By: Mer Harper
Life is constantly changing, but what does that mean for your insurance needs? Surely they don’t change that often, do they? You might be surprised that an annual review of your insurance policies could provide strategic changes to either enhance your policy or save you money. Here are a few life events that typically warrant changes in insurance coverage:
You’ve Accepted a New Job:
Maybe you’ve recently graduated or are looking to make an advancement in your career. New jobs happen and we sometimes forget to look at what changes outside the realm of paychecks and work hours. Often, employers might offer life and disability insurance. If your new employer offers benefits that you once paid for personally, it is time to cancel your plan and join theirs.
Unfortunately the opposite can also be true. Perhaps you had a really solid short-term disability plan at your former employer, but the new one doesn’t offer this option. It’s time to do some shopping to close the gap in your coverage.
Your Income Made a Substantial Shift:
Let’s be real, you won’t always make the salary you are today. Although we all hope for raises, pay-cuts are also a very real situation that could arise. In the event of a pay-cut, you might want to assess your current options to see if there is opportunity for cost savings or different types of policies you could use. For instance, you might consider swapping your full coverage life insurance for term life insurance, but keep in mind this option might not be right for everyone.
With pay raises come greater expenses and room for more comprehensive plans. You may find yourself needing more disability insurance to cover your mortgage, auto lease, and utilities if something were to happen. Additional life insurance could be desired for the same reasons.
You Recently Got Married or Divorced:
Marriages can bring insurance discounts, such as lumping policies together. Once things have settled after the wedding and honeymoon, take some time to do some shopping around for new polices. You and your new spouse might also find a need for additional insurance for valuables such as engagement rings.
On the other hand, if you’ve experienced divorce you probably want to call your insurance companies to let them know your former spouse will no longer be included on your plans. Joint plans will need to be split and you might have to shop around for new providers or better coverage.
You Have Made Additions to Your Family Tree:
Having a child is one of the most exciting and stressful life events a couple can have. Be it adopted or by birth, children inherently increase the household expenses. These expenses need to be reflected in your life insurance in case the unthinkable happens. On another note, you might want to let your health insurance provider know your new little one will be joining the plan!
Your Baby Grew Into a Teen and Wants to Drive:
Is your teen counting down the days until they are eligible for their license? Fear not, insurance doesn’t have to be as stressful as watching your child gain independence. Know that your auto insurance provider will most likely suggest putting your teen on your policy, as it is generally cheaper. But that’s not to say they can’t have their own policy, if that works best for your family.
Did you know that good grades and taking drivers training courses can help lower the cost? Check with your provider to see what discounts your teen might qualify for or learn more here form the Michigan State Government
. Additionally, if your teen chooses a college more than 100 miles away from home without the car, you might be able to get a discount for the time they are not around to drive the car.
Insurance needs aren’t a one-size-fits-all item on your shelf. We already know that what plan your aunt Veronica is using might not be the best for you, but we also need to be aware of what is going on in our lives that could warrant change. So next time you pick up the phone to call mom or your best friend to tell them of the big change in your life, don’t forget to pick up the phone and call Michigan First Insurance Agency too.