5 Key Life Changes That Should Prompt an Insurance Review in the New Year

As the New Year approaches, it’s a natural time for reflection and planning. Many of us set goals, review our budget, and prepare for what lies ahead. But there’s one critical area that often gets overlooked—your insurance coverage. Life changes can drastically impact your insurance needs, and if you’re not adjusting your policies accordingly, you could be leaving yourself exposed to unnecessary risks. Here are five key life changes that should prompt you to schedule an insurance review in the New Year to ensure you and your loved ones are fully protected.

1. Buying or Selling a Home

Your home is likely your most valuable asset, so protecting it with the right insurance is crucial. Whether you’re buying a home, upgrading to a larger property, or downsizing to something smaller, your homeowners insurance needs will change. If you’re selling, you might also need coverage to protect you during the selling process, including potential liability issues.

Example: Mark and Lisa just purchased their dream home and were excited about the move. During their insurance review, they realized their new house needed additional coverage due to its location near a flood zone. They were able to secure the right policy to protect against unexpected flood damage.

2. Welcoming a Child

A new child brings immense joy and responsibilities. With another dependent to care for, it’s critical to review your life insurance and health insurance policies to ensure your family is financially secure in case something happens to you. Updating your beneficiaries and increasing your coverage amounts are key steps when your family grows.

Example: When Sarah and Brian welcomed their first child, they updated their life insurance policies, ensuring their child would be financially supported in case of an unexpected tragedy. They also reviewed their health insurance to confirm it covered their expanding family.

3. Marriage or Divorce

Marriage and divorce are two of the most significant changes that can affect your insurance needs. When you get married, it’s common to combine car insurance policies or purchase a life insurance plan to protect your new spouse. You might also want to add your partner as a beneficiary on your existing policies. Conversely, after a divorce, it’s essential to update policies to remove an ex-spouse as a beneficiary or adjust coverage on shared assets like cars or homes.

Example: Emily recently married her high school sweetheart and was surprised to learn she could save on car insurance by combining their policies. They earned a multi-car discount by having more than one vehicles listed on their auto policy.

4. Starting or Changing a Business

If you’ve recently started a business or changed the structure of an existing one, this could have major implications for your insurance needs. Business owners may require additional liability, property, or workers’ compensation insurance to protect against risks. Even if you’re just working from home, you might need a specialized policy to cover your business activities.

Example: John recently turned his side hustle into a full-time business. During his insurance review, he learned that his homeowners insurance did not cover his business equipment, so he added commercial property insurance to safeguard his growing enterprise.

5. Retirement

Retirement is a huge milestone that comes with changes to your lifestyle and, often, your financial situation. It’s the perfect time to re-evaluate your insurance needs, particularly in areas like health and life insurance. As you move into retirement, you may need to adjust your coverage for changes in housing (ie. downsizing, moving into a condo, or buying an RV, long-term care, lower your life insurance amounts, or switch to a Medicare supplement plan.

Example: After retiring, Jim and Susan decided to downsize their home and travel. They reviewed their insurance policies and adjusted their life insurance and homeowners coverage to reflect their new lifestyle, giving them peace of mind as they entered their golden years.

Get an Insurance Review Today!

Life changes fast, and your insurance should keep pace with it. As the New Year approaches, there’s no better time to make sure you’re fully protected against life’s surprises. At Engineered Insurance Services, we specialize in helping you understand how major life events impact your coverage and make sure you’re prepared for the future. Contact us today for a comprehensive insurance review, and we’ll help you adjust your policies so that you can start the year with confidence. Call us or contact us to schedule a consultation and protect what matters most.