If you have an existing life insurance policy, you may want to check it again as it may no longer suit your current needs and circumstances. And if you don’t have one yet, then you may want to consider getting one for yourself as soon as possible.
But why do you need to change your policy if you already have one? Here are 5 reasons why you might need to look updating your insurance policy today:
1. Prices Keep on Going Up, But the Coverage Remains the Same
Are you noticing that for years, your life insurance partner has been increasing your premiums without really changing or leveling up the coverage?
That’s one clear sign that you may want to consider changing your policy as soon as possible. It is important to note that while the prices can go up to keep up with inflation, the coverage should also change as they increase the premium.
If not, then it’s best that you speak with your life insurance company so you can check with them the reasons behind it.
2. Your Needs and Circumstances May Have Changed
When did you buy your insurance policy?
Maybe you bought it years ago and haven’t checked it since. It’s likely you had different needs back then compared to now. If your circumstances have changed, it’s time for you to also change your policy that matches your current situation.
- Maybe your married now and have kids of your own. In this case its important to reevaluate your current coverage and change the policy beneficiary. In this way, the beneficiaries of the policyholder, such as the spouse, will have assistance coverage for any expenses, such as bills, debts, liabilities and other necessary expenses that might incur upon their death.
- Maybe you also want to buy a policy for your spouse, whether they have work or not. If they suddenly passed, you may get coverage for the work they did, including caring for your home and your children.
- Specific policies can also cover the tertiary education costs of your children.
- If you’re getting a divorce, then you may need to update your current policy.
3. Your Current Coverage Doesn’t Include What You Need
If you own a life insurance policy that covers the mortgage but you already own a house of your own, that can be a waste of time and money paying for that policy.
You may want to check whether your existing policy covers the thing that you really need. So when buying a policy, make sure that you carefully read the fine print to make sure that everything you want is covered by your insurance. If not, then you may be wasting your time paying for something that won’t really benefit you and your family.
4. You Had an Enormous Increase in Your Income
It is important to know that life insurance doesn’t just cover lives, injuries or deaths. You can also protect your income in case you experience losing a job because of a serious illness. Income protection can help you and your family during these difficult times.
Now, if you recently are acquiring a higher income, then maybe you’ve also increased your standard of living, which makes your current life insurance not the very best insurance for your circumstances. And if your income protection has a lower coverage, then that won’t be sufficient when you suddenly lose your job. So, it is really important to keep your life insurance up to date.
5. You Bought a New House
If you’ve recently bought a new house, then you may also want to purchase life insurance that allows you to include this in your policy by also increasing your sum insured. This means that if something happens to you, the monthly mortgage will still be paid. In the same way, loans, such as personal or car loans, can also be covered. So it is important to increase your coverage to include these things in your policy.
Change is inevitable, and this applies to your life insurance. If you haven’t checked you policy in a while, then now is the right time! You may want to consdier updating the list of your beneficiaries, check the things you need to include in your policy, and other things that you want to include in your coverage. Life insurance is there to adjust to your current situations and your needs so you won’t have to pay for something extra that you really don’t need.
Novo Wealth provides ethical financial advice for professionals and business owners who want to invest responsibly. We’ll provide you with tailored ethical financial advice to suit your needs and circumstances in life. Book a complimentary meeting with us today!
IMPORTANT; This information is general in nature only. It does not take into account your individual circumstances. We recommend that you seek professional advice before making any investment decision.
