Insurance Planning
Welcome back friends!
With the arrival of Labor Day, summer 2023 is a wrap! It’s only September but before you know it we’ll be eating Thanksgiving turkey and shopping for holiday gifts. But that’s not what you wanted to hear… or maybe you do?!
Before bringing this year to a close, we are carving some time and take a look at a subject that is an inevitable part of adulting: INSURANCE. A yearly insurance review is an essential financial planning exercise, whether you want to continue with the same company and coverage or not. Life ebbs and flows due to key events (births, deaths, weddings, new jobs, retirement…) Make sure your insurance choices reflect those life changes.
Let’s take a look together:
Life insurance: yay o nay?
Are you the parent of young kids?
Are you the sole breadwinner in a household with dependents?
Would your loved ones lose the family home if you are suddenly no longer around?
If you answered yes to any of the above, you need to consider life insurance. Let’s talk.
Health insurance:
Will your favorite providers still be covered under your current plan in 2024?
Do you have any new health conditions that require coverage adjustments?
Are you getting married or getting a divorce?
Do your partner’s health insurance options offer better coverage for your family?
Are you retiring in 2024?
Are you turning 65 soon?
If you answered yes to any of the above, you need to review your current plan. As next year’s health care plan choices are decided in Q4, there’s no better time than September to identify any necessary changes you need to implement for next year.
Homeowners insurance: you snooze, you lose!
You’re probably satisfied with your current homeowners insurance policy, one you’ve had for many years that renews automatically. Here’s why we’re not fans of automatic renewals gone unchecked:
The coverage limits under your plan might have changed over the years and unbeknownst to you, you’re under-covered.
Your old policy might not be adequately capturing your home’s current value reflecting recent asset appreciation due to accelerated market conditions or recent renovations.
Your unnecessary loyalty might have you overpaying for the coverage you’re getting.
We can't stress enough the value of having a good insurance broker who can help you avoid the above pitfalls. To find that partner, ask for recommendations within your network and interview possible candidates to confirm it’s a good fit for you. Even if you find a star agent, it’s still on you to reach out and ensure a yearly review is conducted as nobody will come knocking on your door to volunteer for that task.
Last but not least: Car, umbrella and other insurance policies:
Did you pay-off your car or did you get a new one?
Do you need to add or take-off any drivers from your auto insurance policy?
Are your floater policies up-to-date? Do you need one?
Is the coverage from your umbrella policy still adequate? Do you need an umbrella policy? Hint: The answer is probably yes!
If you have questions about the above, feel free to reach out.
A yearly insurance review process is a necessary aspect of our financial planning conversations. We don’t write insurance policies but we can put you in touch with experts who do so. Our partners act as fiduciaries, so their interest is aligned with yours, not with a specific company or product. They can help you identify, understand and select the best insurance combination for your evolving needs.
Ready to conduct your yearly insurance review? Go for it! And if you need help, we are here for you.