Life changes quickly, but does your insurance coverage keep up? Many people set up insurance policies once and forget about them, creating dangerous gaps in protection that only become apparent when it’s too late.
At Trent Advisors, we’ve seen firsthand how life’s major milestones can dramatically alter insurance needs. That’s why we recommend regular reviews of your coverage—especially when significant life events occur.
Why Insurance Reviews Matter
Insurance isn’t static because life isn’t static. Your policies should evolve as your life changes. Without regular reviews, you might be:
- Paying for coverage you no longer need
- Missing protection for new assets or responsibilities
- Carrying inadequate limits that leave you exposed
- Missing opportunities to save money or improve benefits
Most importantly, failing to update your insurance after major life changes could leave you and your loved ones vulnerable precisely when protection matters most.
According to a 2024 insurance industry study, more than 65% of Americans have insurance coverage gaps they’re unaware of, with an average potential financial exposure of over $425,000 per household. These gaps often emerge after significant life transitions when policies aren’t properly reviewed and updated.
Let’s explore the seven critical life events that should always trigger a comprehensive insurance review.
1. Marriage or Divorce
Getting married or divorced represents one of the most significant transitions in life, bringing major changes to your financial situation, assets, and responsibilities.
When You Get Married
When you tie the knot, you’re not just joining lives—you’re joining finances, belongings, and often, insurance needs. Consider these insurance implications:
- Health Insurance: Compare both spouses’ plans to determine if maintaining separate coverage or adding a spouse to one policy makes more financial sense.
- Auto Insurance: Most carriers offer multi-car discounts, potentially saving you 10-25%. Additionally, married drivers often qualify for lower rates.
- Homeowners/Renters Insurance: You’ll need to update your policy to protect both spouses’ belongings and possibly increase coverage limits to accommodate combined possessions.
- Life Insurance: Marriage often creates financial interdependence, making life insurance essential to protect your spouse if something happens to you.
“When clients get married, we recommend a full policy review within 60 days,” explains Michael Thompson, Senior Insurance Advisor at Trent Advisors. “We often find opportunities to consolidate coverage, increase protection, and even save money through multi-policy discounts.”
During Divorce
Divorce necessitates a complete insurance overhaul to ensure proper coverage while untangling joint policies:
- Health Insurance: If you were covered under your spouse’s plan, you’ll need to secure new coverage, possibly through COBRA, an individual policy, or employer-provided insurance.
- Life Insurance: Update beneficiary designations and reassess coverage amounts based on alimony, child support, or other financial obligations.
- Home and Auto Insurance: Policies will need to be separated and adjusted to reflect new living arrangements and vehicle ownership.
Learn more about our comprehensive insurance review process
2. Welcoming a New Child
Whether through birth or adoption, adding a child to your family creates a lifetime of joy—and responsibility. Your insurance needs change significantly when you become a parent.
Health Insurance Considerations
You’ll have 30 days after birth or adoption to add your child to your health insurance policy. Missing this special enrollment period could leave your child uninsured until the next open enrollment.
Additionally, review your policy’s pediatric coverage, including well-baby visits, immunizations, and emergency care provisions.
Life Insurance Becomes Essential
If you don’t have life insurance—or have minimal coverage—a new child makes it absolutely critical. Consider:
- Income replacement: Experts typically recommend 10-15 times your annual income in life insurance coverage when you have dependent children.
- Stay-at-home parents: Even non-working parents need substantial life insurance to cover childcare, household management, and other services they provide.
- College funding: Life insurance can help ensure your child’s education plans remain intact even if you’re not there.
“New parents often underestimate the financial impact of raising children,” notes Jennifer Williams, Life Insurance Specialist at Trent Advisors. “We recommend reviewing not just the amount of life insurance but also the type of policy that best aligns with your long-term financial goals for your family.”
Disability Insurance Gains Importance
Your ability to earn an income becomes even more crucial when children depend on you. Disability insurance provides replacement income if you become unable to work due to illness or injury—protection that becomes non-negotiable when you have children.
