Common Qualifying Life Events That Lead to Insurance Reviews

Most people understand that life insurance is designed to protect their loved ones financially in the event of their death. But what happens when your life changes and your needs for coverage change with it? Many people don’t realize that there are qualifying life events that can lead to a review (and potentially a change) in your insurance policy. 


How to Prepare for an Insurance Review

If you’re like most people, you probably don’t give much thought to your insurance coverage until you need to use it. But if you have a life change that affects your health or life in a significant way, your insurance company may require you to have a review of your policy.

Here are some common qualifying life events that could lead to an insurance review:

  • Getting married or divorced
  • Having or adopting a baby
  • Changing or losing your job
  • Moving to a new location
  • Starting or stopping smoking
  • Diagnosis of a new medical condition
  • Treatment for a chronic condition
  • Major hospitalization or surgery


Job Loss

The loss of a job is one of the most common qualifying life events that lead to insurance reviews. This is because when you lose your job, you also lose your health insurance. This can be a major problem if you have a pre-existing condition or are taking medication for a chronic illness.

If you are facing job loss, it is important to review your health insurance options as soon as possible. COBRA continuation coverage may be an option for you, but it is important to understand the costs and coverage before enrolling. You may also be eligible for Medicaid or the Children’s Health Insurance Program (CHIP).


Increase or Decrease in Family Size 

When a family experiences an increase or decrease in size, it can be a difficult time emotionally and financially. If you have experienced a recent change in your family size, you may be wondering how it will affect your insurance coverage.

Most insurance policies are based on the number of people in your household. So, if you have added a new baby to your family, you will likely need to increase your coverage. On the other hand, if you have lost a loved one or your child has gone off to college, you may be able to decrease your coverage and save money on premiums.

If you are not sure how your family size change will affect your coverage, contact your insurance agent or company. They can help you make the necessary adjustments to your policy so that you have the coverage you need at this time in your life.


Marriage or Divorce

When it comes to insurance reviews, one of the most common qualifying life events is marriage or divorce. This is because your marital status can have a significant impact on your insurance needs and coverage.

If you’re married, you may be able to get coverage through your spouse’s policy. You may also be eligible for family discounts. On the other hand, if you’re divorced, you’ll need to get your own policy and won’t be eligible for any family discounts.


Change in Health Status

Going from being a relatively healthy human to facing a long-term health issue can definitely be a reason to initiate an insurance review. However, the same goes in reverse, too. If you went from being healthy and active to sedentary and less healthy, you may want to review your insurance to ensure you have enough coverage. It is always a good idea to review your insurance any time there are major changes in the status of the health for anyone covered under your policy. 


Business Changes Could Lead to an Insurance Review

Having a business can also trigger an insurance review under the right circumstances. Making sure your business is covered during chaotic times is imperative to remain successful. Some examples of situations that should lead to an insurance review include when you’ve: 

  • Started a new business or expanded your existing business
  • Moved to a new location or added additional locations
  • Changed the type of products or services you offer
  • Added or removed employees from your business
  • Experienced a significant change in your revenue


Always Keep Your Insurance Policy Up to Date with the Events of Your Life

There are a few common qualifying life events that can lead to your insurance company conducting a review of your policy. If any of these things happen to you, it’s important to contact your insurance company as soon as possible so that they can quote you on the cost to update your policy and make sure you’re still getting the best coverage for your needs.