Time to Review Your Life Insurance?

Most people just take out a life policy, stick it in a drawer and never look at it again.

You should review your life insurance or mortgage protection every few years.  Check if there is better cover available or if you can get better value elsewhere. Did you know that the price of life insurance has fallen by up to 40% over the past 10 years. Whenever you experience a life event you should review your life insurance such as

You’re having a Baby

Congratulations! Your life is about to change for the better but with a bundle of joy comes a bundle of responsibilities. You are no longer the most important person; he or she must be put first. As the adult, it is your duty to make sure your child is taken care of should something happen to you or your partner.

A mortgage protection policy will clear your mortgage but it will not leave a cash lump sum to pay for the day to day needs of your child. This is what life insurance is for.

You’re getting Married

When you’re married, you share everything with your partner. This includes financial obligations. You should make sure all your debts are covered.
Some people think they don’t need life insurance until they have children but they are mistaken. If you are planning on having children then you should put life cover in place now to make sure you are not excluded from some benefits.

You’re buying a Home

You must take out a mortgage protection policy when you buy a family home. We would always advise putting a separate life insurance policy in place too to protect your family.

Mortgage protection will take care of the house; life insurance will take care of the people you love in it.

Changing Jobs –

Well done on the pay rise, it’s a rarity these days. Enjoy the new and improved lifestyle! As your income has risen, you will need to increase your life cover too. Remember life insurance is there to replace your income lost on death. If there is more income to replace, then you need more life insurance.

On the other hand in the more likely situation that you have experienced a drop in income, then maybe you can save money by reducing your cover.

Has your Marital Status Changed?

If you’re single now through death or separation you will need to sit down and review your life insurance. The first question to ask is whether you need cover. Are your children no longer dependent on your income? If so then you could cancel your life cover if money is tight.

However if you have dependent children but your partner is no longer with you then you may have to increase your cover. As the sole earner your children are 100% reliant on you. What would happen if your income stopped? You need to look at life insurance and income protection.

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