When your world shifts - a new marriage, a baby, or a major move - your insurance needs change too. But how do you find out if you need to update your policies?
Insurance Policy Reviews After Major Life Events: What Are Qualifying Life Events?
Qualifying Life Events (QLEs) are big changes that can make you eligible for a Special Enrollment Period (SEP). This is a time outside the normal enrollment window to switch or sign up for insurance. You can get an SEP after a divorce, a new kid, or a move to a different zip code. Losing your job and coverage also qualifies.
What Should You Do After a QLE?
Check all your insurance: health - auto, life, and homeowner. You might be due for a review or even a change. For example, if you got married, you might now qualify for your spouse's employer health plan. Or maybe you should update your beneficiaries on your life insurance policy.
Homeowners Insurance Changes Due to Climate Change
The rising seas - hotter summers, and more intense storms of climate change have sent homeowner premiums through the roof. Since 2020, premiums have risen by 30%, and the damage estimates are even higher. Homeowners face steeper deductibles and coverage caps.
Some homeowners find that their insurance no longer covers the full replacement value of their homes. That means if a hurricane rips your house apart, the payout might not be enough to rebuild. If you've had your policy for a while - it's time to look at the fine print and see if you're still fully covered.
If you live in a high-risk area, you could end up paying more to insurers because of climate change. Some carriers are now offering discounts for energy-efficient upgrades, like solar panels, and green roofs. That's a good incentive to go green, but it won't lower your premium by much.
Insurers have also started raising rates for homeowners in flood-prone areas. Some companies are pulling out of those markets altogether. It's best to ask your agent or broker about how climate change might affect your premiums. They can help you understand your risks and what steps you can take to minimize them.
Auto Insurance After a Move
If you move to a new city or state - you'll need to get a new policy in your new zip code. Your old coverage probably won't follow you. And it's likely that rates will be different there.
Your agent can shop around and find you the best rate. Or you can compare quotes yourself online. But make sure to update your coverage with the new insurer. You don't want to be driving without the right insurance.
Life Insurance Changes When a Family Member Dies
Death is hard enough without having to worry about insurance. But you should review your policies to make sure your family is still protected.
For starters, you'll want to contact your agent to file a claim. Then you can start looking at what you have left behind.
If you were the main breadwinner, your family may be entitled to survivor benefits through Social Security. Those can be combined with a life insurance payout. So you may not need as much coverage as you thought.
On the other hand, if you were the stay-at-home parent, your family may need more coverage now. With one less income - you may need to increase your term life insurance to make ends meet.
You should also check to see if your employer offers any group life insurance. You may be able to buy additional coverage through your workplace. That could be a cheaper option than buying a separate policy.
Health Insurance After Losing Coverage
If you lose your job, you may be eligible for COBRA, which lets you stay on your former employer's plan. But it's usually expensive and only lasts for 18 months.
You can also shop for an individual plan on the Affordable Care Act exchanges. You may be eligible for subsidies to lower the cost.
If you're a student, you may be able to stay on your parents' plan until age 26. But you'll have to leave your plan if you get married or pregnant. You may also have to leave if you get a job that offers coverage.
Final Thoughts
A QLE is a turning point for your insurance portfolio. Don't ignore it. Take advantage of it to make sure you have the right coverage for your new situation.
Disclaimer
This article is for general information only and isn't financial advice. Consider speaking with a licensed advisor about your own situation before making decisions.
