9 Point Checklist to Review Insurance Policies

Here's a quick guide to reviewing your insurance policies:

1. Check Coverage

2. Review Policy Details

3. Look at Premiums

4. Check Deductibles

5. Update Beneficiaries

6. Understand Exclusions

7. Consider Life Changes

8. Compare Policies

9. Talk to an Expert

Why review?

Your life changes, so should your insurance. Don't risk being under-insured or overpaying.

1. Check your coverage

Start by looking at what's actually covered. This is key if your life has changed recently.

Focus on:

Life insurance: Had a baby? Got married? New mortgage? You might need more coverage. Sarah from Auckland doubled her life insurance after her first child was born.

Trauma insurance: This coverage pays out if you're diagnosed with a serious illness like cancer or heart disease. As these conditions become more common in New Zealand, it's essential to ensure you're adequately covered.

Income protection: This policy replaces a portion of your income if you're unable to work due to illness or injury. With New Zealand's high cost of living, ensuring your income protection is sufficient is key to maintaining financial security during tough times.

Health insurance: Private health insurance in New Zealand gives you quicker access to specialists and treatments. Make sure your policy covers what you need, especially as health needs change with age.

"Your insurance needs can change dramatically in just one year. A yearly review ensures you're not overpaying or underinsured", says Tim Grafton, Chief Executive of the Insurance Council of New Zealand.

2. Review policy details

After checking your coverage, it's time to dig into your policy details. This step is key to keeping your insurance current and accurate.

Here's what to look at:

Personal info: Make sure your name, address, and contact details are right. Even a small mistake could cause problems when you file a claim.

End dates: Note when your policies expire to avoid gaps in coverage.

Beneficiaries: Update this list if you've had big life changes like getting married or having a kid.

Policy limits: Check if your coverage still fits your needs.

3. Look at your premiums

In New Zealand, personal insurance premiums can increase annually due to inflation, medical advancements, or changes in your risk profile. It's crucial to keep an eye on them:

• Get quotes from multiple providers

• Look for discounts

• Consider adjusting your deductible to lower premiums, but ensure you can afford the higher out-of-pocket costs if you make a claim

How to tackle your premium review:

• Get 3+ quotes from different insurers

• Hunt for discounts (they can slash 5-25% off your bill)

• Tweak your excess (but make sure you can afford it)

Don't let your premiums creep up. A little legwork can save you big bucks.

4. Check your deductibles

Deductibles (excesses) vary depending on the type of policy. When reviewing, consider:

• Your emergency fund: Can you afford the deductible if you need to make a claim?

• Your risk tolerance: Higher deductibles mean lower premiums but more out-of-pocket costs.

• Your insurance type: For health or income protection insurance, balance deductible levels with premium savings.

  Insurance deductibles impact premiums.
  For health insurance: A low deductible ($500) means higher premiums, while a high deductible ($2,500) lowers premiums.
  
  In income protection insurance: The waiting period acts as a deductible. Shorter waiting periods (low deductible) increase premiums, while longer periods (high deductible) decrease them.
  
  The trade-off is between higher upfront costs (premiums) for lower out-of-pocket expenses when claiming, or lower premiums but higher costs when making a claim.

Bottom line: Pick a deductible that fits your budget and your ability to pay for unexpected events. Do the math and choose wisely.

5. Update beneficiaries

Your life changes. So should your beneficiaries. Here's why it's crucial:

• Beneficiary designations beat your will

• Outdated info? Hello, legal battles

• It's usually free and easy

When to review? After big life events like marriage, divorce, new kids, or deaths.

Avoid these common blunders:

1. Mistake: Not updating post-divorce = Ex might get paid

2. Not Naming minors directly = Court picks a guardian

3. Leaving it blank = Payout hits your estate, gets delayed

Want a smart move? Add a backup (contingent) beneficiary.

6. Understand what's not covered

New Zealand insurance policies often exclude certain events. For instance:

1. Pre-existing medical conditions: These may be excluded from health or income protection insurance.

2. Certain occupations: High-risk jobs may not be covered under standard policies.

Ask your insurer to explain any exclusions in detail, whether you're with Partners Life or another New Zealand provider.

7. Life Changes and Insurance

Your insurance needs change as your life does. Here's how major events can affect your coverage:

1. New Job:
   Compare your new employer's insurance options with your current coverage.
   You might need to adjust your policies.

2. Marriage:
   Review policies together:
   Update life insurance beneficiaries

   Evaluate health insurance options

3. New Home:
   Increase life insurance for mortgage coverage
   Consider disability insurance

4. Growing Family:
   Add your child to health insurance (usually within 30 days)
   Increase life insurance coverage

5. Empty Nest:
   Decrease life insurance with fewer dependents
   Put insurance savings into retirement accounts

Most insurers give you about 60 days after a major life event to make policy changes. Don't delay!

Keep your insurance agent informed about life changes. They can help adjust your coverage and might find new discounts for you.

8. Compare policies

Comparing insurance policies is key to finding better coverage or lower prices. Here's how:

1. Get multiple quotes

2. Grab quotes from at least three insurers. This gives you options.

3. Ensure consistent coverage

Compare apples to apples. Make sure each policy has the same deductibles, limits, and coverages.

• Look beyond price

• Don't just focus on cost. Check the company's reputation, customer service, and claim process too.

• Use comparison tools

Online tools can make this easier. Our quiz tool matches you with insurance advisers who can help you find the best value for money cover that suit your families budget and situation.

9. Talk to an expert

Insurance policies can be tricky. That's why chatting with an expert is often your best bet for full coverage.

Here's the scoop on consulting an insurance pro:

Why bother?

• They break down complex terms

• They give advice tailored to YOU

• They spot coverage gaps you might miss

  Make your chat count:

• Jot down questions about deductibles, premiums, and coverage

• Bring your current policies

• Think about recent life changes that could affect your insurance

A good insurance expert doesn't just sell. They help you understand your risks and find the right coverage.

Not sure about your policy? Want a full review? visit Insurance Genius. We offer free consultations to help you review your policies, spot gaps in coverage, and ensure you have the protection you need.

Conclusion

Yearly insurance reviews aren't just smart—they're essential. This 10-point checklist is your roadmap to keeping your coverage in sync with your life.

Why bother? Simple:

Your life changes fast. New house? Baby? Business? Each shift impacts your insurance needs.

Insurance evolves. You might be missing out on better deals or new perks.

Catch problems early.

Yearly checks help you spot and fix coverage gaps before they bite.

"An annual insurance review includes a needs analysis to confirm that your current coverage is sufficient for your needs and budget, and to identify any gaps in coverage." - Advanced Mortgage Solutions