Unlike an automatic garden sprinkler, life insurance isn’t a ‘set and forget’ kind of thing. There are times in your life when it’s a good idea to review your cover, because your responsibilities may have changed or you’ve reached a milestone. To do the job it’s meant to do, life insurance needs to stay in tune with your circumstances.
With some life insurance products, there are times (we call them ‘special events’) when you can increase your amount of cover without having to provide new health information, subject to conditions. As life changes, so can your cover.
Let’s talk about these special events:
Milestone birthdays Turning any age with a 0 or a 5 at the end of it is a big deal. Some life insurance companies certainly think so, which is why some of them let you increase your cover with no new health information at ages 25, 30, 35, 40 and 45.
Significant moments When something big happens in your life, it might affect the type and level of life insurance cover you need. For example:
Getting married or moving in with a partner. Becoming a couple is often a catalyst for getting life insurance.
Adding to your family. Having your first baby or growing your family means your income is more important than ever. It’s a good time to think about increasing your insurance.
Buying property. The right kind of life insurance can protect your ability to continue to repay your loan, if your income is disrupted for an extended time by sickness or injury.
Increasing the size of your home loan. If you increase your borrowing, you can also apply to increase your cover amount.
Paying off your mortgage. It feels great to be free of your home loan, but you might still need to protect your future plans with some targeted life insurance.
Is your cover up to date?
It’s worth checking-in with us on a regular basis to ensure your cover is up to date - especially if anything’s changed in your life or business recently. It’s good practicce to do this once a year. There’s no charge for a review, however if you increase or change your cover as a result of the review your premiums may change.
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