When should I review my life insurance cover?

When your annual notice to renew your home or car insurance comes through, many of us will find the time to have a quick shop around to see if we could save some money. In doing this, without even realising it, we’re continuously making sure our policy is still right for our needs - as subtle changes over a period of a few years can mount up.

Comparing lots of different policies is a worthwhile process and more often than not, it’s surprising how much you can save.

In contrast, for many people, it’s a different story when it comes to life insurance. Life insurance policies often last between 15-30 years, so it's no wonder why so many people don’t consider looking at it or making changes. This is particularly concerning when you consider that our lives, lifestyles, health and what’s important to us is always changing, so it’s always important to know whether your life insurance policy is still up to the job.

The good news is, the process for looking for a life insurance policy will be incredibly familiar to anyone who looks at reviewing all their other insurances. Nowadays, it really couldn’t be easier to look at all the options available for life insurance.

In this article, we'll look at why you should review your life insurance cover as well as what you can do to adjust your policy.

Why should you review your life insurance?

Life insurance policies often last between 15-30 years, so it's no wonder why so many people don’t consider looking at it or making changes.

This is particularly concerning when you consider that our lives, lifestyles, health and what’s important to us are always changing, so it’s always important to know whether your life insurance policy is still up to the job. By reviewing your policy, you can identify any areas of your policy which may need to be adjusted to meet your current and future needs.

Since owning the policy, have your circumstances changed such as:

• Have you got married or are you in a long-term relationship?

• Have you got divorced/separated?

• Have you had children?

• Have you bought your home and have a mortgage?

• Have you taken out any loans/debts?

• Has your income changed?

• Has one of your beneficiaries died?

In some situations, you may wish to increase your cover such as if you've got married or had kids since you originally took out the policy. On the other hand, you may wish to reduce your cover if your children are no longer financially dependent on you, or you've got divorced.

If you were a smoker when taking out the policy, you may be able to lower your premiums by quitting and staying smoke-free for at least 12 months. If it's been several years since you smoked you can contact your insurer to potentially lower your cover costs.

Thinking About The Future

As life happens, so will the the reconsideration of whether your life insurance needs are still being met; whether you’re moving home, changing career, getting married, becoming a parent/grandparent or even if you’re looking at retiring - all of these events may have an impact on the cover you already have, or may want.

If you have other people who depend on your income and you don’t already have life insurance in place, the best time to buy a policy is right now.

Right For You

At Cavendish, we’re committed to providing our customers with the information they need to make an informed choice about what kind of policy is right for them.

We have plenty of useful information and guides on our website, in particular to the difference between ‘term’ life insurance and ‘whole-of-life’ insurance (also known as life assurance).

Get In Touch

If you don’t currently have any cover in place or you’re unsure if your cover still meets your needs - the team at Cavendish can help.