Life Events That Warrant Updates to Your Insurance Policies

It’s well-known that insurance isn’t one-size-fits-all – different circumstances naturally require a variety of products, coverage options and price points. But what you might not know is that insurance isn’t a one-and-done process. As we navigate through life, our insurance should evolve with us through changes to already established policies (adding on a new vehicle) or new policies altogether (welcoming a new addition to your family).

Here are the life changes you may experience that should catalyze changes to your home, life and auto insurance policies to ensure you’re covered for what’s most important.

Auto

Acquiring a new vehicle is the most frequent instance of a life event that would alter your auto insurance, but even making changes to an existing vehicle could incur an update to your policy. Modifying your current vehicle with customizations or significant upgrades could increase the value of your car and therefore require a policy that properly reflects the coverage you need. Factors like the vehicle’s make, model and safety features can affect your premium.

More life events that would trigger auto insurance policy changes include:

• When your teen gets licensed.
• When your teen is sharing a vehicle with you.
• When your teen is taking a car to school.
• Getting married/adding a spouse to an existing plan.
• Change in job status (i.e., retirement, hybrid or fully remote work, etc.) as this may impact annual mileage rating factor.
• Relocating to a different city, town or state.
• Buying, selling or trading in a vehicle.

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Home

One of the most common life events that call for a home insurance policy update is buying a new home or condo. When transitioning from renting to homeownership, it’s important to switch from renters insurance to a comprehensive homeowners insurance policy as this coverage protects your home’s structure, personal belongings and liability. In most, if not all cases, mortgage lenders may require you to carry a certain level of coverage in order to purchase.

Even if you’ve lived in the same home for years, your home insurance policy may need to change if you’re making substantial renovations or undergoing any remodeling projects like finishing a basement or constructing an addition. Renovations can increase the value of your home and alter its structure, which may require adjustments to your homeowners policy. In this instance, inform your insurance provider about the changes to ensure adequate coverage.

More life events to consider for home insurance include:

• Starting a new business.
• Marriage.
• Divorce.
• Getting a dog.
• Purchasing a trampoline or pool.
• Purchase of jewelry, furs or expensive artwork.

Life

The happy arrival of a new family member brings joy and responsibilities, including the need for insurance updates. When you have children, it becomes crucial to reassess your life insurance policy to ensure everyone is covered and cared for in the event of an untimely passing.

This may also be an opportune time to discuss term life insurance versus whole and which suits your family best considering the new circumstances. While term life insurance is ideal for covering large debts (mortgages, other loans, etc.) for a set period of time, whole life insurance is typically used for estate planning, final expenses and leaving a legacy.

Other life events that would need changes to life insurance include:

• Getting married.
• Purchasing a home.
• Job changes.
• Retirement.
• Teen(s) entering college.

Life is full of unexpected events, and it’s important to have insurance policies that adapt to those changes as well as you do. From purchasing a new home to starting a family or acquiring a new vehicle, these life events necessitate updates to your home, life and auto insurance policies. By regularly reviewing and adjusting your coverage, you can ensure that you are adequately protected and prepared for whatever life throws your way.

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