. Insurance markets are ever-evolving; new products and competitive rates may be available. By reviewing your policies, you can compare options and perhaps find better value without compromising on coverage.

Your One Financial Services financial advisor can assist you in conducting a thorough insurance review, providing peace of mind that you have taken the necessary steps to protect yourself, your loved ones, and your assets.