As the year winds down, it’s a perfect time to review your insurance policies and ensure everything is in order. Life changes and shifting priorities can significantly impact your coverage needs. Here are essential steps to keep your insurance plans up-to-date and prepared for the new year.
1. Review Your Policies
Take a close look at your existing policies, including home, auto, life, health, and any specialized insurance like farm or business coverage. Ensure your coverage amounts align with your current needs and circumstances.
- Homeowners/Renters Insurance: Have you made any upgrades or added valuables to your home this year? Make sure your policy reflects these changes.
- Auto Insurance: Evaluate your coverage limits and deductibles to see if adjustments are needed, especially if your driving habits have changed.
- Life Insurance: If your family has grown or your financial situation has changed, you may need to increase your coverage or update your beneficiaries.
2. Update Beneficiaries
Life events such as marriage, divorce, or the birth of a child may require updating your beneficiary designations. Double-check your life insurance, retirement accounts, and any other policies to ensure your loved ones are properly accounted for.
3. Take Advantage of Open Enrollment
If you purchase health insurance through the marketplace or your employer, the end of the year often coincides with open enrollment periods. Review your options to ensure you’re enrolled in the best plan for your needs.
- Tip: For 2025 coverage through the Health Insurance Marketplace, you must enroll by December 15, 2024, for coverage starting January 1, 2025.
4. Assess Your Deductibles and Premiums
With the start of a new year, you may have new deductibles to meet. Analyze whether your current deductibles and premiums still align with your financial goals. If your financial situation has improved, you might consider higher deductibles for lower premiums—or vice versa.
5. Ensure Your Discounts Are Applied
Many insurers offer discounts for bundling policies, maintaining a safe driving record, or installing home safety features. Check that you’re taking full advantage of any discounts available to you.
6. Prepare for Winter Risks
If you live in an area prone to snow, ice, or freezing temperatures, now is the time to review your coverage for potential winter-related risks. Consider:
- Water damage coverage for burst pipes.
- Roadside assistance for icy road mishaps.
- Snow removal liability coverage if you own property.
7. Audit Your Business Insurance
For business owners, the end of the year is a critical time to ensure your business policies are updated. Check:
- Liability limits and property coverage.
- Workers’ compensation policies.
- Cybersecurity insurance if you handle sensitive data.
8. Schedule an Annual Review with Your Agent
Your insurance agent is your best resource for ensuring your coverage matches your needs. Schedule a year-end review to discuss changes in your life, upcoming plans, and new insurance options that might benefit you.
9. Plan Ahead for Tax Season
Many insurance-related expenses, such as health insurance premiums or business insurance costs, may have tax implications. Gather your documents now to make tax season smoother.
10. Make a Checklist for 2025
Use your year-end review to set goals and reminders for the upcoming year. Whether it’s shopping for better rates, adding new coverage, or planning annual policy reviews, staying proactive helps you stay protected.
