Life insurance is not a โset-and-forgetโ insurance product, it requires regular review. Your life is constantly evolving, and it is crucial to ensure that your insurance keeps up with these changes.
Important life moments
Marriage or divorce:ย When you are married or divorced, your financial responsibilities and beneficiaries may change. Reviewing your life insurance ensures that your cover adequately protects your family and any dependents you have.
Starting a family: Extending your family is a special event and comes with additional responsibilities. It is the ideal time to review your life insurance coverage to ensure that your policy provides sufficient funds to support your childโs upbringing, education, and other needs.
Change in employment or income: As you progress in your profession, whether through a promotion, career transition, or a new job, it is important to assess your life insurance coverage. An increase in income may require an adjustment to your policy to maintain an appropriate level of protection for your loved ones.
Changes in your financial obligations
Life insurance should be able to cover your financial obligations adequately. Hence the reason it is important to review your policy when you make significant changes in your financial responsibilities, here are some examples:
Home ownership/Debt accumulation: If you recently purchased a new home or refinanced your mortgage, your life insurance cover should account for the outstanding balance of your mortgage. This ensures that your family wonโt face the burden of repaying the loan if something were to happen to you.
Changing health conditions: On a positive note, if you have made significant beneficial lifestyle changes, such as quitting smoking, losing weight, or improving your overall health, you may be eligible for lower premiums. Reviewing your policy can help you take advantage of potential savings.
Even if your life circumstances havenโt changed for some years, it can still be a good idea to check that your existing policy fits your current needs. Whether this means increasing your cover to account for personal or business debt, the impact of inflation, or changing your beneficiaries to include a new child, the goal is to have your life insurance in step with your life.
Please speak with us, together we can review your policies in line with your current circumstances and implement changes as needed.
Canberra Advice Financial Planning
Suite 258, 44 Constitution Avenue, Parkes ACT 2600
