How often should policyholders review their insurance policies?

Policyholders should review their insurance policies annually or after significant life changes because this practice helps ensure that the coverage remains relevant and adequate for their current situation. Insurance needs can fluctuate due to various factors, such as marriage, divorce, the birth of a child, buying or selling a home, or changes in income or employment status.

An annual review allows policyholders to reassess their coverage limits, verify their deductibles, and confirm that they have appropriate protection against risks that may not have been present when they first obtained the insurance. Additionally, it provides an opportunity to shop around for better rates or policies that might be more beneficial. Regular reviews promote awareness and help avoid potential gaps in coverage, ensuring policyholders are fully protected against unforeseen events.

Other options suggest less frequent reviews, which may miss significant changes that could leave a policyholder underinsured or overpaying for coverage that no longer suits their needs.