With household policies such as home insurance or car insurance, we’re all used to reviewing our cover on an annual basis. However, a life insurance policy can last a lot longer, potentially 20 or 30 years, and it goes without saying that over that time your lifestyle and therefore your cover requirements are likely to change in many ways. That’s why when you mark life’s important milestones, it can make good financial sense to reassess your protection needs.
Keeping your cover in line with your needs
Once you’ve taken the responsible step of putting protection policies in place, it’s easy to overlook the need to regularly review the cover that your policies provide. So, if like many of us, you took out insurance a few years ago, it makes sense to review your protection needs, especially if you experience any major changes in your circumstances. That way, you’ll ensure that the level of cover you have in place remains aligned with your needs. Overlooking the need to revisit your protection policies over time, could mean that your family simply wouldn’t have enough money to pay the mortgage or meet household bills if you were to die. Having a review is an opportunity not only to assess your current cover needs, but also to consider newer plans that might be more appropriate to your circumstances and more cost-effective.
Updating your cover as your life changes
Major life events can often signal that your cover might need updating. So, for example, if you’ve moved to a new house you may have taken on a bigger mortgage, so the sum assured, the amount of cover provided by your policy, will need to be correspondingly increased to ensure that there wouldn’t be a shortfall in the event of a claim. Starting a family can be an overwhelming experience, and so it’s understandable that parents don’t automatically think about their life insurance needs at this exciting time. However, it’s at this stage that family expenditure is likely to increase, and it’s often the time when parents should think about additional types of insurance cover.
Protection policies can provide not only a lump sum on death or the diagnosis of a critical illness, they can help provide an income for families impacted by an accident, sickness and unemployment, help parents pass their wealth on to future generations and play a major role in Inheritance Tax planning too.
Keeping your needs covered
Insurance is one of the most important financial products anyone can take out, and one of the best ways of ensuring your family is provided for financially if one of life’s unexpected and unwelcome events should happen. So, if it’s been a while since you reviewed your cover, do get in touch.
As with all insurance policies, conditions and exclusions will apply.