Insurance policy review: Assessing life, health, and property insurance coverage

By Sarah Hodge, CFP®

Reviewing your insurance coverage on a regular basis can help you maintain your financial well-being and protect your loved ones. Life, health, and property insurance are foundational elements of a comprehensive risk management plan, but as your circumstances change, so do your insurance needs. This guide will walk you through best practices for reviewing your insurance policies, ensuring you have the right coverage at every stage of life.[1]

Why insurance policy reviews matter

Life is full of changes, and milestones, such as marriage, children, new homes, and career shifts, can influence the type and amount of insurance coverage you need. Conducting an annual insurance review helps you:

• Ensure adequate protection for your family and assets,
• Identify gaps or overlaps in coverage,
• Adjust policies to reflect current needs and risks, and
• Potentially save money by comparing rates and coverage options.

When you should review your insurance coverage

It’s important to review your insurance regularly to make sure your property, possessions, and loved ones are properly protected. This includes home or renters insurance, car insurance, and any other policies you hold.

The key times to review your coverage are when your circumstances change or a major life event occurs. Common examples include:

• Getting married,
• Having a baby,
• Divorcing,
• Losing a family member,
• Reaching milestones, like a child learning to drive, graduating, retiring, or downsizing your home,
• Professional changes, such as selling a business or moving office locations,
• Changes to your living situation, like moving, home improvements, complete remodeling, or renting out your property.

Other situations that may prompt a review include acquiring high-value possessions, upgrading your home’s safety features, or facing increased local risks, such as natural disasters. While an annual review, often at policy renewal, is recommended, you may not always need to make changes. After significant life events, consulting your insurance agent can help ensure your policies continue to meet your needs.

Life insurance review: Protecting your loved ones

Start your insurance review by gathering all your life insurance policy information and making sure your beneficiaries and trusted family members know where to find these documents. The primary question to ask as you review your materials: Do you have enough coverage?

There’s no one-size-fits-all answer; the “right” amount will vary based on your family’s lifestyle, spending needs, debt, dependents, and long-term goals. Major life events, such as marriage, having children, buying a home, or changing jobs, are common triggers for adjusting coverage needs.

Many people find that term life insurance is sufficient and affordable. Term policies typically last 10, 20, or 30 years, providing coverage during your prime earning years. As you accumulate assets, your need for life insurance may decrease. However, if you have special circumstances, such as a special-needs dependent, aging parents, or a large estate, you may require permanent insurance, like whole or universal life.

Regularly review your policies, especially after significant life changes. If your lifestyle or income increases, you may need additional coverage. Consult an estate planning attorney to determine if you should own policies individually, jointly, or through a trust.

Health insurance review: Adapting to your needs

Health insurance needs can vary greatly depending on your employment status, age, and health. Most people’s coverage falls into one of three categories:

Employer-sponsored insurance

Review your options during your employer’s annual open enrollment period, typically in the fall. Compare available plans, costs, and your family’s healthcare expenses over the past year to determine if a different plan might better suit your needs.

Individual or marketplace insurance

If you’re self-employed or your employer doesn’t offer coverage, you may purchase insurance through a state or federal marketplace. In some states, buying directly from insurers can be more cost-effective if you don’t qualify for subsidies. Review your plan annually to align it to your needs and budget.

Medicare

For those 65 and older, Medicare’s open enrollment period (October 15 to December 7) is the time to review and adjust your coverage, including prescription plans and supplemental policies.

Property and casualty insurance review: Safeguarding your assets

Property and casualty insurance includes homeowners, renters, auto, and umbrella insurance policies. Review these policies annually, especially at renewal time. An independent insurance agent can help you:

• Reprice your policies with multiple carriers to uncover potential savings,
• Ensure that your home’s replacement value is accurate,
• Check that your auto insurance limits are sufficient, especially as your assets grow,
• Assess whether you’ll need to add or update coverage for valuables, like jewelry or electronics, and
• Add an umbrella policy, if necessary.

What to do if you receive a notice of non-renewal

As climate change increases the frequency of natural disasters, some insurers are pulling out of high-risk areas. If you receive a non-renewal notice, contact an agent immediately to secure new coverage and avoid a lapse. Review your policies to ensure you’re covered for risks, like earthquakes or floods, which may require separate endorsements.

Key takeaways for your insurance review

• Conduct an insurance review annually and after major life changes.
• Keep policy documents organized and accessible to beneficiaries.
• Consult with licensed insurance professionals for tailored advice.
• Don’t let policies lapse—always have replacement coverage in place before switching insurers.

By proactively reviewing your life, health, property, and home insurance, you can ensure your coverage aligns with your goals and lifestyle, providing peace of mind for you and your loved ones. Nixon Peabody Trust Company can help integrate insurance reviews into your broader financial wellness plan, working alongside you and your insurance advisors to make sure your coverage supports your long-term goals and protects what matters most.

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1. This article is for educational purposes only and does not constitute insurance advice. Please consult with a licensed insurance agent or advisor for personalized recommendations.
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Sarah Hodge, CFP®
Trust Advisor
Office: +1 617.345.1158
shodge@nixonpeabody.com