We suggest you review your current Life Insurance Policy when some major changes in life occur.
Some of the major life events include:
• Relationships: One reason to review and adjust your life insurance policy would be to changes in relationships. For instance, you may have been single when you took out the plan but may now be living with a partner or married. On the other hand, you may have been married and are now divorced or with a different partner.
• Changes to the beneficiary: You may find yourself in a situation where the main beneficiary is no longer a part of your life, such as in a relationship breakdown, in which case you would need to look at making changes so that the benefit goes to the person you want it to go to.
• Family: You may have taken out your life insurance cover when you had no kids or had fewer children than you have now. The addition of another child or children to the family makes a huge difference to finances, as you will need to consider the cost of bringing up the child/children, paying for clothing, increased food costs, education etc. Again, this would mean that you need to make changes to your life insurance coverage levels accordingly and may also mean making changes in terms of the beneficiaries of the benefit.
• An increase in income levels: The amount of income you are bringing in may have changed since the time you took out your life insurance plan initially. This means that you will most likely have become used to living on a higher income, have become used to a different lifestyle, and may have taken on increased financial commitments in line with your higher income levels. This means that you would need to consider altering your level of coverage.
• Your financial commitments: Since you took out your life insurance plan, you may have taken on more financial commitments, such as a mortgage or a car loan. With these increased debts to deal with, your family could be left with nowhere near enough benefit to cover necessary costs and commitments in the event of your death unless you make changes to your life insurance accordingly so that the level of coverage is adequate and takes into consideration these increased financial commitments.
• Repayment of debts: Your insurance needs will decrease as and when your debts are repaid and there may be less financial commitments to meet in the future. It may be worthwhile to consider altering your level of coverage to reflect this.
Change is constant. It is a good idea to review your Life Insurance Policy at least once a year.
If you are unsure as to whether your life insurance policy is still suited to your needs or what sorts of changes you need to consider, give us a call today on 07 3806 5222 to discuss your current policies.