Life is constantly changing. 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 help uncover ways to 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 recently graduated or you’re looking to make an advancement in your career. When interviewing for new jobs, we sometimes forget to look at the benefits beyond paychecks and work hours. Often, employers 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 solid short-term disability plan at your former employer, but your new one doesn’t offer this option. If that’s the case, it may be time to do some shopping to close the gap in your coverage.
Your Income Made a Substantial Shift
Although we all hope for job security and pay raises, job loss or a pay-cut are situations that could arise. In the event of loss or reduction in pay, you might want to assess your current options to see if there is an opportunity for cost savings or a different type of policy that would benefit you. For instance, you might consider swapping your full coverage life insurance for term life insurance. Just keep in mind this option might not be right for everyone.
Oftentimes when you see an increase in salary, your monthly expenses start to increase as well. You may find yourself needing more comprehensive plans or different coverage for your mortgage, auto lease and utilities. Additional life insurance may also be something you want to consider.
You Recently Got Married or Divorced
Marriage can bring insurance discounts, such as lumping policies together. Once things have settled after the wedding, take some time to shop around for new policies. You and your new spouse might also find a need for additional insurance to cover valuables like engagement and wedding rings.
On the other hand, if you’ve recently gone through a divorce, you probably want to call your insurance companies to let them know your former spouse will no longer be included in your plans. Joint plans will need splitting and you may 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 experience. Be it through adoption or by birth, children inherently increase household expenses. These expenses need to be reflected in your life insurance in case the unexpected 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 he or she can get a driver’s license? Fear not – insurance doesn’t have to be as stressful as watching your child gain independence. 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 driver training courses can help lower the cost? Check with your provider to see what discounts your teen might qualify for, or learn more from the Michigan State Government. Additionally, if your teen chooses to attend a college more than 100 miles away and leaves the car home, you might be able to get a discount for the time they are not around to drive.
Insurance needs aren’t one-size-fits-all. Next time you call mom or your best friend to tell them about the big change in your life, don’t forget to call your insurance agency too.
To learn more or if you are interested in receiving a quote, call 844.788.0818.
Michigan First Insurance Agency, LLC is a subsidiary of Michigan First Credit Union. Business conducted with Michigan First Insurance Agency, LLC is separate and distinct from any business conducted with Michigan First Credit Union or Michigan First Mortgage. Insurance products are not issued by or guaranteed by Michigan First Credit Union or Michigan First Mortgage.