The wind-down to Christmas is a joyous time of year for many. But, if you’re already looking beyond the festive season to the year ahead, why not consider starting the year by reviewing your insurance policies? Here are my top tips for reviewing your insurance for the new year.
Consider recent life changes
Have there been any significant changes in your life since you took out your insurance policies? A change in salary, increased value in assets, or new dependents can all affect the amount of coverage you need. For instance, if your salary has increased, older insurance policies might not provide sufficient cover. Similarly, changes in expenditure might also mean that your current coverage is insufficient. Make sure that your policies reflect your current financial situation and life circumstances.
Dig out your plan details
Take the time to review the specific details of each of your insurance plans. This includes understanding what is covered, the exclusions, and any limits on claims. This can help you identify any gaps in your coverage or any areas where you might be over-insured. If you have difficulty locating your policy documents, consider registering for online management services offered by your insurance provider. This can make it easier to access and review your policy details at any time.
Engage with your support services
Most insurance providers offer support services that can help you understand your policies better. Take advantage of these resources to clear up any confusion and ensure that you’re fully aware of the coverage you have. This can include speaking with a customer service representative or scheduling a consultation with an insurance advisor. They can provide valuable insights and recommendations based on your individual needs. If your provider has an app, this can be a great resource for information about these services.
Review your letter of wishes
If you have a life insurance policy that has been assigned to a trust, it’s important to consider writing a letter of wishes. This can let you provide the trustees with some guidance on how you’d like the money from the policy to be paid out on your death. Whilst these are not legally binding documents, they can be very useful for trustees and ensuring they’re kept up to date means trustees have the most recent representation of your wishes.
By taking the time to review and update your insurance policies at the start of the new year, you can ensure that you have the appropriate coverage to protect yourself and your loved ones. It’s a proactive step that can provide peace of mind and financial security for the year ahead.