Let’s talk insurance. Far from everyone’s favorite subject, insurance is something that everyone probably has and must periodically review. An annual insurance review makes good financial sense, and makes you a smarter insurance “consumer”. Here are some points to consider as you review your various insurance coverages:
Health Insurance. Now’s the time to start looking at your deductibles and co-pays for 2017 to see if you are in the right plan. If your employer has an open enrollment period, that’s the perfect time to figure out any possible changes for 2018.
Life Insurance. Review your current life insurance policies to ensure you have enough coverage for yourself, spouse and/or dependents. The amount of life insurance you need depends on the number of people who rely on you for support. Whole, variable, and universal life policies combine insurance coverage with an investment future. If you want life insurance only, consider term life.
Disability Insurance. Disability insurance provides a set amount or percentage of income if you become disabled and unable to work. Disability insurance may be short-term, long-term, or cover critical illnesses. Studies show that less than one in six Americans own enough disability insurance to provide a comfortable lifestyle during a two-year disability. If you have adequate emergency funds, consider electing a longer waiting period for coverage to begin (if the plan allows) to reduce your premiums.
Homeowners and Auto Insurance. If you’re going to review your insurance coverages, don’t forget to review homeowners/rental and/or auto as well.