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NobleOak remain committed to our clients during this uncertain time and we’re proud take part in the FSC COVID-19 initiative to support frontline healthcare workers

Life Insurance

Do You Have the Best Life Insurance for you? Signs That You May Need to Consider Your Policy

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

Even if you think you have the best policy for you, it may no longer suit your needs.

Here’s some information to help you find out if you need a change.

You likely already know that you can make changes to your Life Insurance cover over time and there are many reasons you might decide to do this.

For instance, you might have rushed into buying your Life Insurance and ended up with an unsuitable policy. Maybe it was wrong for you from the beginning.

Even if that’s not the case, circumstances change over time. Your needs today may not be the same as when you first bought the policy.

Many people make the mistake of falling into a set-and-forget mentality when it comes to their Life Insurance. They sign up for a policy and think that’s it. They don’t go back to review their cover once in a while and as time goes on, their policy may not be the most suitable or ​best Life Insurance for their needs anymore.

Is it time for a change? How do you know for sure?

It might be time to go over your policy again. The good news is, some of the life-altering events we experience from time to time may have a positive impact on your rates. You may need to make changes to your cover. Here are some of the most common signs that you should revisit your Life Insurance.

1. The Price Keeps Going Up, But the Coverage Stays the Same

Has your insurer notified you that your premiums have increased?

While increases may be common to keep up with inflation, it’s probably a good idea to check if your coverage has changed as well. If not, you may want to contact your Life Insurance company​ and see what’s going on.

Always make sure that you’re getting the ​best Life Insurance rates​ possible. Don’t hesitate to discuss the issue if the prices keep going up, without clear benefits to you.

2. Your Coverage Includes Things You Don’t Need

If you own your home outright, why would you pay for a policy that provides enough to cover your mortgage?

That’s only one of the things that you may decide you no longer need to allow for when considering how much cover you need.

When buying Life Insurance, it’s always prudent to read the fine print. That can save you both money and time in the long run. If you don’t read your policy with full attention, you may accidentally pay for things that you don’t need.

Also, if you make specific life-changing decisions, check to see if they affect your Life Insurance policy. For instance, if you don’t have children at school, having enough cover to provide for their education expenses if you were to pass away wouldn’t make sense. You can most likely add that in later if the situation changes.

3. Your Circumstances Have Changed

If you bought your policy when you were young, you might not have looked far enough into the future. Have your circumstances changed since then?

The answer is probably “Yes.”

You may have since married and started a family. This calls for a change to your cover and perhaps your policy beneficiary. Policyholders are likely to want to make sure that their spouse will have assistance covering any expenses that may arise upon their death. These may include liabilities, such as debts and bills, and necessary expenses, such as funeral costs.

Life Insurance doesn’t just need to cover the breadwinner in a family. You may also want to think about buying a policy for your spouse, even if they don’t produce an income. If they were to pass away unexpectedly, you might have to pay money to cover the work that they did, such as caring for your home and children.

Having children also means that you’ll likely have to plan for tertiary education costs.

Your policy would likely also need updating if you get a divorce. If nothing else, you might want to update your beneficiary.

If you have employer-based group Life Insurance and you’ve now retired, it’s time to review your policy. You may need to go for a medical examination in the process of getting a new Life Insurance policy for seniors.

4. You’ve Had a Dramatic Increase in Income

Life Insurance products are not just for death and injury. They can also cover events like losing your job due to illness. Income protection can help tide you and your family over for a while if you’re unable to work due to illness.

If your income goes up, you may no longer have the ​best Life Insurance policy ​for your needs. With a higher income, you and your family may have become accustomed to a higher living standard. Your expenses may have gone up, as well.

If your income protection is at a lower cover, that might not be enough for your comfort should you suddenly lose your income.

This is why it’s a good idea to review your Life Insurance if your salary increases, especially if it’s a big increase. Conversely, if your income decreases, you may qualify for lower premiums if you decide to reduce your cover.

5. You’ve Bought a Home

Many people decide to buy Life Insurance upon the purchase of a new home.

Most Life Insurance companies allow you to adjust your policy to reflect this by increasing your sum insured (but remember you may be required to undergo a further underwriting process, depending on your policy terms and how much you want to increase your cover by). You can make sure you have enough cover for your new mortgage.

Should something happen to you, the monthly mortgage payments will likely still need to be paid. The same goes for other types of loans which represent an ongoing financial commitment. If you’ve taken out a car or personal loan, you may want to consider increasing your coverage, too.

Have the Best Life Insurance ​for Your Needs at All Times

It’s only natural that your life will change over time, so will your needs.

If you bought your Life Insurance at a young age, you’ll probably need to update your list of beneficiaries at some point. If you have a group Life Insurance policy through your employer, you’ll need to modify it when you retire.

As you see, there are plenty of life events that can affect the type of cover you may need.

These include buying a new home with a mortgage. Your family would likely need to continue the repayments if anything untoward were to happen to you. Your Life Insurance can provide a payment if you pass away to help cover that expense.

Even if there have been no big changes in your life, it wouldn’t hurt to review your policy from time to time.

 

Do you need Life Insurance?

That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

Disclaimer: This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

Please do not use this information as a substitute for getting a proper quote and deeper assessment of your choices.

Resources:

https://lifehappens.org/blog/5-signs-you-need-to-up-your-life-insurance-coverage/

https://sbi.insure/resources/blog/5-signs-its-time-to-update-your-life-insurance-policy/

 

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