February Insurance Maintenance: Tuning Up Your Coverage to Fit Your Needs
Having insurance is often not a “one size fits all” situation. Good insurance should work for your needs and lessen the burden of large costs.
This isn’t always the case for many Americans. Nearly 1 in 4 of U.S. working-age adults with health insurance were considered underinsured, according to a recent survey. This means facing high out-of-pocket costs and deductibles, making it hard to afford necessary care.
February is an ideal moment to pause and review not just health insurance, but all insurance policies that protect your home, vehicle, and long-term financial security. Coverage that once felt appropriate may no longer match your current needs, especially if you experienced life changes in recent years.
“It’s good ‘insurance hygiene’ to review your plans regularly. It helps you stay protected, avoid gaps, and ensure that your coverage continues to support your financial goals,” says Darren Nomberg, Senior Vice President, Investments at David Lerner Associates, Inc.
Why an Annual Insurance Review Matters
Insurance policies are not meant to be set aside once purchased. Your coverage should adjust as your life changes.
Have you…
- Purchased a new car?
- Moved or renovated your home?
- Welcomed a child or grandchild?
- Experienced changes in your health?
These events may affect the types and levels of protection you need. Even without major life changes, inflation and rising repair costs can influence whether your policy limits remain adequate.
You strengthen your financial well-being when you check your coverage regularly. It gives you the chance to catch outdated information, correct lapsed or duplicated policies, and confirm that your beneficiaries and deductibles reflect your current preferences. A routine review also helps you estimate future costs so that you can plan ahead with confidence.
Reviewing Home and Auto Insurance
Your home and vehicle are central to your daily life, so it makes sense to start your review with these policies. Look at whether your homeowner’s insurance still reflects the current replacement value of your property. Construction costs have changed over the past few years, which means an older policy may no longer offer enough coverage to rebuild or repair after a loss.
Auto insurance should be reviewed with a similar level of detail. If you switched vehicles, relocated, or changed how often you drive, your policy may need adjustments. You may also want to check whether your deductible and liability limits are appropriate for your budget and risk tolerance.
It is also useful to look for discounts you may now qualify for. Improved home security, safe-driving records, or bundling policies can reduce your overall premiums.
Reassessing Life and Health Insurance
According to a 2024 Insurance Barometer study, 4 in 10 middle-income Americans (or 50 million adults) acknowledge they live with a life insurance coverage gap.
Life insurance is designed to protect the people who depend on you. Reviewing your policy once a year ensures your coverage still aligns with your long-term goals. If you welcomed new family members, paid off debt, or retired recently, you may want to update the amount of coverage or review your beneficiaries.
Health insurance also deserves a second look, especially if your medical needs changed. Reviewing your deductible, prescription coverage, and out-of-pocket maximums can help you understand what you might spend this year. Checking whether your doctors and specialists remain in-network can also prevent unexpected bills.
For retirees, evaluating supplemental coverage and prescription drug plans can help you make sure your coverage matches your current health conditions and budget.
Coordinate Your Protection Strategy
Insurance plays an important role in supporting long-term financial stability. Your coverage decisions should work together with your investment strategy so that you can protect your assets, manage risk, and prepare for future expenses.
An investment counselor can help you look at how your policies complement your other financial goals and suggest changes that support your overall plan. A comprehensive approach ensures that you maintain a balance between affordability and protection, especially as your needs change throughout life.
Insurance reviews may not feel urgent, but they can make a meaningful difference in how well you protect yourself and your family. A February checkup gives you the chance to update outdated information, adjust your coverage, and confirm that your policies remain aligned with your financial goals.
If you have not reviewed your insurance policies recently, now is the time to take a fresh look. Schedule a conversation with an investment counselor at David Lerner Associates to ensure your coverage matches your current needs and supports your long-term goals.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.