It’s undeniable that our lives are constantly changing – sometimes for better, sometimes for worse. But as our lives and situations change, so should our financial safeguards. After all, they are the measures that we have put in place to ultimately protect ourselves, our families, our homes and our lifestyles in the event of uncertain circumstances arising.
However, quite worryingly, a recent study of 2,039 UK adults has found that 64% of people who have moved up the property ladder in the past five years have not reviewed their life insurance plans; despite having bigger mortgages as a result.
And the two most popular reasons that homeowners with mortgages gave for not reviewing their life insurance? Number one was that they thought it wasn’t necessary and number two was that they couldn’t afford it.
Granted, moving house is a stressful experience and comes with a long checklist in itself, but reviewing your insurance arrangements should definitely not be forgotten.
However, it’s not just moving house that should trigger you to scrutinise your insurance arrangements. In fact, there are numerous other incidences and situations that inevitably require a review of your insurance cover to be carried out.
Perhaps you’ve experienced a shift in your work situation. Job changes occur relatively frequently nowadays, as do promotions or even demotions, which lead to salary increases and decreases. All of these scenarios, despite seeming relatively minor, should prompt you to check and amend your policy where applicable.
Obviously, more dramatic changes in your employment status need even more attention when it comes to your insurance. Being made redundant, retiring or finding yourself out of work all massively impact your financial situation and, therefore, an insurance review is a must.
You also need to be conscious of all the other common scenarios in relation to your insurance that could have implications. A simple change of address; the birth of a new child; a marriage, divorce or re-marriage; and changes affecting your mortgage all need to be considered in terms of how they affect your insurance policy.
The scenarios that we have outlined above represent some of the most common lifestyle changes that people experience. There are though far more day-to-day considerations that may also have repercussions on your existing insurance cover.
For this reason we strongly suggest that if you are in any doubt that you check with us in the first instance. You might even find that your premiums or overall policy cost are reduced as a result!
At Premier Choice we are dedicated to ensuring that you are properly covered at all times, which is why we advise that any existing policies should be reviewed whenever your personal, family, or business circumstances change. We also strongly recommend that you have made a will and that it is up-to-date, and that you have placed all life policies into a trust. Our flexible approach means that your objectives continue to be met at the best possible price.