Reevaluate Your Insurance Policy in 2020

The new year has just begun, it’s the perfect time to reevaluate your options and see if you still have the best coverage. 

 

The start of a new decade is a great time to take a hard look at your personal finances. For people who are working on a tight budget, it’s practical to review your expenses and see where you can make some cuts. One of the most common categories that you should be looking at is your insurance.

 

If you are looking for options, it would be best to consult with your insurance agent or other professionals who will give you their honest opinion. You have the freedom to cancel, reduce, or add coverage in your insurance policy but you do need to think everything through before making any concrete decisions. 

 

Check out the following aspects when evaluating your life insurance policies: 

 

Cost – While it’s true that cheaper coverages feel lighter for you financially, you should know that cheaper isn’t necessarily better. If there are a number of compromises in terms of sum assured and on the other benefits then you’re not saving money. See to it that your policy is cost-effective and is compatible with what you’re looking for. 

 

Convenience – Insurance agents can make your life better as they make the process a lot easier and much more efficient. You don’t want to go through a big hassle just to pay your insurance. Being able to purchase and submit documents online makes a difference. 

 

Coverage – This is the most important feature that you need to evaluate in your policy. Be sure that your policy has a healthy sum assured and there’s a good number of availability of riders that can be added to your basic policy plan. Some of these riders may include critical illness and disability, term rider, accidental death benefit, and others. 

 

Customer Service – Some websites have 24/7 customer service available and you can just visit the site and type in your questions. You can also evaluate how helpful the managers and their email customer support are. 

 

Cut back carefully or cancel altogether

While cutting back seems like the best option to save money, you need to be careful of the things you are going to let go of. However, when you’ve seen that you don’t actually need an insurance policy, then canceling it is probably the best option. 

 

For example, if you have a car then keeping your car insurance is logical. The same is true of home insurance if you are a homeowner. But some kinds of coverages that you may not deem necessary are dental insurance, vision insurance, pet insurance, and other supplemental insurance. 

 

Find out what your coverage covers

Policy wordings can get so complex and you end up not reading everything and leaving it to your agent. This is a common but grave mistake. You need to know what you are paying for. Pay attention to the kinds of risk events that the policy covers, the limit, and when the risks even occur. 

 

Talk to your agent

Honesty is still the best policy and having an open line of communication with your agent is a good thing. When things are getting tough, you can talk to your agent to discuss your plans going forward. Agents are experts and they can switch some details and offer different coverages for a lower price. 

London Insurance Agency has some of the best agents in the area. We are capable of answering your questions and help you in evaluating your coverage to make sure that you are getting exactly what you need and what you’re paying for.