There are all sorts of reasons why you should review the suitability of your various insurance policies. For instance when looking at your car insurance a couple of possible considerations might be: how much would it cost if I have to replace the car and what happens now that I have two P platers using the car regularly?
All your policies need to be reviewed at times to ensure that they are of the highest quality, competitive and suit your current and possibly, future circumstances. A periodic review is certainly good practice particularly if your policies have been in place for a considerable time. Your cover may need to be reassessed to meet your changing needs and circumstances. As your circumstances change there may be coverage that needs to be removed, added or increased.
Too little or too much
Some of the most common changes such as relationship status, family members, a new address, renovations, debt levels and changing income all warrant a review of your policies. You should not risk being underinsured. To safeguard against under-insurance, consider all of your liabilities and review your sums insured frequently, at policy renewal but also as circumstances change. When comparing policies, consider product inclusions, deductibles, exclusions and coverage limits that are most appropriate for your needs. Also, do you know what insurance cover, if any, is provided within your superannuation fund?
Similarly though, you do not want to be over-insured and paying excessive premiums. Check the cost of your policy to ensure you are not overpaying for what you are receiving and that your coverage remains comprehensive. It is also worth noting some policies, such as income protection insurance, are tax deductible.
Making it easy
Sometimes, understanding all the various insurance options and their applicability to your life situation can be daunting. Reviewing them might even seem onerous.