Many have not realized that insurance is one of the major life decisions they need to make. The choices you make with your insurance could affect your life immediately you sign the dotted lines, a week from now or in 20 years.
Let’s work under the assumption that you’ve been given a 24 hours window to fix your insurance; what will you do or undo? Here’s what you should do;
1. Do a Policy Summary
Look at the front page of your insurance policies; you’ll find a policy summary or a declarations page. Write down the relevant information about what the policy covers. Categorize the policies based on the type, e.g., auto insurance, disability insurance, life insurance.
Most importantly, note the policy number, date issued, premium, benefits, and beneficiaries.
2. Create “What If” Scenarios
The essence of insurance coverage is to protect you from the what-ifs. An essential part of improving insurance coverage is to present the likely scenarios to your insurance advisor.
Think of it like what if my tree falls on my neighbors’ car? What if your teenage son learning how to drive is involved in an accident. Look at these scenarios in line with what you have in your policy summary; whatever is not covered should be looked into immediately.
3. Ask Questions
You will need to visit your insurance advisor within the 24 hours window and ask questions about the fine prints. It’s OK not to understand your policies; what isn’t is failing to get answers. Your insurance advisor is there to help you better understand what you are paying for.
Only your advisor can help you with the answers you need.
4. Carry Out a Policy Review
This is the big picture you should aim for; it’s about situating your coverage to reflect your current needs. It’s not only the job of your insurance agent and advisor to help you understand your policy, but they also have the job of providing you with the best coverage.
The beauty of it all is that you wouldn’t have only improved your insurance coverage. You may be lucky to have saved a buck or two also.
By improving your insurance coverage, you’ll realize that you are now in a better position to afford medical costs, provide your family with financial security, and adjust your policies to new life circumstances.