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While you may not like to think about it, it’s important to have plans in place in case the unexpected should ever happen. This is where having protection can help you, as it can act as a financial safety net for when you need it the most. Of course, when your lifestyle changes, your requirements for cover may change too. For example, if you get married, you may want to update your life insurance to reflect this. If you want to gain the peace of mind that you can overcome any issues that the future may bring, read on for three important reasons to review your protection now.
1. You may be paying more than you need to
When it comes to your insurance premiums, providers will typically consider factors such as your health and occupation when working out how much your cover will cost. If you work in a dangerous job or have a history of poor health, you may have to pay more for your protection. According to Unbiased, some of the most common factors used when calculating your premiums include:
- Your age
- Your height and weight
- Whether you smoke
- Your lifestyle (such as your diet or how much you drink)
- Your medical history.
While you can’t change some of these, there are factors that you can do something about. For example, if you give up smoking or increase your amount of regular exercise, you could save money by reviewing your cover. Likewise, if you move to a less dangerous profession, such as from forestry to an office job, you will pose less of a risk to your insurer. As a result of this, the cost of your premiums may fall. At a time when many households are feeling the squeeze due to the cost of living crisis, reviewing your cover can help you to save money.
2. You may not have the right cover for your needs
As your lifestyle changes, your existing protection policies may no longer suit your needs. This is why reviewing your cover regularly can help to ensure that you’ll be protected if the worst were to ever happen. According to a study by Legal & General, the most common time for people to take out financial protection is when they reach a major life milestone. It isn’t hard to see why, as making sure you have adequate cover can give you more peace of mind when entering a new chapter of your life. The most common life events which prompted people to seek protection include:
- Having children
- Getting married
- Moving home
- Changing job
- Separating or divorcing from a partner.
If you don’t regularly review your cover, you may run the risk that any payout you receive isn’t enough to cover your needs. For example, if you took out a life insurance policy before you had children, if you passed away then the payout may not be enough to maintain your family’s lifestyle. Alternatively, if you’ve started a more dangerous job, you may want to consider taking out income protection or critical illness cover. This is because your risk of being injured and unable to work is higher and this could negatively impact the financial wellbeing of your loved ones. When your life changes, working with an expert can help you to assess how your protection needs may have changed too, to ensure that you’re covered against any unexpected problems.
3. You may be able to benefit from higher-quality cover
The third and final reason why you should review your protection needs now is that you may be able to benefit from better quality protection. This can give you greater peace of mind as you’ll know you’re protected against any unexpected problem. For example, some insurers may now include a wider range of illnesses and conditions under their income protection or critical illness cover. Alternatively, they could have since added additional benefits to their cover since you took yours out. While older policies can still be useful, you could find that you can obtain more comprehensive cover now. If you want to ensure that you’ve got the most suitable cover for your needs, it can be useful to regularly review your protection. Just remember never to cancel any existing cover until new protection is in place. Speaking to a financial professional can help you here, as they have more in-depth knowledge about the different types of protection that are available on the market. When you work with us, we can make sure you have the right cover for your needs, without having to pay any more for it than necessary.
Get in touch
If you want to gain more peace of mind through knowing that you’re fully protected against the unexpected, we can help. Email us at office@verve-financial.com or call 0330 320 5048.
