Most of us buy insurance in this order; auto insurance, renters’ insurance, home insurance, and then life insurance. However, many of us do not think about how the events in our lives may affect our need for different kinds of insurance. As your life changes, the need to protect your life, investment, and family also changes.
Here are some major life events that will affect your need for personal insurance
- College -- If you have a child heading off to college, you may need to update your auto and home insurance. If your child has a car, the rates may be less in the city of the college. You will need to notify your insurer regarding the new location. In addition, if your child is renting, you may need to provide renters’ insurance to the property owner.
- Retirement – If you had commuted regularly to your job, your mileage has likely plummeted in retirement. If so, you should report it to your auto insurer to significantly lower the cost of your auto insurance premiums. In addition, you will need to consider other insurance options.
- Marriage or Divorce -- Changes in marital status, or even just moving in together, means the combining of households, cars, and other property, so you’ll want to update your insurance policies accordingly. Are you both protected? Are coverage limits adequate?
- Having a baby -- When your family grows, you may want to consider life insurance to protect your loved ones. Life insurance can provide the financial security for many years, and give you peace of mind.
- Moving -- Whenever you move, you will need to update your auto and home insurance. New addresses may actually lead to lower costs.
- Home Renovations – If you have made major improvements to your home, such as adding a new room, enclosing a porch, or expanding a kitchen or bathroom, report those changes to your insurance company.