You've worked hard to build a life you love. Now ask yourself whether you have the proper protection in place to keep it safe.
When it comes to insurance, staying ahead is your best defense against uncertainty. Here, we’ll discuss insurance policy types and scenarios that might suggest it’s time for a policy adjustment.
Several layers of insurance typically protect you. Here are some of the most common types of policies you should review on an annual basis.
Health insurance1: Ensures medical expenses are covered
Auto insurance1: Covers your vehicle and liability when you are driving
Disability insurance: Safeguards your income if you're unable to work
Property insurance1: Protects your home and belongings from damage or theft
Life insurance: Provides financial support to your loved ones in the event of your passing
Liability insurance1: Offers additional liability coverage beyond standard policies to protect your assets
Neglecting to adjust your insurance as your needs evolve can jeopardize your finances and future. You might find yourself facing coverage gaps, risking being either under or over insured, and experiencing financial consequences as a result.
Annually checking in on your insurance policy can prevent such consequences.
As life changes, so do your insurance needs. Here are key signs that it's time for an adjustment.
Some of life’s more significant milestones, like marriage or divorce, can significantly alter your insurance requirements. Walking down the aisle may prompt the need for combined policies. Most insurance policies require you to make adjustments within 60 days of getting married. On the other hand, going through a divorce1 likely means you’ll need to reassess beneficiaries. And if you’re the non-policy holder, you’ll need to find your own coverage once the divorce is finalized.
Welcoming a new family member or sending a child off to college can reshape your insurance needs. For instance, growing your family also increases your responsibility to provide for them. Life insurance can provide financial security for your loved ones in the event of your death and allow them to continue living the lifestyle they are accustomed to.
Similarly, when your child goes to college, you’ll want to review your auto insurance policy1 to ensure they’re still covered. Plus, don't forget to reassess your homeowners or renters insurance.1 If your child lives off campus, they may need their own insurance policy to protect their possessions.
Starting a new job or getting a promotion can affect your disability insurance. For example, a promotion typically comes with a higher salary, and you might need to review your disability insurance to confirm it covers your current standard of living.
A change in income can also affect your eligibility for government assistance programs and subsidies, impacting your healthcare coverage.
Speaking of healthcare coverage, changes in your health, whether positive or negative, can influence your health insurance requirements. For instance, if you are diagnosed with a chronic condition, you may need to increase your deductible or switch to a plan that covers more services. On the other hand, you may qualify for a discount if you’ve recently given up smoking.
It’s important to know that outside of open enrollment, you may face limitations when changing your health insurance providers except in cases of qualifying life events such as marriage, divorce, childbirth, or loss of employment.
Acquiring new property or valuable possessions, like a home or jewelry, calls for a review of your homeowners or renters insurance. Having this coverage is crucial in the event of an accident or natural disaster.
In addition, some insurance companies will only cover a certain percentage of the value of an asset, making it important to understand your policy’s limits.
Purchasing a new vehicle or significantly modifying an existing one warrants a thorough review of your auto insurance policy. Make sure your coverage meets the needs of your vehicle and driving habits.
As your assets grow or you face new risks, you’ll want to adjust your liability coverage accordingly to protect yourself from potential lawsuits or financial loss. Generally, you'll want enough liability insurance to cover your net worth.
Adjusting your insurance coverage doesn't have to be an overwhelming process. Here are some simple yet effective tips to ensure your policies meet your current needs:
Review policy limits: Make sure your coverage limits are appropriate for your financial situation and potential liabilities
Check exclusions and inclusions: Analyze policies for exclusions or limitations that could be leaving you at risk
Monitor insurance market changes: Know what's happening in the market to get the best coverage and rates
Regular policy reviews: Conduct annual reviews as part of your overall financial strategy to spot any coverage gaps or overlaps before they become an issue
You hold the power to protect what matters most in life. If you’re not confident that your present coverage aligns with your current circumstances, adjust your policies as needed and help give yourself the peace of mind that comes from knowing you're prepared for anything.
Need some guidance? Let’s connect to review the coverage you have in place and what may need to be adjusted this year.
1Home / Auto, Liability, Property and Casualty, Renters, are not offered by New York Life Insurance Company or its agent.
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #6453146 exp. 4/2/2026