What’s Important to you?

Reviewing When & Why

It is quite common for most people to buy an insurance policy with the mind set of “get it and forget it” and they very rarely give it a second thought.

We are very big believers of regularly reviewing your financial situation to ensure that the insurance cover originally set it place does and will still address your needs at claim time.

Thinking you never have to review your insurance requirements is potentially setting yourself up for some disappointment with your cover not meeting your expectations when you need it most.

Below are a few guidelines to when you should review your insurance cover;

The Benefits

An Income Change

You may have started a new job. How much life insurance do you need?

Perhaps you have received a promotion with an increase in wages/salary – how does this affect your income cover? Does your current income cover meet your new increased income requirements?

You may have decided to reduce your hours, so whether you got a new job, you lost one, or reduced the number of hours you work –  it’s a perfect opportunity to do a review of your income cover.

Your Health Changed

This is an important one! Let’s say you’ve been working out and eating healthy and as a result your blood pressure went down – congratulations, this may also affect not only your health insurance premiums but also your life insurance premiums!

In a similar circumstance you may have lost weight, guess what, you may now qualify for a review of a loading that may be on your insurance cover.

Your Family Has Grown

You may be expecting a child and will soon begin to feel an enormous responsibility to provide for your little one.  Being a family with children you will know what I’m talking about.

The are some very tough questions that need to be asked. “If I die what happens – how does my wife and children survive?” “Could they afford to cover the mortgage or rent?”

If you have older children, your concern may be how to provide for their higher education needs. You may need to increase your life insurance if you want to pay for their college should something happen to you.

These are not fun conversations, but they are crucial to you having the knowledge and resources to provide for your children and important when reviewing your life insurance policy.

You have a Mortgage

You may have paid off your mortgage and you don’t require as much life insurance anymore.

Or, maybe you have bought your first home and will not need to allow for this debt to be paid you’re your passing.

Reviewing your life insurance when your housing status changes is important – you may need more or less life insurance, and or mortgage cover but at the very least you will know what financial risk may be reduced with the right insurance cover in place.

Your Marital Status Changed

Congratulations! You just got married – now review your life insurance! You now have a spouse, or partner – someone who may be dependent on you – it’s important to review how much life insurance you need.

On the other hand, your life insurance needs may change if you have recently gone through a divorce. You may no longer need that much coverage anymore.

Reviewing your insurance cover on a regular basis is a necessity to ensure that when you need your insurance the most – that it meets your expectations.

Plan ahead to be prepared!