How often should policyholders review their insurance coverage?

Policyholders should review their insurance coverage annually or when significant life changes occur to ensure that their policies adequately meet their current needs. Regular reviews are essential because life circumstances can change dramatically—such as marriage, the birth of a child, purchasing a home, or shifting income levels—all of which may necessitate adjustments to insurance coverage.

An annual review allows policyholders to assess their existing coverage limits, premiums, and policy features, ensuring that they are not over-insured or under-insured. It also provides an opportunity to explore new coverage options or discounts that may have become available.

In contrast, other suggested intervals for reviewing insurance coverage, such as every five years or every month, are either too infrequent or too frequent, potentially leading to gaps in coverage or unnecessary expenses. Additionally, only reviewing coverage when a claim is made does not allow for proactive management of insurance needs and could leave a policyholder exposed to risks that have developed since their last review.