- Review your Life Insurance before its too late!
Article published on 6th October 2008
Life is something which is continually changing around us. Every day things change around us and what we considered to be the norm last month can change at the drop of a hat.
As our world and lives change, we adapt to meet our new circumstances and to tackle the challenges that life throws. So why is it that we forget to change our forms of protection (such as Life Insurance and Income Protection) as our circumstances change?
For many people the taking of protections such as Life Insurance and Critical illness Cover, is sparked by a change in our immediate circumstances. The purchasing of a new house or the coming of a new baby to your family are prime examples of catalysts for changing protection covers but many people forget to review their circumstances on a regular basis.
What you considered to be adequate cover 5 years ago may not be suitable at all any longer especially if your family has grown or your mortgage has changed.
A change in your mortgage without reviewing your life insurance could mean that you are either under-covered (i.e. your mortgage has increased but your protection has not) or you are over-covered and therefore paying for life insurance protection cover which you don?t necessarily need. The perils of been under-covered are clear to see. If the worst was to happen to you tomorrow, you family would be left with a mortgage to pay which would not be fully paid off by your insurance. For most families, this combined with the loss of a main breadwinner would bring them financially to their knees and all this at a time whilst your family are grieving.
The same is also true of other forms of protection such as Income Protection Insurance where a change of job or salary should, but often doesn?t, spark a review of circumstances and amendment of cover.
If you don?t review your income protection cover you could be left receiving a payout based on your previous salary if you were to be injured and unable to work!
So overall it isn?t difficult to see why reviewing your cover at frequent intervals is absolutely essential to ensuring you and your family are adequately covered.
An independent financial advisor such as those at Top Quote Online is able to take into account your changing circumstances and make a recommendation as to the cover you need and the most competitive price available on the market. Their advice is free, with no obligation and all quotes are taken from a whole of market panel to ensure you are getting the best cover at the best price.
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