Insurance isn’t set-and-forget. As your life changes, the type of cover you need is going to change too. For example, your needs as a young family are going to be very different from when you’re retired. So it’s important to check regularly to make sure you’re getting the right insurance cover for yourself and your family, and that you aren’t paying more than you need to.
When to check your insurance:
When you enter a new relationship or get married, you have someone else to consider. Having insurance in place offers financial reassurance if something happened to you or your partner. Likewise, if you leave a relationship or get divorced, you’ll no longer need cover for both of you, and should update your policy to reflect this change.
Over your working life, there’ll be swings and roundabouts – job promotions, redundancy, maternity leave, sick leave, retraining, leaving work to study, or leaving the workforce entirely. Each of these stages calls for an insurance check, and probably an adjustment to your cover.
Kids being born (or moving out)
Like your career, your family will change over the years, and your insurance needs to change with it. The arrival of a new baby calls for an immediate insurance review – you’ll need to include your new family member or add life insurance if you don’t already have it. And one day when those babies grow up and leave home, you’ll need to review and change your insurance cover again.
Big financial changes
Financial changes will hugely affect your insurance cover. If you take on new debt or finally become mortgage-free, your insurance needs to be updated to match.
If you’ve bought a new home, whether it’s a downsize or an upgrade, you’ll need to review your insurance to ensure it’s still the best cover. A bigger home will usually mean a bigger mortgage and higher insurance cover, just as a downsize may mean a lower mortgage and less cover.
Something’s happened with your health
The state of your health affects the premium you pay on your insurance. Your premium is higher if you’re overweight or a smoker. But if you lose weight or quit smoking for more than one year, most insurances will lower your premium or offer you different levels of cover. If you get a life-threatening diagnosis, you may also want to increase your cover.
It’s been a year
You should immediately review and make changes to your insurances if anything big changes in your life. But on top of that, it’s still a good idea to check your insurances regularly. Even if you think you’re getting the best deal – other providers may offer deals at different times, and you may be able to secure more favourable terms if you check regularly. The difference of a few dollars each month could add up to thousands in the long run.
Insurances to consider
Insurance isn’t just for people with mortgages or business owners – there’s a policy to fit every need.
- – Personal life insurance pays out to your family if you die or are diagnosed with a terminal illness.
- – Business life insurance pays out funds to ensure your business keeps operating if you die or are diagnosed with a terminal illness.
- – Trauma or illness insurance pays you a lump sum to be used however you like if you’re affected by an illness or injury.
- – Disability insurance pays you a lump sum if you become totally disabled and are unable to work.
- – Mortgage protection and repayment cover pays your mortgage instalments if you become sick, injured or disabled and can’t earn.
- – Income protection insurance continues to pay your salary if you become sick, injured or disabled and are unable to work.
- – Medical insurance covers you for a wide range of medical treatments and therapies related to your health.
Save your finances, your family and your future
Reviewing your insurance cover regularly is important for many reasons. You need to see that you’re getting enough cover for your situation, and not paying more than you should. To make sure this happens, you should check at least once a year or in the event of a life change. As well as saving yourself thousands, you could save the future of your family finances.
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**Underwriting criteria and insurer terms T’s and C’s apply