12/22/2023

The end of the year is an opportunity to prepare for the upcoming new year. Those with a head start often find it easy to stay ahead of the game.

This is especially true when it comes to your financial health and your insurance coverage. A thorough financial review at the end of the year doesn’t have to be time-consuming, but it can set you up for a more peaceful and stress-free new year.

In this article, we will reveal how to assess your insurance needs in Rio Grande Valley in a few easy steps.

What Do You Need Coverage For?

First things first: You need to know what you’re insuring. There are different insurance policies, each designed for specific coverage. For example, you can choose everything from life insurance to auto insurance, health insurance to homeowners insurance. At the end of the year, take the time to evaluate your insurance options, and which ones you need for the upcoming year.

Here is a rundown of various insurance types and who may need them in 2024.

Health Insurance

• Purpose:  Health insurance shields you from the financial impacts of medical bills.
• Suitable for: Everyone! But especially those prone to unexpected trips to the doctor or anyone keen on preventive care.

Life Insurance

• Purpose: Ensures your loved ones are financially secure if you pass away.
• Suitable for: Breadwinners and anyone with dependents.

Auto Insurance

• Purpose: Protect you from the financial impacts of incidents involving your vehicle (s), including non-accident events such as theft or vandalism.
• Suitable for: Every driver on the road. Accidents happen, and you want enough coverage to pay for any bills related to injuries, property damage or vehicular damage involving your vehicle. a superhero to swoop in and take care of the damages.

Homeowners/Renters Insurance

• Purpose: Protects your castle (or humble abode) from disasters like fires, theft, or bad weather.
• Suitable for: Homeowners and renters alike. Even if you don’t own the place, your belongings deserve protection.

 Pet Insurance

• Purpose: Ensures your furry friends get the best care without forcing you to overextend yourself financially.
• Suitable for: Pet owners who want their furry friends to have a health safety net, too.

Business Insurance

• Purpose: Safeguards your enterprise from various risks – from property damage to legal woes.
• Suitable for: Business owners, big or small.

However, don’t take the definition as absolute. Within each type, there are various options available.

For example, within life insurance, you have term life insurance and permanent life insurance. Term life is the coverage for a specific period. And permanent life insurance, as per the definition, is coverage for life.

So, as you head into 2024, identify the new items on your to-do wish list. Do you plan to get a dog? You may want to think about pet insurance. Have you added a new member to your family? Expanding health insurance coverage or adding life insurance could protect your loved one.

Before the new year, evaluate your needs and seek the appropriate policy.

Calculate the Coverage

The next step is to calculate the coverage you will need in your insurance policy.

Calculating coverage is like figuring out the right suit size for your body. You want it snug but not too tight. Let’s break it down using health insurance as an example:

Evaluate Your Medical History

Look back at your medical past. Are you the picture of health, or do you have a history of medical struggles? Consider your health risks and the likelihood of needing medical care. Also assess the medical histories of all of your family members. New diagnoses, for example, may mean you need to expand your coverage.

Assess Your Lifestyle

Consider your current lifestyle. Do you participate in extreme sports or prefer the calm of a good book? Risky activities might warrant more coverage.

Factor in Family

If you have a family, factor in their health needs. Kids, for instance, might need more frequent doctor visits. Family coverage should fulfill the needs of everyone in your family.

Account for Future Plans

Think about your future. Are you planning to add children to your family? Consider coverage that accommodates the expansion of your clan.

Check Your Budget

Assess your budget. While we would all love the prefect health insurance plan, the one you purchase should be realistic for your financial capabilities. Ensure that the premium is something you can handle without financial distress. Here at SafeGuard, we work hard to get you the right coverage within your financial limitations, and snag you all the discounts for which you are eligible so you do not have to compromise on the plan you get.

Consider Deductibles and Copays

Take note of deductibles and copayments. These are the amounts you pay out of pocket. Usually, the higher your deductible or copays, the lower your premium. However, you need to strike a balance between the cost of your premiums and out of pocket costs that fit within your financial comfort level. Our experienced agents can help!

Review Network Coverage

Check the provider network for your insurance company. Ensure that your preferred healthcare providers are included in your insurance network. You do not want to face high medical bills because your insurance does not cover the providers you use.

Think About Out-of-Pocket Maximums

Examine out-of-pocket maximums. This is the maximum amount you’ll have to pay in a given year. Find a cap that will not threaten your financial health.

Please note that coverage also affects cost, which is the monthly premium you pay. Thus, it’s recommended not to include coverage for things you wouldn’t need. To balance cost and coverage, it’s recommended to consult an insurance agency.

Fill Gaps by Adjusting Coverage

For first-timers without coverage, the task is simple: Get the coverage you need. This also applies to people who never held a particular type of insurance but now need it. So, talk with an insurance agency to find the right policy.

Those already enrolled in a policy may find that there are gaps in their coverage that they need to fill in the New Year. This means upgrading the policy to match your needs. Remember, coverage can be changed. For example, raise the coverage amounts on your auto insurance, add a new baby to your health insurance policy, or seek out a new homeowner’s policy that provides more robust coverage for your larger house.

Find the right insurance agency to work with in the RGV and McAllen

Last, you need to work with the right insurance agency to get the most suitable plans. Insurance is a complex landscape, and having an expert guide can save you from making costly mistakes. A good agent ensures you understand the ins and outs of your coverage options, helps you find customized solutions based on your unique needs, and works within your budget and your needs.

Given that we’re at the end of the year, you can expect such plans to be on offer. So contact Safeguard Insurance Agency, a premier insurance agency in the RGV, for your insurance needs. We look forward to working with you!