The Importance of Reviewing Your Insurance Policy Regularly

Life is uncertain, that’s a constant. It can throw us a curveball when we least expect it. That's where insurance comes in— the safety net, providing that extra layer of financial security and peace of mind.

However, simply purchasing a policy isn't enough to guarantee adequate coverage. Why you wonder? Let us find out!

1. Defining Insurance Policies
Insurance policies, whether life, health, auto, home etc., are a contractual agreement between the insured and the insurer, demarcating the terms, conditions, deductibles, exclusions etc. Understanding these components is essential for making informed decisions about your insurance coverage and avoiding potential insurance claim-related issues or claim rejections.

2. The Need for Regular Policy Review

Once you've invested in insurance, it's natural to expect it to provide protection. However, the reality is more nuanced. While insurance aims to shield you from unforeseen circumstances, ensuring that your coverage remains aligned with your changing needs is paramount. Thus comes the need for regular insurance policy reviews.

3. Why do they matter?

Regularly reviewing your insurance policies offers several benefits. It ensures you have adequate coverage to protect against unforeseen events, such as accidents, illnesses, or natural disasters.

Here are some reasons to review your policies regularly -

A. Change of circumstances -

The policy must evolve along with your life. With changes in finances or family, the policy must also reflect its ability to protect this new aspect of your life such as -

• Marriage
• Family growth
• Starting or selling businesses
• Loans
• Mortgages for property purchases
• Planning retirement
• Executing a Will or change of beneficiary
• Financial shifts or asset accumulation
• Divorce

B. Changes in Health and Lifestyle

Changes in health and lifestyle can significantly affect an insurance policy. Insurers may provide benefits for healthier changes in lifestyles!

• Making healthier life choices such as quitting smoking or alcohol can qualify the insured for a lower premium through new health check-ups.
• Premiums may also be reduced if the insured is no longer involved in high-risk jobs, sports or hobbies.

C. Change in Insurance Policies or Providers

Regular reviews can allow policyholders to determine potential gaps in coverage or opportunities for savings, thus resulting in them wishing to change their insurance providers or the insurance policy.

• Reviews can give the policyholder a chance to upgrade the policy through riders\endorsement to suit the current needs of the insured better.
• In case of potential mis-selling of insurance policy, the policyholder can take immediate actions against it.

D. Avoiding a Lapsed insurance policy

Regular policy reviews help avoid a potential lapsed insurance policy due to missed premium payments or unknown payment issues. In case of issues regarding unjust claim rejections or lapsed insurance policies, contact Bima Seva Kendra for claim rejection services or reinstating lapsed insurance policy. Remember, a little guidance goes a long way in the insurance world.

Conclusion

Neglecting to review your insurance policies regularly can leave you vulnerable to underinsurance, where coverage may fall short in times of need. an accident, a sudden illness, or acts of nature don’t knock on the door before arrival. So, don't wait until disaster strikes, stay ahead of the game and keep living life to the fullest.