Should you review your insurance and protection in 2022?

What were your New Year resolutions for 2022? Have you kept up with that 5k run every Sunday, or have you managed to eat less chocolate?

Most of us make New Year resolutions that surround our physical and mental health, but not enough people make resolutions to benefit their financial health. One effective resolution relating to finance is to get on top of admin and review your financial products and investments.

If you currently have life insurance, critical illness cover or income protection, 2022 is the ideal time you review your policy?

Why should you review your policies?

You should review your policy because changes in your personal circumstances could affect your level of cover if they are not updated accordingly. There is a good chance that changes in your life could mean you no longer need the policy you have or need a different one. Or you may need the same policy but need to adjust the level of cover you have.

Some examples of life events that could require a policy review are:

1. Changing jobs, stopping working or retiring
2. Minor and major changes to your health – for better or worse
3. Having a child or children flying the nest
4. Marrying, separating or divorcing a partner
5. Living with a de facto partner
6. Changing your mortgage and additional borrowing

By not updating any new life events with policy providers correctly, you might not have the cover you think you have, which makes not reviewing your policy a potentially costly mistake. Moreover, many insurance companies have new products that were not available when you took out your cover, which you may be a better fit for and could be cheaper.

Some providers now offer additional benefits for free, such as access to health and nutrition professionals to encourage healthier living.

How do I review my cover?

You can review your insurance policy or cover by reading the agreement you signed, which you should have a copy of for your records. If you want clarification on any of the terms of your cover, it is best to speak with the insurance company directly or to speak with the insurance broker you used. They should be able to help you review your cover and consider alternative options that are suitable and beneficial. Before calling, make sure you have your policy number to hand.

I don’t have protection yet – help!

If you do not have life insurance, income protection or critical illness cover and want to know more, do not hesitate to speak with professional protection advisers at Euxton Mortgages. We can explain all of these policy types and assist you in choosing the right protection for your needs. Our diligent team can even help secure you a policy if needed.

Feburary 2022