How often should I review my life insurance?
As they say, the only constant in life is change. Life is full of unexpected events, whether they're good or bad, and they're likely to have an impact on your insurance policy. When it comes to income protection, you want to be sure that your policy can adapt and mould to your changing needs and situation.
The last thing you want is to be left out on a limb if your situation changes for the worse, so it's important to check in with your financial adviser regularly to see whether your insurance policy is still suitable. With this in mind, here are some times when you could think about updating your plan.
Starting a new job
So you've secured your job – what's next? At key moments like this you should take a look over your insurance policy, particularly if you're earning more than you were previously. In any case, it's a sound reminder to make sure you have the right level of income protection in place. Talk to your financial adviser whenever you start or leave a job – they can help you figure out how your life insurance plan can be adapted to suit your changing situation.
It's a big shift from singledom to marriage – and not just emotionally. Settling down with a partner can have a big impact on your insurance needs. You have a spouse to provide for and, further down the line, children may be on the horizon. As the number of dependants in your life grows, so to does the need to protect them financially if things don't go to plan. Life insurance will offer peace of mind that if you were to fall ill or find yourself unable to work, your family can rely on your policy to see them through.
Buying a house
Buying a home is a big commitment and often a rewarding one. However, this is another milestone where it's crucial to look over your current insurance plan. In the event of your death or sudden illness, you'll want to make certain that your family won't be left to pay off the remainder of the mortgage. Speak to your financial adviser about the level of coverage you'll need – they can lift the burden from your shoulders and help you make an informed decision.