Why You Should Review Your Health Insurance Every Year

Unexpected health issues can happen to anybody—that’s why a health insurance plan is your safety net against expensive medical costs. This protection will help cover your hospital visits and medications if you get sick.

But when purchasing health insurance plans, it’s crucial to get the best coverage that fulfills your needs. This is where an insurance policy review comes in. Some health insurance plans have renewable contracts, which means you have the chance to assess the coverage every year. With policy reviews, you can easily customize your existing plan.

In this blog, we will list the reasons why you should regularly evaluate your health insurance plan.

Changes in Lifestyle

What we eat and drink can change over time. Bad lifestyle habits like smoking, no physical activity, and lack of sleep can put you at high risk. These lifestyle changes will take a toll on your health, resulting in more expensive insurance rates. 

On the other hand, if you’re quitting smoking or starting a fitness routine, your provider might incentivize you for this. Some health insurance companies lower premiums or provide rewards for policyholders who make healthier choices.

When there are changes in your lifestyle, it is essential to evaluate whether your current plan still meets your specific needs. 

New Features and Benefits

Insurance companies often introduce new policy products and features regularly. As the insurance industry continues to evolve, reviewing your existing policy will help you adapt to these changes. Through policy reviews, you can get a better grasp of coverage or make adjustments to include new features. Otherwise, your existing policy may become outdated or no longer aligned with your goals and needs. 

These new features and riders provide opportunities to improve your existing insurance plan. If you reassess your health plan after each term, you will stay updated with the latest features that would help maximize your policy.

Changes in Your Finances

Your financial situation affects your ability to pay insurance premiums. Since your finances may change from time to time, make sure that your health insurance plan stays within the budget. 

Both an increase and decrease in your finances prompt you to review your existing policy.

If you’ve recently received a raise or job promotion, evaluate your deductibles, copayments, and coinsurance. An increased income gives you more financial flexibility to enhance your overall coverage. Likewise, reassess your health insurance needs if you’ve lost your job or had your income reduced. Consider adjusting your coverage or switching to a health plan with lower premiums.

Life-Changing Events

Major life events like marriage, the birth of your child, retirement, or divorce will have a significant impact on your financial planning. For example: starting a family means that your health coverage may need to be improved. Your marital status can affect your health insurance policy in several ways like premium rates and beneficiary designations. 

In most cases, you can combine your coverage and enroll in spousal health insurance plans. Married couples also get big discounts on not just health insurance but also whole life or term life insurance. By evaluating your existing policy, you have the option to opt for a more comprehensive and cost-effective option.

Health or Medical Conditions

A change in health condition will directly affect your insurance coverage. During insurance policy reviews, you may disclose newly developed health conditions. Your insurance companies will then reassess the risk associated with your condition and adjust the policy accordingly. When your health status changes, it can affect your insurability, premiums, and coverage limits. 

Renewal of Health Insurance Policy

The most obvious reason for an insurance policy review is when your health plan is up for renewal. During this time, the insured can check the policy terms, add or remove coverage benefits, or switch to a new plan. When reviewing your policy for renewal, always consider the best options for your current healthcare needs.

Conclusion

It is an insurance agent’s role to review policies and ensure appropriate coverage for their clients. Let our agents at Local Retirement Group guide you as you navigate the entire process. Our goal is to evaluate your healthcare needs and help you make an informed decision. From insurance policy review to the renewal process, we’ve got your back.

Reach out to us today if you have any questions or concerns.  We look forward to working with you!