The best type of life insurance will change as you do – are you still up to date? Life is unpredictable but that’s why we should all have life insurance. It’s a great way to create a financial safety net for our family.
Still, the best type of life insurance will grow with you, adapting to all the seasons of your life. So, as we head into the new year, take a little time to review your life insurance policy and ensure it’s up to date. Here are just a few circumstances that might inspire a little tweak.
Consider The Effects Of Inflation
A quick trip to the supermarket or any petrol station is a rude reminder that the cost of living is rising at a rapid pace. If you have a life insurance policy with MiWayLife, you’ll be glad to know that the cover amount increases annually by 5%, but is it still beating inflation? Consider all the things you’d like your lump sum payout to cover, things like the cost of daily living or even a larger goal, such as your children’s education, and ensure that amount is still adequate today.
Reassess All Your Debts
The one positive about debt is that we can eventually pay them off. Perhaps at one point, you selected a large amount of coverage to help your family pay for something you owed money towards, such as a car or house. If any of these have been paid off, or if you’ve made a large dent in the amount that you owe, you might want to consider reducing your coverage amount. Or not – if you can still afford to maintain a higher amount of coverage, it’s always better to have more. As we’ve said, life typically gets more expensive as the years roll on.
Reconsider Your Beneficiaries
You’d be surprised by how many people get divorced and delay removing their ex-partner from their life insurance. If this is the case for you, you might want to reassess who you’ve listed as your beneficiaries. The same should go for any new additions to your family. The birth of a child might inspire a new beneficiary or a change in coverage. The same goes for any beneficiaries that might have passed away, such as an elderly parent or relative.
The state of your health has a direct impact on your life insurance premiums. This is why it’s a good idea to invest in a life insurance policy while you’re young and healthy – to enjoy a lower premium. Still, if you have a chronic illness such as diabetes or HIV, this doesn’t mean you can’t get a life insurance policy, only that your premiums will typically be a little higher. However, if you can prove that you’re managing your health well, this could lead to lower premiums, making an annual review a potential opportunity to reduce your expenses.
Re-familiarise Yourself With The Fine Print
Every life insurance policy will come with terms and conditions. If you’re taking the time to review it, consider reading those again too, particularly the exclusions. As an example, coverage is excluded for travel to certain countries that are deemed high risk, such as Afghanistan and Syria, and these will change from time to time. Also, if you pass away while taking certain drugs that aren’t prescribed by your doctor, this could see your life insurance claim denied. If any of this comes as a surprise, it’s definitely time to re-read your policy’s fine print.
The Bottom Line
At the end of the day, an annual life insurance policy review will help ensure you always have adequate coverage, and are remaining within the terms and conditions of your policy and that your family’s financial future remains secure. No life insurance policy? Let’s change that today!
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