Explore our family-focused life insurance options
3. Buying or Selling a Home
Your home is likely your largest asset, making proper insurance protection absolutely essential. Any change in homeownership should trigger an immediate insurance review.
When Purchasing a Home
Before closing on a new home, you’ll need:
- Homeowners Insurance: Your mortgage lender will require this, but don’t just meet the minimum requirements. Ensure you have adequate coverage for:
- Dwelling replacement cost (not just market value)
- Personal property
- Liability protection
- Additional living expenses if displaced by a covered loss
- Flood Insurance: Standard homeowners policies don’t cover flood damage. If your home is in or near a flood zone, separate flood insurance is crucial.
- Umbrella Insurance: Consider adding umbrella coverage for additional liability protection, especially if your home has “attractive nuisances” like a pool, trampoline, or other features that increase liability risk.
When Selling or Downsizing
If you’re moving to a new home, you’ll need new coverage tailored to that property. If you’re transitioning to a rental property, you’ll need to switch from homeowners to renters insurance.
Don’t cancel your old policy until you’ve fully moved out—maintaining continuous coverage is essential for protecting your belongings during the transition.
“The biggest mistake we see with home purchases is focusing solely on getting the required insurance without considering optimal protection levels,” explains Robert Johnson, Property Insurance Specialist. “Taking time for a proper coverage analysis can mean the difference between full recovery and financial devastation after a major loss.”
Learn about our comprehensive homeowners insurance options
4. Career Changes and Retirement
Your professional life and insurance needs are deeply interconnected. Job changes, promotions, self-employment transitions, and retirement all necessitate insurance reviews.
New Job or Career Change
When changing employers, carefully evaluate:
- Health Insurance: Compare your new employer’s plan with your current coverage. Consider coverage networks, deductibles, out-of-pocket maximums, and premium costs.
- Life and Disability Insurance: Employer-provided coverage often ends when you leave a job. Determine if you need individual policies to maintain adequate protection.
- Retirement Benefits: Understand how job changes affect retirement planning and associated insurance needs like long-term care coverage.
Starting a Business
Becoming self-employed creates several new insurance considerations:
- Business Insurance: You may need general liability, professional liability, business property, and other specialized coverage.
- Health Insurance: Without employer-sponsored coverage, you’ll need to secure individual health insurance or explore options through professional associations.
- Income Protection: Self-employed individuals should consider robust disability insurance since they don’t have employer-provided sick leave or short-term disability.
Approaching Retirement
As retirement nears, your insurance landscape changes dramatically:
- Medicare Planning: Understanding Medicare options becomes critical as you approach age 65.
- Long-Term Care Insurance: This coverage becomes increasingly important to protect retirement assets from potentially devastating care costs.
- Life Insurance Review: Reassess whether your life insurance needs have changed as dependents become self-sufficient and financial obligations evolve.
“The transition to retirement brings complex insurance decisions, particularly around Medicare,” notes Sarah Thompson, Medicare Specialist at Trent Advisors. “We recommend beginning your Medicare planning at least a year before retirement to ensure a smooth transition without coverage gaps.”
Discover our Medicare planning services
5. Significant Health Changes
Health conditions don’t just affect your wellbeing—they impact your insurance needs across multiple coverage types.
New Medical Diagnoses
When you or a family member receives a significant diagnosis:
- Health Insurance: Review your current plan’s coverage for specialists, medications, and treatments related to the condition. Consider whether a different plan might better meet your new healthcare needs.
- Disability Insurance: A new diagnosis might affect your insurability for disability coverage, making it important to review existing policies and explore guaranteed renewable options.
- Life Insurance: Similarly, health changes can impact life insurance eligibility and rates, potentially making it advisable to review coverage before health conditions progress.
Managing Chronic Conditions
For ongoing health issues:
- Prescription Drug Coverage: Review your health insurance or Medicare Part D plan to ensure optimal coverage for necessary medications.
- Supplemental Insurance: Consider whether products like critical illness insurance, hospital indemnity coverage, or cancer policies might provide valuable additional protection.
