While you may already have suitable life insurance based on your current circumstances, you could end up being under-insured in the future if you do not update your policy as key events occur in your life.
To prevent any nasty surprises further down the line, and ensure you remain fully insured, it is important to understand when you might need to change your level of life insurance cover.
Here are five reasons you might need to revisit your life insurance:
1. If your income changes
As your salary increases, so too does your standard of living (usually). When you consider that your life cover is designed to provide your dependents with a lump sum in the event of your death, it stands to reason that you may need to increase it if your family’s standard of living has increased.
2. If you move house
Larger homes usually come with larger mortgages, which is why you will need to reassess your life insurance cover if you move to a bigger house. After all, should you die, your family will be left to foot your mortgage burden. If your life insurance is still based on your previous mortgage, your family could face a significant financial hardship.
3. If you get married or divorced
If you get married, chances are you’ll not only be making a commitment to share someone’s life but also any financial obligations too. You should sit down with your spouse, work out your finances and decide if your current life insurance is still suitable.
Likewise, if you get divorced or separated, it is likely that you will want to update your policy beneficiary. You are the only person who can do this, which is why you must take action prior to your death.
4. If you have children
While raising a child is an amazing experience, it is also one that comes with significant financial implications. If one parent’s income should suddenly be lost, the ramifications on a family can be enormous.
Review your life cover every time you have a child. You need to ensure you have sufficient cover in place.
5. If you get new credit
Your existing life insurance policy will be designed to cover your mortgage should the worst happen. But what about any other debts you might have?
Maybe you took out a loan to improve your home or have run up some credit card balances in recent times for whatever reason. In the event of your death, any outstanding debts you have may be paid out of your estate.
The bottom line is that none of your debts should put a financial burden on your family. That’s why you need to ensure your life insurance cover is reviewed in line with your debts.
When was the last time you reviewed your life cover? The life events outlined above are just some of the reasons you might need to revisit it.
Or maybe you don’t have life cover yet, but it’s something you are considering.
Whatever your personal situation, we are here to help you make an informed decision and secure cover that is 100% right for you and your family.
Contact Premier Choice Group today for the the right advice you need.
I joined Premier Choice Group as an SME/Corporate Consultant in 2017 and look after the Healthcare & Protection needs of a nationwide portfolio. I began my career in Healthcare and Protection in 1985 with BUPA, before moving on to Royal & Sun Alliance. In 2002, I became an Intermediary and worked with Private Clients, SME’s and Corporate clients on a local, national and international basis.