I wrote an article for The Valley Business Journal a year ago this month titled ‘The Importance of Reviewing Your Insurance’ and it basically stated the obvious, as your life changes, so should your policies. A change in marital status, birth of a child, new job or the purchase of a home are just a few examples of life events that may create overlaps or gaps in your coverage. You’re likely preparing to do a little Spring Cleaning around your home, let’s not forget to review your policies and Protect your Assets!
Let me tell a quick story. My agency offers FFR’s (Farmers Friendly Reviews) each year, and obviously there are customers that choose not take advantage of that service. I had one particular family that has been my customer for over ten years and have their Home & Auto Insurance with me. They have a young family and my staff had brought up Life Insurance with them on a few occasions over the years. I received a phone call from Mrs. Customer this past September and she wanted to get a life policy on her and her husband. Evidently she had a major heart attack a few months earlier and was now ready for that policy. This couple is very active and in extremely good shape. We did write a policy on her husband, but she’ll now have to wait a couple years before she’s eligible for a policy and will likely have to deal with a surcharge at that time.
For the most part, insurance is not a tangible product and quite frankly can be boring. In most cases you need to experience a loss in order to fully appreciate the company you’re with and the coverage that your advisor recommended for you. Of course, that assumes that you took the time to sit down with your agent/broker and you were advised correctly. I understand the lack of excitement, as I’ve been in the insurance industry for twenty-nine years.
With that said, the lack of excitement does not lesson the importance of having proper coverage and doing your due diligence to make sure that your family and/or business is protected properly. Honestly, once you’re involved in a major claim, you’ll be happy that you took the time to sit down and review your policies. Consider it your Insurance Spring Cleaning…..It’s not Fun, but it has to be done!