You have life insurance for yourself and your partner, you’ve insured your home, car and contents. You’ve gone through the ordeal that is acquiring policies left, right and centre, so that must mean you’re done, right?
Most of the time, unfortunately, it isn’t quite as simple as that. It is important to review all of your insurance covers on an annual or semi-annual basis, as the finer details will shift according to life changes that you make throughout that time. We’ve been in the business of insuring families for quite a while, and during that time we have learned that policies can be highly changeable if you don’t keep an eye on their stipulations.
So, in this blog we’re going to talk about why it’s crucial to review your insurance policies regularly.
What “reviewing your insurance” actually means
A common misconception is that “reviewing” your insurance means buying an entirely new policy or purchasing supplementary insurance. We know that a fear for many people is spending more money on insurance that may not be appropriate. After all, being insured is meant to save you money in the long term.
In reality, reviewing your insurance means keeping yourself apprised of any life changes you have made will impact on future claims, and adjusting where (and how) you spend your money to prepare for that. It can mean restructuring the money you are already spending to focus on different products that are more relevant to your circumstances.
For example, if you discover that you have a history of cancer in your family and you wish to prepare for a possible diagnosis, you may want to take another look at the distribution of your money. One way to change up how you spend would be to take the funds you were putting into income cover – which is paid on a monthly basis – and instead place it into trauma insurance. This is a lump sum cover, and could pay for large lifestyle changes or medical bills rather than small things month by month.
Why should you review your insurance?
As we all know, a lot can happen in a year. You could have upgraded the family car, gotten a new job or borrowed money through your mortgage to upgrade a room of the house. All of these changes are things that will impact on an existing policy, and if you don’t let your insurer know about them, then you may not be as covered as you think you are when the time comes to make a claim.
For many people, something like reviewing your insurance is often pushed to the back burner, as they might not want to think about something impacting negatively on their health, their family, or their home. This is completely understandable, but in the interest of keeping on top of potential repercussions, the best thing you can do for yourself is to make sure that you’re covered in the unfortunate event that you need the insurance.
Always be sure of where you stand.
If you haven’t reviewed your covers in a number of years, or you are not sure what cover you have, come to Rethink to review your existing policies. As qualified and experienced insurance brokers, we will help you to choose where to allocate your money to best fit your circumstances. We’re always happy to help, so get in touch with our friendly team today!