Life moves fast. It’s a constant stream of choices, milestones and changes — and many of those changes can affect your financial situation and the type or level of insurance cover you need.
Yet when life gets busy, reviewing your insurance can easily slip to the bottom of the to-do list. You might also think that reviewing your policies automatically means paying more. Fortunately, that’s not necessarily the case. A review is simply an opportunity to make sure your cover still suits your circumstances, your priorities and your budget.
So, when was the last time you reviewed your insurance policies? Come on, be honest!
Why review your insurance?
Insurance isn’t something you necessarily want to think about every day, but reviewing it regularly can help ensure you’re protected when it matters most.
Here are a few good reasons to take another look at your cover:
Your insurance should suit you and your budget. Your insurance needs are personal. The right cover for someone else may not be the right cover for you. A review can help make sure your policies reflect what you want to protect and what you can comfortably afford.
And remember, reviewing your insurance doesn’t always mean increasing your cover or paying more. Depending on how your circumstances have changed, you may find opportunities to adjust your cover and potentially reduce your premiums.
Life doesn’t sit still — and neither should your insurance. Think back to when you first took out your policies. What’s changed since then?
Perhaps you’ve bought a home, started a family, changed jobs or launched a business. Maybe you’ve paid down debt, separated from a partner or your children have left home. Life events like these can all change the amount and type of protection that’s appropriate for you.
To make things easier, here are seven key life events that could be a good reason to review your insurance.
1. Having a baby
Starting or growing your family is one of life’s biggest changes. Whether you’re welcoming your first child or your third, it’s a good time to consider whether your existing policies still provide the right level of protection for your growing family.
As a parent, your family’s wellbeing is likely to be your number-one priority. Depending on your circumstances, different types of cover may become more relevant, including life, health and income protection insurance.
2. Purchasing a house, other property or increasing your mortgage
Home ownership is a quintessential Kiwi dream — and something you’ve worked hard for is worth protecting.
A mortgage is often a long-term financial commitment, and a lot can happen along the way. If you were unable to work or earn an income, could you and your family continue to meet the repayments? Having a plan in place for the unexpected can make all the difference.
3. Paying off debt
Taking on debt can be a good reason to consider increasing your insurance cover. But the opposite can also be true.
If you’ve managed to reduce your debt or pay off a significant chunk of your mortgage, that’s not only something to celebrate — it’s also a great opportunity to reassess your insurance needs. You may no longer need the same level of cover you had before, and adjusting it could potentially save you money.
4. Getting a new job or a change in income
A new job, career change or pay rise can all affect your insurance needs.
If your income has changed, it’s worth checking whether your existing cover is still affordable and appropriate. A higher income or increased financial commitments may also mean it’s time to consider whether additional protection, such as income protection or trauma cover, could be suitable for your circumstances.
5. Getting married or separating
When your relationship status changes, your financial situation often changes too.
Getting married, entering a long-term relationship or separating from a partner can affect everything from household income and shared debt to who depends on you financially. Reviewing your insurance can help make sure your protection reflects your current circumstances.
6. Starting a business
Starting a business is exciting — but it can also bring additional financial commitments and risks.
Your business may be more than just a job; it’s something you’ve worked hard to create. If you’re taking on debt or relying on your ability to work to keep the business running, it’s important to consider how an unexpected illness, injury or other event could affect you and those who depend on you.
7. Becoming an empty-nester
Being a parent is a job that never really ends, but when your children become independent, the financial side of family life can change significantly.
Perhaps you’re still helping with tertiary study, or maybe your children are now fully standing on their own feet. Either way, it’s a good time to review whether you still have the right level of cover in place for your current stage of life.
Knowledge is power
One of the biggest benefits of an insurance review is simply understanding what you already have.
Many people have multiple policies and aren’t entirely sure what each one covers — or whether there are gaps or overlaps between them. Taking the time to understand your insurance can give you greater confidence that your protection is working the way you expect.
After all, the worst time to discover you don’t have the cover you thought you had is when you need to make a claim.
A review can be easier than you think
Reviewing your insurance doesn’t have to be complicated or time-consuming. It can be a straightforward conversation about where you are now, what’s changed and what you want to protect going forward.
Regular reviews can help you fine-tune your insurance as your life evolves, rather than leaving you with cover that made sense years ago but no longer reflects your circumstances.
We’re here to help
Do any of these life events sound familiar? Or has something else changed in your life recently?
If it’s been a while since you reviewed your insurance, now could be a good time to check that your cover still suits your needs. Our Insurance Advisers can help you understand your options and review your existing policies, so you can make informed decisions about your protection.
Make an appointment to review your insurance today.
