Review your protection: does your cover still fit?

Has your life outgrown your protection?

You may have arranged life insurance when you bought your home, started a family or changed jobs. But how much has changed since then?

Your income may have increased, your family may have grown, or you may have taken on new financial commitments. The protection you arranged could still be valuable, but does it meet your needs today?

Why reviewing your protection matters

Protection can help support you and your family financially if illness, injury or death disrupts your plans.

However, cover arranged years ago may no longer be sufficient. A larger mortgage, higher household spending or additional dependants could all increase the support your family would need. Inflation can also reduce the purchasing power of a fixed payout.

Equally, your needs may have reduced if you have repaid debts, built up savings or your children have become financially independent.

A review helps establish whether your cover remains suitable and affordable.

Do you have the most appropriate type of cover?

Repaying the mortgage could ease a significant burden for your family, but everyday bills would continue. Consider how your household would manage without your income or without the unpaid childcare and support you or your partner provide.

Different policies address different needs.

• Life insurance provides a lump sum or regular payments if you die while covered, subject to the policy terms. It could help your dependants repay debts and meet ongoing living costs.
• Critical illness cover usually pays a lump sum if you are diagnosed with a condition that meets the policy’s specified definition and severity requirements. It does not cover every illness or diagnosis. A payment could help cover bills or provide financial breathing space during recovery.

• Income protection can replace part of your earnings if illness or injury prevents you from working and you meet the policy’s claim requirements. Payments usually begin after an agreed waiting period and continue for the period specified in the policy.

You may not need every type of cover. The most suitable combination depends on your circumstances, priorities and budget.

When should you review your protection?

Marriage, separation, having children, moving home and changing jobs are useful prompts. Periodic reviews also help you account for changes in spending and responsibilities.

Check any workplace benefits, including sick pay and death-in-service cover. Understanding how much they provide, how long they last and whether they end when you leave can help identify gaps.

Don’t forget to review policy end dates and any beneficiary nominations or trust arrangements, too.

A review does not automatically mean replacing existing insurance. Your current policy may offer valuable terms, particularly if your health has changed. Replacement cover could cost more or include additional exclusions.

Before cancelling any existing protection arrangements, it may be helpful to ensure that any replacement cover is fully in place and that the differences between the policies are clearly understood.

Is it time for a review?

Your needs can change over time, so reviewing your protection can be an important part of keeping your wider financial plan up to date.

A Continuum adviser can help you assess your commitments, review existing policies and workplace benefits, and identify where changes may be appropriate.

If you cannot remember when you last checked your protection, speak to your adviser about whether it still provides the support you and your family need.

Call Continuum today.

This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any decisions about your protection planning.

In relation to critical illness cover, if premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.