Changing economic conditions means you may need more insurance coverage than you once did. As an example, in the past, a consumer might have based his/her life insurance coverage on their income at that time. But, if something happened and they were no longer around, their beneficiaries would soon discover, to their dismay, that the current coverage was not adequate.
They would soon discover that more capital needed to be at work, to provide the same income as the salary that it was supposed to replace. In other words, if you make $50,000 per year and you only have $50,000 in coverage, then your beneficiaries have nothing left in only one year!
Disability and long-term care insurance are even more complicated than traditional life insurance. For example, do you want coverage that lasts forever? Are there potential health issues in your family? That’s why you need to speak to a independent insurance professional, as they can give you guidance as to what course to take.
In the case of homeowners insurance, your home could be under-insured if you’ve renovated or if the cost to build a home has increased due to higher material costs or other factors that you may not even be aware of.
That’s why experts recommend reviewing insurance coverage once a year to make sure it still fits your needs. Talk to your independent insurance agent to get the necessary information to make wise decisions!