As previously mentioned, your insurance cover is a window on what you value in life - considering what you value and what you can’t afford to lose should be the starting point for deciding what you insure.
However, our lives and values change over time and our insurance cover should reflect this. It therefore makes sense to regularly review your insurances to make sure they remain a reflection of what you value and to ensure your insurance budget is being most effectively utilized.
Think about your life 5 or 10 years ago and your life now. How has your life, and your priorities, changed in this time? These are some common milestone life events that may prompt you to review your policies:
- Moving house: have you moved to a new house with a higher mortgage? Did you take out a life insurance policy on your first property to cover the mortgage? If so, you may want to review the policy to cover any shortfall on the new property.
- Getting married: do you have joint liabilities? If so, consider whether to protect each other for them.
- Starting/ growing your family: what would happen to your family if you were no longer there, or could no longer pay the bills? Even if you already have insurance in place to protect your partner, consider what additional expenses would be required to cover your children’s short-term and long-term needs.
- Family grown-up: if your children have left home and are financially independent do you still need the same level of cover as you did when they were dependent on you?
- Changing jobs: have you had an increase or decrease in pay recently? If so, you may wish to increase or decrease your premiums and the sum assured accordingly to reflect this.
- Retirement: do your family still rely on your income? Would they face hardship in the event of your death? If not, then consider whether you still need life insurance.
Even if nothing significant has changed in your life it is still a good idea to review your insurances regularly to ensure they are the best fit for your needs and offer the best value for money. The policy that was the best fit for you 5 years ago may not necessarily be the best fit now. New products may have come onto the market which may be better value, or offer better cover for your needs. Hugo Wright will carry out a free, no obligation review of your insurances to ensure you are getting the best deal.