Checking that you have sufficient life insurance may be something that you mean to do, but never quite get around to. Surely that policy you took out will be adequate? Don’t just hope for the best, rather get into the habit of making a regular review of your level of cover and check the detail so that you don’t find yourself underinsured.
Here are a few trigger points when it pays to review the level of your life insurance cover:
Marriage or civil partnership
When you enter a formal relationship with your partner, you may wish to share some or all of your financial responsibilities. Making sure that there are funds available to meet your financial commitments, should anything happen to either of you, should be part of your planning.
Moving up the property ladder
As you progress up the property ladder your mortgage is likely to increase. Remember to alter your life insurance to cover the larger amount of borrowing.
It’s not just your life that needs insuring.
As your family grows, so will your financial responsibilities. As well as checking that your existing level of life cover reflects this, it is also worth looking at other forms of cover such as accident, sickness and unemployment, critical illness or income protection.
Changes in lifestyle
Financial commitments can grow as your salary increases. You and your family may take more frequent and more expensive holidays and eat out more often. You may decide to put your children through private school. It is easy to become accustomed to this standard of living. This may be the time to increase the level of cover so that your family’s standard of living isn’t compromised should the worst happen to you.
A new job
Some employers will offer life insurance as part of the package while others don’t. It is important not to assume that you are automatically covered when you change to a new job. It may now be up to you to insure your life.
Enjoy a relaxing retirement
As retirement beckons, remember to consider Inheritance Tax planning. A protection policy providing a payout on death will help to cover tax liabilities on your estate, if written in a suitable trust.
Financial security means safeguarding your wealth against the unforeseeable and protecting yourself and your family in a worst-case situation. Keeping a regular check on your cover isn’t an arduous task and you may be thankful that you did. It does not necessarily mean paying a higher premium – there may be a more cost-effective policy available that suits your needs. Talking with one of our advisers will give you the peace of mind that you have affordable and sufficient cover.
Important Information: Some protection products, such as Whole of Life or Long-Term Care, may include an investment element. The value of your investments can go down as well as up, so you could get back less than you invested. If you stop paying premiums your cover may end.
Find out more about our protection and insurance products here https://www.lighthousegroup.plc.uk/services/protection-insurance/ or call 0800 085 8590 to book a complimentary initial consultation.