How Often Should You Review Your Insurance Policies?

Insurance plays a central role in protecting your financial well-being. While investments and savings help you grow wealth, insurance safeguards it from unexpected events. But how often should you review your policies? Which types of insurance are essential—and which might be unnecessary?

How Often to Review Insurance Policies

Life doesn’t stand still—and neither should your insurance coverage. A good rule of thumb is to review your policies annually and anytime you experience a major life event, such as:

• Marriage or divorce

• Buying or selling a home

• Having a child or adopting

• Career changes or retirement

• Significant changes in health or income

Annual reviews help ensure your coverage still aligns with your financial goals and protects your family in a cost-effective way.

Core Insurance for a Healthy Financial Plan

Certain types of insurance form the foundation of a strong financial plan:

1. Health Insurance

Health coverage is non-negotiable. Unexpected medical bills can derail even the best-laid financial plans. Whether through your employer, Medicare, or the marketplace, maintaining adequate health insurance is critical.

2. Life Insurance

If others depend on your income, life insurance helps ensure they’ll be financially protected if something happens to you. Term life insurance is often a cost-effective way to provide coverage during working and family-raising years.

3. Disability Insurance

Your income is one of your most valuable assets. Disability insurance protects it if an illness or injury prevents you from working. Short-term and long-term coverage can be essential, especially during peak earning years.

4. Homeowners or Renters Insurance

Your home and possessions represent significant investments. Homeowners (or renters) insurance protects against loss, theft, or damage and often provides liability protection as well.

5. Auto Insurance

Required by law in most states, auto insurance protects both your vehicle and liability if you’re involved in an accident.

6. Umbrella Insurance

Umbrella coverage provides an extra layer of liability protection beyond your homeowners and auto policies. It’s often inexpensive and especially important for high-net-worth individuals.

7. Long-Term Care Insurance

As healthcare costs rise, long-term care insurance can help cover expenses for nursing homes, assisted living, or in-home care. This is especially relevant for retirees concerned about preserving assets.

Types of Insurance You Might Not Need

Not all insurance products are worth the cost. Some are often redundant, overpriced, or provide limited value:

• Extended Warranties: Typically unnecessary, as many products already come with manufacturer protection.

• Flight Insurance: Duplicates coverage often provided by life insurance and credit cards.

• Credit Card Protection Insurance: Expensive for the benefits provided; most credit card companies already cover fraudulent activity.

• Pet Insurance: Useful in some cases, but often better to build a savings fund for pet-related expenses.

• Mortgage Insurance (PMI): Instead of relying on private mortgage insurance, building a larger down payment may be more cost-effective.

The Bottom Line

Insurance isn’t just about policies—it’s about protecting your financial security. By reviewing your coverage annually and after major life events, you’ll ensure your protection keeps pace with your changing needs. Focus on the core policies that protect health, income, property, and family. Be cautious with add-ons and niche products that may offer little real value.

A well-structured insurance plan is one of the cornerstones of long-term financial health.

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Rigden Capital Strategies was founded on a simple belief: financial advice should be personal, transparent, and centered around your goals—not built on generic models or product-driven sales. With decades of combined industry experience, we’ve developed a process grounded in three core values: value, integrity, and progress.

As a fee-only fiduciary, we provide personalized, goals-based wealth planning services designed to adapt with your life. Our services include investment management, retirement and tax planning, and estate coordination. We use a mix of active and passive strategies to help clients navigate market changes with clarity and confidence.

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Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.