Many of us review our home and car insurance policies every year to see whether we can save money or to look for more suitable cover. Reviewing personal protection cover in this way is just as important, but because policies tend to last for several years, this can easily be overlooked.

Life changes fairly frequently, which means it’s vital to review your life insurance, critical illness cover and income protection insurance policies on a regular basis to ensure they still provide adequate cover.  Regular reviews will ensure you’re not paying too much for a policy that no longer suits your needs, or that you’re paying too little for a policy that provides insufficient cover for your circumstances.

Key trigger points

It’s sensible to review your protection cover once a year, but there are also several life events that should act as trigger points for a review:

Moving home – Whether you’re moving to a larger home or downsizing, the size and term of your mortgage is likely to change and thus your cover will need adjusting too.
Expanding the family – If you’re getting married or having children, it’s likely you’ll need to increase your cover to ensure your family will be financially comfortable if anything happens to you.
Changing jobs – Benefits such as death in service and sick pay can vary depending on your employer. It’s important to check what your new employer offers and review your own protection plan accordingly. You may also need to adjust cover levels based on your new salary.
Retirement – When you retire, consider whether anyone still relies on you financially. If your children have grown up and left home, you may be able to reduce your cover levels.
Changes to your health – If you’ve quit smoking or been treated for health complications you had when you first bought cover, you may now be eligible for a cheaper policy and it could be worth switching.

What should be considered? 

When reviewing your cover requirements, your first step should be to look at how much debt you have. Although your mortgage is likely to be your main priority, you may want to increase cover levels to include loan and credit card debts, as well as every day bills and expenses.  You should also consider whether your financial responsibilities have changed. If your family has expanded, you’llneed to factor in current childcare costs, as well as future expenses such as university tuition fees.

How we can help

If you’re not sure whether your existing protection plans provide adequate cover, please get in touch. We can discuss any changes to your circumstances and help you work out the right level of cover for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.  As with all insurance policies, conditions and exclusions will apply