“After a serious diagnosis, insurance is probably the last thing on your mind, but it’s precisely when expert guidance becomes most valuable,” explains Thomas Reynolds, Health Insurance Specialist. “We help clients navigate their options during these difficult times to ensure their coverage supports their medical needs while protecting their financial health.”
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6. Empty Nest or Boomerang Kids
When children leave home—or return unexpectedly—your insurance needs can change significantly.
When Children Leave Home
As your nest empties:
- Auto Insurance: If your child no longer drives your vehicles, you may qualify for rate reductions. However, consider whether they need coverage while away at college or if they’ve permanently moved out.
- Homeowners Insurance: Personal property coverage might be adjusted as household contents decrease. However, you may need to extend coverage for children’s belongings at college dormitories.
- Life Insurance: Reassess whether your coverage amount still aligns with your financial obligations as dependents become self-sufficient.
When Adult Children Return Home
If adult children move back in:
- Liability Coverage: Consider increasing personal liability limits, as household activity and associated risks may increase.
- Auto Insurance: Policies may need adjustment if adult children bring vehicles or drive family cars.
- Renters Insurance: Encourage adult children to maintain their own renters policies, even while living at home, to cover their personal belongings.
“Insurance needs don’t necessarily decrease when children leave home,” notes William Davis, Personal Lines Specialist. “Often, they just change form, particularly as parents begin focusing more on retirement preparation and legacy planning.”
7. Estate Planning and Inheritance
Estate planning milestones and receiving an inheritance should always trigger insurance reviews.
Creating or Updating Estate Plans
When establishing wills, trusts, or other estate planning tools:
- Life Insurance: Often plays a crucial role in estate planning, providing liquidity for taxes, equalizing inheritances among heirs, or funding trusts.
- Long-Term Care Insurance: Can help preserve assets intended for heirs by covering potentially expensive long-term care costs.
- Liability Protection: May need enhancement through umbrella policies to protect assets designated for heirs.
Receiving an Inheritance
After inheriting assets:
- Property Insurance: May need adjustment to cover inherited valuables, art, jewelry, or collectibles.
- Investment Protection: Consider whether additional liability coverage is needed as net worth increases.
- New Property Coverage: Inherited real estate requires appropriate homeowners, landlord, or vacation home policies.
“We often see clients who’ve done careful estate planning but overlooked how insurance fits into their legacy goals,” says Elizabeth Johnson, Estate Planning Specialist. “The right insurance strategy can be the difference between your wishes being fulfilled or your heirs facing unexpected financial burdens.”
The Insurance Review Process: What to Expect
When life changes trigger insurance needs, a structured review process helps ensure comprehensive protection. Here’s what an effective insurance review looks like:
1. Identify Changes
Begin by documenting all relevant life changes and how they affect your financial situation, assets, liabilities, and responsibilities.
2. Gather Information
Collect all current insurance policies, including coverage details, premiums, deductibles, and exclusions.
3. Analyze Coverage
Review existing policies against your current needs to identify gaps, redundancies, or opportunities for improvement.
4. Update Strategy
Implement necessary changes to align your insurance portfolio with your current situation and future goals.
At Trent Advisors, we conduct thorough insurance reviews using a holistic approach that considers not just individual policies but how your entire protection strategy works together.
Taking Action: Your Next Steps
Life doesn’t stand still, and neither should your insurance coverage. If you’ve experienced any of these seven life events—or it’s been more than two years since your last comprehensive insurance review—now is the time to act.
Our independent advisors at Trent Advisors offer objective guidance to help you navigate insurance decisions during life transitions. We work with multiple insurance carriers to find solutions that meet your unique needs and budget.
Contact us today to schedule your personalized insurance review. Our team will help ensure your protection keeps pace with your changing life, giving you confidence that you and your loved ones remain properly protected through every life stage.
Disclaimer: This article is for informational purposes only and is not intended to provide specific insurance advice. The information provided is general in nature and should not be considered legal or insurance advice. Every individual’s situation is unique, and regulations may vary by state. For advice specific to your circumstances, please consult with a licensed insurance professional. Trent Advisors and its representatives do not provide tax or legal advice. Please consult with your tax professional or attorney regarding these matters.