Life and health insurance policies are a key part of your overall financial plan. It’s important to ensure that these policies are reviewed each year to ensure that you have the coverage you need. If there are gaps you can work to fill them.
In this checklist we focus on items to review your policies. Some examples include the following:
Health insurance
- If you are married and both have access to health coverage does it make sense for you to each take your own coverage or to choose the better of the two plans and both be covered under that one?
- If you are paying for coverage on their own, has your situation changed such that they should consider shopping for a new policy?
- If you are retired and on Medicare, you should ensure that you review your situation each year to see if you need to make any changes during the annual enrollment period. You also need to ensure that they either have credible drug coverage or that they select a Part D option in order to avoid lifetime penalties.
Life insurance
- If you are covered by life insurance offered by your employer, have the coverage options or limits changed?
- For those who own permanent life insurance it’s a good idea to review the policy including how any dividends are being applied and how the policy is performing.
- For those who own a term policy, review the time left on the policy’s term and if their needs have changed.
Disability insurance
- If your employer provides disability insurance, have there been any changes to this coverage. Also be sure to understand all of the parameters of the coverage to ensure that it meets your needs.
- Review other potential sources of disability income such as Social Security and their own personal savings.
Long-term care insurance
- Review the terms of the policy to ensure that they still meet your needs. This includes covered services, the benefit amounts and any riders such as inflation protection.
- Have you received a large increase in their premium? If so, it might make sense to review other options.
