Category: Life Insurance | Reading Time: 4 minutes

Taking out life insurance is a smart move—but it’s not a “set it and forget it” decision. Your life changes, and your cover should change with it. Here are the key moments when you should revisit your policy.

Getting married or entering a civil partnership

When you commit to sharing your life with someone, your financial responsibilities often merge too. If your partner relies on your income—or would struggle to maintain their lifestyle without it—it’s time to ensure your life insurance reflects this new reality.

This is also a good time to review who your policy pays out to. Updating your beneficiary details ensures the right person receives the payout.

Having children

Becoming a parent is perhaps the most compelling reason to review your life insurance. You’re now responsible for someone who depends entirely on you for their care, education, and future opportunities.

Consider whether your current cover would support your children through to adulthood. Factor in childcare costs, education expenses, and the everyday costs of raising a family. Many parents find their existing cover falls short once children arrive.

Buying a home or remortgaging

Your mortgage is likely your biggest financial commitment. If you’re buying a new home or remortgaging to a larger amount, check that your life insurance still covers the outstanding balance.

Moving home is also an opportunity to review whether your policy type still suits your needs. If you’ve switched from a repayment to an interest-only mortgage (or vice versa), you may need a different type of cover.

Changing jobs or starting a business

A new job might come with different benefits—or none at all. If you previously relied on employer-provided death-in-service cover, check whether your new role offers the same protection.

Starting your own business brings unique considerations too. You may need to think about key person insurance or ensuring your family could manage without your business income.

Divorce or separation

If your circumstances change through divorce or separation, it’s crucial to update your life insurance arrangements. You may need to change beneficiaries, adjust cover amounts, or take out new policies to reflect your new financial situation.

Paying off significant debts

On a positive note, if you’ve cleared your mortgage or paid off major debts, you might find you’re over-insured. Reviewing your policy could free up money in your monthly budget—or allow you to redirect those premiums toward other financial goals.

At Cover Direct, we recommend reviewing your life insurance at least every few years—and always after major life events. Get in touch today for a free, no-obligation review.

FAQs

Q1: How often should I review my life insurance?

A: We recommend reviewing your policy at least every two to three years, even if nothing major has changed. However, you should always review immediately after significant life events such as marriage, having children, buying a home, or changing jobs. Regular reviews ensure your cover keeps pace with your changing needs.

Q2: Can I update my existing policy or do I need a new one?

A: It depends on your insurer and policy type. Some policies allow you to increase cover at certain life events without new medical checks. Others may require a fresh application. In some cases, taking out a new policy alongside your existing one makes more sense than trying to amend it. Our advisers can assess your situation and recommend the best approach.

Q3: What happens if I’m now in worse health than when I took out my policy?

A: If your health has declined, your existing policy remains valid at its current premiums—you won’t be penalised for health changes that occur after you’ve taken out cover. However, if you need additional cover, new policies will be priced based on your current health. This is one reason why getting adequate cover early, while you’re healthy, is so important.

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Cover Direct is a UK-based life insurance broker dedicated to helping individuals find the right protection for their needs. We work with a panel of top insurers to offer a range of policies tailored to your circumstances.