Why You Should Do an Insurance Protection Assessment Periodically

Why You Should Do an Insurance Protection Assessment Periodically - One of the most flexible forms of protection, insurance can be tailored to the needs of everyone. A person's needs can change over time.

Therefore, when someone starts buying insurance, they should understand the importance of periodic evaluations of their insurance policies to maximize their benefits throughout their lifetime.

Everyone's insurance needs must be different depending on their circumstances. The needs of a single person are not the same as those of a married person, let alone children. A first-time employee is not equal to an entrepreneur, manager, or career peak.

In addition to being performed when life stages change, an insurance policy assessment should be performed at least once a year to ensure that the benefits listed in the policy are still relevant to the most recent insured's protection and risk plan.

Generally, periodic evaluation of insurance protection has four main advantages for policyholders.

The first benefit is to continue to protect according to the required needs. Each person will have different needs, such as some of the following examples:

When marital status changes, whether from single to married or otherwise divorced, the need for protection will change, and this need can increase or decrease.

From marriage without children to having children, there will be more needs beyond childcare, like education and health plans.

Financial governance will change drastically when a family member dies, especially if the primary livelihoods are lost.

A person in the single phase may experience an imbalanced lifestyle between working time and rest due to a very dense working environment, where they often work longer than fixed working hours and ignore rest times.

It is possible to change a lifestyle due to increased earnings as a career progresses to a more established level. Ultimately, this will result in a better ratio between your risk profile and your ability to pay premiums.

The need for a Life Insurance Deposit (UP) will increase as the family's financial risk rises due to the change in status from employee to employer, almost like career advancement.

The second significant benefit is to help avoid the risk of a policy lapse, i.e., when the suspension of insurance stops paying premiums and policy fees that are due because the remaining cash value is insufficient to pay it again or because the policyholder risks late payments, which can cause the policy to lapse.

In addition, the third significant advantage is the ability to keep in mind claims terms, revitalize claims conditions, and eliminate the benefits listed in insurance policies. This phase helps speed up the process for policyholders as they make claims in the future.

Furthermore, the fourth advantage is that reading the insurance benefits back can be a good time for the policyholder to change the insurance value. For example, the policyholder can change the essential insurance benefits and additional liabilities.

Now, it's clear why a routine insurance assessment is so critical. However, choosing an insurance company is also very important because it has the necessary credibility.

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