The process of modifying, updating, or adjusting an existing insurance policy, whether in its coverage, beneficiaries, premiums, or terms, to adapt it to the new needs of the insured.
Examples of common changes:
- Updating beneficiaries.
- Modifying the coverage amount.
- Changing address or personal information.
- Adjusting premiums or payment methods.
- Adding or removing specific coverages.
Importance:
- Ensures that the policy reflects the insured’s current situation.
- Provides adequate protection against new risks.
- Maintains the validity and effectiveness of the insurance contract.