We often tell our clients that life insurance is not a set and forget purchase, and it’s important to review it when your life has changed. It’s easy to forget about life insurance if you’re not thinking about it regularly, so here are the main times we recommend people to review their life insurance policies to ensure your cover and beneficiaries are still relevant.
When you purchase a property, it’s important to check that your coverage amount will be enough to pay off your mortgage. This is especially important if your spouse (and perhaps children) will be left to cover expenses and mortgage payments with one less income. In the event of an unexpected death, your life insurance cover can be used to pay off your mortgage and ease the financial strain for your remaining family.
Getting married, divorced or having a baby
Significant life changes such as getting married, divorced or having a baby are a good time to review your life insurance. When you get married, you may want to either take out a new life insurance policy or check to ensure it’s enough to cover yourself as well as your spouse’s expenses. If you have a baby, get re-married or get divorced, you may also want to update your policy beneficiaries if necessary.
Changing jobs or getting a promotion
Depending on if your new or previous job offered life insurance cover, you may want to review your policy. Employers sometimes offer group insurance policies for staff, however this won’t stay with you if you leave and you may be left uninsured if your new job doesn’t offer protection. If you are starting a new job or promotion where your income level changes, this may also mean that your expenses change with the increase, so you may need more life insurance cover for these expenses.
Getting a loan, starting a business or taking on more debt
In the case of your unexpected death, if you have acquired a loan or have other debt you may consider reviewing your life insurance cover to ensure this debt can be paid off and is not passed on to your loved ones. Likewise, if you have started a new business this may have meant getting a loan that you may want covered by your life insurance.
Significant health changes
There are a number of health factors that can change the amount you pay in your life insurance premiums. If you have recently lost a lot of weight or quit smoking for example, it’s worth reviewing your life insurance to see if you can have the premium reduced. On the other hand, if your health declines there will be no change in your life insurance as you were already covered.
If you’d like to discuss options for life insurance to suit you and your family, or review your current policy please get in touch with us for insurance solutions tailored to suit your lifestyle.