Annual insurance policy review guide. Learn when and how to review your coverage, update beneficiaries, and optimize your insurance portfolio.
Regular policy reviews ensure your insurance coverage remains adequate and cost-effective. Life changes require insurance adjustments to maintain proper protection.
Timing is crucial for insurance policy reviews. Regular assessments ensure your coverage evolves with your life circumstances.
A thorough policy review examines multiple components to ensure comprehensive and appropriate coverage.
Follow this systematic approach to thoroughly review your insurance coverage.
Collect all active insurance policies including life, health, motor, property, and business insurance. Review policy schedules, terms and conditions.
Document changes in income, assets, dependents, health status, and financial obligations since your last review.
Evaluate whether current coverage amounts adequately protect against potential risks. Calculate gaps between coverage and actual needs.
Examine premium amounts, deductibles, coverage limits, exclusions, beneficiaries, and renewal dates. Look for errors or outdated information.
Look for ways to reduce costs through discounts, bundling, or removing unnecessary coverage. Check for coverage gaps that need addressing.
Create an action plan for policy updates, premium negotiations, or new coverage purchases. Set reminders for follow-up tasks.
Don't settle for your current policy without exploring alternatives. Comparing options can save you money and improve coverage.
Consider switching if you find:
Making updates to your policies ensures they continue to meet your protection needs effectively.
Request coverage increases through your insurer or agent. May require additional underwriting or medical examinations for large increases.
Submit written request to reduce coverage amounts. Carefully consider long-term needs before reducing coverage.
Complete beneficiary change forms with full names, ID numbers, and percentages. Keep copies for your records.
Request additional riders like critical illness, disability, or accidental death coverage. Usually requires additional premium payment.
Notify insurer of address changes, phone numbers, email, occupation changes, or marital status updates.
Professional insurance advisors can provide valuable expertise during policy reviews and help optimize your coverage portfolio.
Represent specific insurance companies and sell their products.
Best for: Detailed information about specific insurers' products
Independent advisors who compare multiple insurers to find best options.
Best for: Comprehensive market comparison and unbiased advice
Provide holistic financial planning including insurance as part of strategy.
Best for: Integrated financial and insurance planning
Specialists who help with complex claims and disputes.
Best for: Maximizing claim settlements and resolving disputes
Understanding the costs associated with policy reviews and changes helps you budget appropriately.
Self-Review
Reviewing your own policies
Free
Insurance Agent Review
Agent-assisted policy assessment
Free
Insurance Broker Consultation
Independent broker advice and comparison
KES 5,000 - 15,000
Financial Advisor Review
Comprehensive financial and insurance planning
KES 10,000 - 50,000
Policy Update Fees
Administrative charges for policy changes
KES 500 - 2,000
Medical Examinations
Required for some coverage increases
KES 3,000 - 10,000
Claims Consultant
Professional claim assistance
5-15% of claim
Use this comprehensive checklist to ensure you don't miss any important aspects during your policy review.
Learn from these practical examples of policy reviews that identified important issues and opportunities.
Situation: Peter and Jane had their first child and hadn't reviewed insurance in 3 years.
Findings:
Actions Taken:
Result: Comprehensive family protection with manageable KES 45,000 additional annual premium.
Situation: Mary started a consulting business but still had only personal insurance.
Findings:
Actions Taken:
Result: Comprehensive business protection for KES 155,000/year, avoiding potential liability exposure.
Situation: James had insurance with multiple companies and hadn't reviewed in 5 years.
Findings:
Actions Taken:
Result: Maintained coverage while reducing annual premiums by KES 68,000 (38% savings).
Situation: Sarah retired at 62 with grown children and paid-off mortgage.
Findings:
Actions Taken:
Result: Age-appropriate coverage with net savings of KES 10,000/year and better health protection.
Conduct a comprehensive review annually, ideally before renewal dates. Additionally, review immediately after major life events such as marriage, divorce, having children, buying property, starting a business, or retirement.
Simply reviewing your policy doesn't increase premiums. However, requesting coverage increases, adding riders, or changes based on updated risk assessments (like health changes) may affect premiums. Many reviews actually identify opportunities to reduce costs.
Yes, you can switch insurers, but consider timing carefully. Some policies have surrender charges or waiting periods with new insurers. Generally, it's best to switch at renewal to avoid penalties. For life insurance, ensure new coverage is approved before cancelling existing policies.
Gather all policy documents, premium payment receipts, recent financial statements, asset valuations, and documentation of life changes (marriage certificate, birth certificates, property documents). Also have beneficiary information and your current budget ready.
For life insurance, coverage should be 7-10 times your annual income or enough to cover debts plus 5-10 years of income replacement. For property, coverage should match replacement cost (not market value). Health insurance should cover expected medical expenses plus emergency care. Consider working with an advisor for personalized assessment.
Yes, always disclose pre-existing conditions honestly. Non-disclosure can lead to claim rejection. Many insurers offer coverage for pre-existing conditions after waiting periods or with specific riders. Honest disclosure protects your rights during claims.
Yes, especially at renewal time. Show competitive quotes from other insurers, highlight your claim-free history, ask about available discounts, or offer to increase deductibles. Many insurers will match or beat competitor rates to retain customers.
Beneficiary updates typically don't affect premiums as they don't change the risk being insured. Most insurers process beneficiary changes for free or a small administrative fee (KES 500-1,000).
It depends on your situation. For complex portfolios, multiple policies, or significant assets, professional review (KES 10,000-50,000) can identify savings and gaps worth far more than the fee. Start with free reviews from agents and brokers, then consider paid advisors for complex situations.
A thorough self-review takes 3-5 hours for multiple policies. Professional reviews with an advisor typically require 1-2 hours for consultation plus advisor preparation time. Plan for 2-4 weeks total including gathering documents, consultations, getting quotes, and implementing changes.
Follow these expert recommendations to maximize the value of your insurance policy reviews.
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