A lot can change in a year—marriage, a new baby, a job change, or even home upgrades. These may affect your life, home, and auto insurance. A yearly check helps make sure everything still lines up with how you live now. It’s a good opportunity to explore life insurance upgrade options, fix outdated details, and look for discounts that could save you money in your policies.
Car Insurance
Your Driving Habits Have Changed
If you’ve switched jobs, started working from home, or simply drive less than you used to, you’re likely eligible for lower premiums. Many insurers offer low-mileage discounts or usage-based programs that reward reduced driving. On the other hand, if you’ve started using your vehicle for deliveries or ridesharing, you might need to add or adjust coverage. Not updating your policy could result in denied claims if your car is being used in a way your insurer didn’t agree to cover.
Your Vehicle Has Changed in Value
As your car ages, its market value decreases. That means collision or comprehensive coverage might not be worth what you’re paying for it. If you recently added features like winter tires, an anti-theft system, or advanced safety technology, you may be eligible for new discounts. An annual review keeps your policy aligned with the true value and condition of your vehicle.
Policy Errors and Auto-Renewal Surprises
If you’re enrolled in auto-renewal, it’s easy to miss changes in your premium or policy terms. Your insurer might quietly adjust rates based on regional claims data, vehicle rate groups, or even internal reclassifications. You might also have outdated information on your policy, like an old address, a child who’s moved out still listed as a driver, or a vehicle you no longer own that is still being insured. That means you could be paying for coverage you no longer need.
Home Insurance
Renovations and Upgrades
Finished a basement? Did you add a new bathroom or upgrade your kitchen? Even minor upgrades like installing custom cabinetry or high-end fixtures can increase your home’s rebuild cost, but your insurer won’t know unless you update the policy. If your coverage doesn’t reflect the current value of your home improvements, you may be left short in the event of a claim.
New Items Worth Insuring Separately
Many people acquire valuable items throughout the year, such as art, jewellery, collectibles, or expensive electronics, without thinking about whether they’re fully covered. Most standard policies have limits for certain categories, and high-value items often require a rider or scheduled endorsement. A review helps you account for new purchases.
Home-Based Business or Side Hustle
Running a small business or freelance gig from home? A baking operation, a photography studio, or consulting service can all fall outside the protection of a standard home insurance policy, which often excludes business-related liabilities and equipment. If you’ve started earning income from home, a policy review lets you assess if your current coverage still applies or if it’s time to add business protection.
Life Insurance
Future-Proofing Your Coverage
What was “just right” a few years ago may no longer be adequate. Marriage, a new baby, a bigger mortgage—life adds layers. If your coverage hasn’t grown with your responsibilities, your family might end up short. Check whether your coverage factors in inflation. What seemed like a generous benefit might not stretch far in today’s economy. Some policies offer automatic inflation indexing, but not all. If yours doesn’t, you may need to manually adjust the coverage upward to reflect the cost of living.
Outdated Beneficiaries
People change, and so do relationships. If your policy still names an ex, a distant relative, or no one at all, it could cause problems later. If there’s no named beneficiary, the death benefit goes into your estate, where it can get tied up in probate and possibly taxed. Keeping beneficiaries current is quick, easy, and avoids unnecessary delays. One thing many forget is to check contingent beneficiaries—those who receive the payout if your primary beneficiary is no longer alive. If those backup names are outdated, your policy might still end up going through probate.
Missing Out on Important Riders
Riders are add-ons that let you customize your life insurance, but many people overlook them. Options like critical illness, disability, or child coverage aren’t automatic—you have to ask for them. Others, like return-of-premium or waiver-of-premium riders, can refund your payments if certain conditions are met. A policy review helps you see what’s already in place, what might be missing, and whether it makes sense to add extra protection.
Paying More Than You Should
Life insurance premiums are often fixed, but certain conditions can make them eligible for adjustment. Policies issued with a health loading—due to a medical condition, smoking status, or high-risk job—often come with higher rates. If your situation has improved, you could qualify for lower premiums. A yearly policy review is the best time to check whether your premiums still reflect who you are today.
Changes in Employment Benefits
If your life insurance is part of your workplace benefits, be aware of where it falls short. Most group plans cover a fixed amount, often one or two times your salary, which may not be enough to support your family long-term. This coverage usually ends when you leave your job, and while some plans offer a conversion option, it’s often limited, time-sensitive, and more expensive. Reviewing your policy each year helps you decide whether your employer coverage is still enough or if you need personal insurance to cover the gaps.
Flexible Policies Need Ongoing Attention
Term life and whole life insurance are straightforward, with premiums that typically remain fixed for the duration of the policy. Universal life insurance is different. It gives you more flexibility, but that also means more responsibility. You can choose how much to pay (within limits), and part of your premium goes into an investment account. If those investments don’t perform well, or if you’ve only been paying the minimum, the cash value can slowly drain. As that happens, the cost of keeping the policy going rises in the background. If the cash runs out and you don’t catch it in time, you may be asked to make a large payment just to keep it active.
Policy Loans Can Spiral Out of Control
Permanent life insurance can build up cash value, which can be borrowed against. But if you don’t keep an eye on the loan, the balance and interest can quietly grow and reduce the value of your policy. Over time, this can put the coverage at risk or even cause it to lapse if the loan drains too much from the policy. Many people don’t realize that any unpaid loan reduces the death benefit directly, which could leave your family with far less than expected.
Avoid Tax Risks
Think of your permanent life insurance policy as having a tax-sheltered savings component. When you access this cash value through a loan or by cashing out the policy, the government will tax any amount you receive beyond what you’ve contributed (your Adjusted Cost Basis or ACB). If the policy lapses with a loan still unpaid, the tax still applies. For business-owned policies, the rules are more complex. The death benefit is only tax-free to shareholders if it’s properly recorded through the Capital Dividend Account (CDA). If the CDA isn’t handled correctly, some or all of the payout could become taxable. Regular reviews help you track policy performance and catch tax risks early.
For over 40 years, Keller & Associates Insurance Brokers has helped individuals and businesses across the Niagara Region find coverage that fits. Whether it’s Life, Auto, Home, or Business insurance, our experienced team offers tailored advice and reliable support. Call 905-687-9300 to speak with a broker who puts your needs first.