It seems likely that you may go through some life changes during the period after you take out your life insurance. Reviewing your life cover is a vital part of ensuring the amount of cover you have and the cost of your premiums are a true reflection of your circumstances and therefore work well in your lifestyle and needs for the future. Here at the Cheapest Life Insurance we take a look at when you should take a closer look at your life insurance…
Failing to review your life cover could mean your family won’t be able to cover the mortgage or bills if you die. There may also be a cheaper premium plan available to you.
Moving house/getting a mortgage
When you move house or take out a mortgage your partner will become more liable for debt should you die. If you buy a more expensive property there may be a shortfall that your partner won’t be able to cover if you haven’t changed your policy. If you are first insured as having a property worth £120,000 and you upgrade to a property worth £160,000 your partner could be stuck with a shortfall of £40,000 to pay. Contacting your insurer or broker means you can adjust your amount of cover to reflect your situation. You premiums may increase but try shopping around for a good deal.
If you’ve got married since taking out your life insurance you may want to cover your partner against joint responsibilities. In this situation it might be worth increasing your level of cover to include your partner.
It can often be the case that being a new parent makes you look into things that you previously could ignore or avoid. For some new parents one of these things is life insurance. In a period of new life and responsibility have a think about what would happen if you weren’t around to contribute to your mortgage or bills? Choosing a higher level of cover may mean you are able to cover future expenses for your child such as university fees. When arranging or changing your cover take a look at single or joint policies. Joint policies may work out cheaper but with single policies each person is covered which means a possible two pay outs and the remaining parent is still covered. If your family grows, take a look at increasing your sum assured or pay out amount to reflect covering the needs for each of your children. For people with two children this may be a feasible option but for more children it’s still something which is worth looking into. Putting your policy into Trust and naming your children as beneficiaries can also be a worthwhile move; here at the Cheapest Life Insurance we provide this service for free.
If you change your job you could be a position of wanting to decrease or increase your premiums. If you have a promotion at work you may want to increase your amount of insurance and be able to pay higher premiums. If you lose your job, suffer redundancy or be take a break your ability to pay your premiums at their current rate may no longer be sustainable. You could want to lower your sum assured and premiums to a more manageable level. Good insurers will help you to tailor your cover and maintain your life insurance policy. Here at the Cheapest Life insurance we are partnered with a panel of leading UK names.
There are a variety of different situations in which contacting your insurer or broker is worthwhile. Don’t overlook being smoke free for 12 months or more, retiring, your children moving out and losing weight. You could be paying less or you could want more. Getting the most out of your cover for your future needs and the future needs of your family is so valuable. It’s a simple move which could make a big different.
If you would like to talk to us about your life insurance options please call 0800 6800 205.