The Biggest Insurance Mistake: Failing to Review Your Coverage as Life Changes

When was the last time you reviewed your insurance coverage?

For many people, the answer is, “When I first signed up.”

That is one of the biggest, and potentially most expensive, insurance mistakes a person can make.

Insurance is not something you should purchase once and then forget. Your life changes from year to year, and your coverage should change with it. A plan that worked well for you several years ago may no longer provide the protection, benefits, or value you need today.

Life Changes, and Your Insurance Needs Change Too

Think about how much can change in just one year. You may have:

• Started a new job or retired
• Experienced a change in income
• Gotten married or divorced
• Welcomed a child or grandchild
• Purchased or sold a home
• Started taking new medications
• Been diagnosed with a health condition
• Become eligible for Medicare
• Started caring for an aging parent
• Opened or expanded a business
• Paid off debt or taken on new financial responsibilities

Each of these changes can affect the type and amount of insurance coverage you need.

For example, a new health condition or prescription could make another Medicare or health insurance plan a better fit. A growing family may need additional life insurance. Someone nearing retirement may need to consider long-term care, supplemental health coverage, or income protection.

Without a regular review, you could be paying for coverage you no longer need, or worse, discover that you do not have enough protection when you need it most.

Reviewing Your Insurance Is About More Than Price

Finding an affordable premium is important, but the lowest price is not always the best value.

A proper insurance review should look at:

• Your current premiums
• Deductibles, copays, and out-of-pocket costs
• Prescription drug coverage
• Doctors, hospitals, and provider networks
• Life insurance beneficiaries
• Coverage amounts
• Income protection
• Long-term care needs
• Changes in your health, family, or finances
• New programs or benefits that may now be available to you

The goal is not simply to change your insurance. The goal is to make sure your current coverage still matches your life.

Sometimes, the best recommendation is to keep exactly what you already have. Other times, a review may uncover gaps, unnecessary expenses, or valuable benefits you did not know were available.

Why August-September Is a Great Time for an Insurance Checkup

August is a natural time to pause and prepare for the remainder of the year.

Medicare’s Annual Enrollment Period begins in October, and Marketplace Open Enrollment follows later in the fall. Reviewing your coverage now gives you time to understand your options without feeling rushed.

It is also a good opportunity to review life insurance, supplemental benefits, short-term disability coverage, and other protections before the busy holiday season begins.

Your Action Item

Set aside 15 minutes over the next few weeks to complete a personal insurance checkup.

Ask yourself:

1. Has my health, income, family, job, or living situation changed?
2. Are my doctors and prescriptions still covered?
3. Are my beneficiaries and contact information current?
4. Would my family be financially protected if something happened to me?
5. Do I understand what my insurance will—and will not—pay for?
6. Am I taking advantage of every program or benefit for which I may qualify?

If you are unsure about any of these answers, it may be time for a professional review.

Let’s Make Sure Your Insurance Still Fits Your Life

You should never have to wait until a claim, diagnosis, retirement, or emergency to discover that your coverage is outdated.

As a local insurance advisor, I help individuals and families review their Medicare, health, life, supplemental, disability, and long-term care options. My goal is to help you understand your coverage, identify possible gaps, and make informed decisions based on your current needs.

Your action step for August: Call my office and schedule your complimentary insurance review.

Even if no changes are needed, you will have the peace of mind of knowing your coverage has been reviewed and still fits your life.

>>Related Reading:The Benefits of Working with a Local Insurance Agent

If you have a friend or family member whose health, income, family, job, or personal situation has changed, please encourage them to call me as well. I would be happy to help review their current plan, update their insurance needs, and make sure their coverage still fits their life today.

Call Brenda Gilliam at 423-276-5807 to schedule your insurance checkup today.