Insurance might not always be front of mind, but it’s important to review your policies regularly to make sure you’ve got the right cover. Whatever your mix of cover — life, total and permanent disability, income protection and trauma — insurance can be an important part of protecting yourself and your family, now and into the future.
When was the last time you checked on your personal insurances paid both inside and outside super?
Does your existing cover meet your current needs? It might be time for a review.
Insurance works best when you have the right level of protection for your situation, and as your life changes, so might your insurance needs. It is best practice to review your insurance needs at least once a year. If you have a major life change, the change in your life may have a significant impact on your insurance needs.
Reviewing your insurance also aids in being proactive about minimising your insurance costs where possible, and ensuring you are receiving value for money.
What life events influence making a change to your insurance cover?
It could be time to review your cover if you’ve:
- had children
- had a pay rise or changed jobs
- changed your relationship status
- taken on more debt
- paid down significant debt
- received an inheritance
- stopped paying school fees
- have adult children no longer at home
- you are thinking about retirement
How to determine if you have enough insurance – consider the following questions:
- How much money would your family have if you were to pass away or become disabled? Consider the amount of money you have in super, savings, shares and other assets, and existing insurance policies as a starting point.
- How much money would your family need if you were to pass away or become disabled? Consider the size of your mortgage and any other debts you have, as well as other costs such as childcare, education and day-to-day expenses you may be covering.
The difference between these figures should provide some guidance on the amount of insurance cover you may need.
If affordability is a major concern, you might be able to
- reduce the amount you’re insured for
- change how often you make a payment
- adjust your waiting and benefit periods
- look at the product ‘bells and whistles’
Reviewing your insurance can be complicated. Your Walshs Financial Adviser will be happy to assist you at your next annual review to ensure your insurance is reviewed and up to date.
By Kirby Jamieson, Personal Risk Specialist Adviser, Walshs Financial Planning