September is time to review your insurance portfolio, according to the GET READY! financial calendar. Download your free financial calendar (here). Reviewing your insurance policies now, will also help you be prepared for open enrollment. Doing so now, will help you make sure that your insurance coverage still meets your needs or if you will need to make adjustments. Here is a brief overview for each of the most common types of insurance:
Auto Insurance: Make sure you have enough coverage to meet your needs. Consider increasing the minimum legally required limits for Uninsured/Underinsured Motorist and Bodily Injury & Personal Injury Protection. Ask about discounts which you may be eligible for.
Disability Insurance: You need disability insurance, if you are dependent upon your income. The odds of a disability are high. At age 40, the chances of a disability lasting 90 days or more is 21%. If you have coverage through your employer, you may want to consider an individual supplemental policy. See: Why Your Group Long Term Disability Plan May Leave You Without Enough Coverage.
Health Insurance: Whether you have individual health insurance or group insurance, you need to consider whether your preferred medical provider is considered part of your health insurance company’s network. You should also consider whether your deductible and co-payments fit your budget. Check out the Optimal Insurance Deductible Calculator.
Homeowner’s Insurance: Review whether your coverage is sufficient. Consider increasing coverage amounts if you have made home improvements or replacement costs have risen in your area. Earthquakes and floods are not typically covered under homeowners insurance policies. Coverage may be obtained by adding an earthquake or flood endorsement to your homeowners insurance policy or purchasing a stand-alone earthquake or flood policy.
Life Insurance: Review coverage amounts. If you’ve had a change in the people who are financially dependent upon you, you may need more or less insurance coverage. If you have permanent life insurance, be sure to order an in-force illustration. Check out the Annual Insurance Review guides available for free as part of the GET READY! Resource Toolkit (here).
Long Term Care Insurance: Your need for LTC will depend on whether or not you can go without insurance (self-insure). If you cannot self-insure, then consider an individual stand-alone LTC policy. Read Should I consider Hybrid/Combination Long Term Care Insurance Policies? For existing LTC policy owners, you will most likely have had premium increases, if your policy is older. If you are offered options to change your coverage when your premium increases, carefully consider the impact of changing your benefits as you cannot undo changes.