Life has likely felt like a whirlwind since the pandemic started. While adjusting to the new normal, it’s possible your insurance coverage has not been high on your radar. In reality, insurance provides downside protection, and reevaluating your coverage could be a valuable item to have on a to do list now. Here are four insurance areas to consider today.
#1: Health Insurance
This one may seem like a no-brainer. Your health insurance can protect you from sizeable, unexpected expenses due to serious illness. With new cases of COVID-19 each day, it’s important to know the terms of your insurance policy. What is your deductible? How are emergency room trips and routine check-ups covered? Is it possible to upgrade your coverage without a significant increase in premiums?
If you obtained your coverage through the workplace, but your employment was impacted by COVID-19, seek to keep unbroken coverage through COBRA or insurance obtained through the government's ACA website www.healthcare.gov.
#2: Auto Insurance
Throughout COVID-19 lockdowns and working remotely, most people have spent less time traveling and more time at home. Therefore, it is likely that your driving habits may have changed over the past year. If you’ve found yourself spending a lot less time in the car commuting or traveling, you can potentially save money on your car insurance. Report your updated mileage to your insurance provider and see if they are able to lower your premiums.
#3: Life Insurance
You may not want to think about it, but it is important to reevaluate your life insurance policies - especially amidst the pandemic. America has surpassed 500,000 COVID-related deaths, and you want to make sure that your family is taken care of should something happen to you.1
Also of note, the past year or so may have included some big life changes. You may have gotten married, divorced or had a child for example. Make sure that you are evaluating how these changes may impact your life insurance coverage needs.
#4: Identity Theft Insurance
Protecting your identity may seem like a less obvious area to look over, but COVID has caused us to spend much more time online. From online shopping to working from home, there are more opportunities for your identity to be stolen by online hackers. There are even scammers using COVID-19 to get your information. For example, they may pretend to be contact tracers or offer early access to a stimulus check. If you don’t have an identity protection strategy currently in place, now would be a good time to develop one. You could consider identity theft insurance. Additionally, you could upgrade the way you protect your passwords, such as using a subscription service that offers ultra-secure password vaults, or just writing down all your passwords and keeping that document or flash drive in a very secure, offline place.
The small amount of time it would take to close insurance gaps could pay off big in both protection from crisis and additional peace of mind. If you’re unsure whether or not to update or change your coverage, work with your fee-only financial planner or insurance broker to review your options.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.