Reviewing your insurance policies at regular intervals helps to ensure that you have adequate insurance cover for yours and your family’s needs. Changes in your circumstances could mean that you require additional cover or need to update your details.
Insurance policies such as life insurance, critical illness and income protection provide financial protection when you need it the most. It gives you peace of mind that you will still have an income if you can’t work due to injury or illness or that your family won’t lose their home if you die.
Reviewing your policies regularly is essential to ensure they will cover you should the worst happen.
Why insurance needs change over time
If your finances or health change, you could require additional insurance, or you may need to update your details with your insurer to keep your cover valid. Other life changes such as having children, ending a relationship or changing jobs could also impact your insurance needs.
If you move house and take out a bigger mortgage, this is another reason that you could require increased cover.
When to review your policies
It is recommended that you review your policies on an annual basis but if there are any important changes in your life, you should check whether you need to make adjustments to your insurance.
Common policy updates and adjustments
These are some of the most common types of policy adjustments:
- Changing between joint and single cover due to divorce, marriage or death of a spouse
- Extending or reducing the term length due to a change in retirement plans or paying your mortgage off
- Increasing or decreasing the sum assured due to home improvements, a bigger mortgage, having children or inheriting money
- Updating the beneficiary due to marriage, divorce, having children or death
- Switching from a term policy to a whole of life policy
- Adding critical illness to a life policy
