7 times in life to check your insurance

Big milestones in life are a great chance to celebrate, and we know almost nobody celebrates them by checking their insurance policies.

But while it may be second nature to arrange or change your house or car insurance, many people forget that changes in their life can have an impact on things like life and income protection insurance as well.

Taking a ‘set and forget’ attitude to your life insurances can cost you money, or put your financial wellbeing at risk – so here are a few good times to check your insurance.

1. When you buy a house

Buying a house is a major milestone that a lot of Kiwis work hard to achieve. But when you’re taking on a mortgage, or any other major debt, it’s a good idea to have a plan for that debt if you pass away or can’t work for a while.

2. If you have a baby

If you’re starting a family (or adding to it), you’ll probably be thinking about how to give your kids the best life you can. Updating or taking out life insurances can help to ensure that your children are taken care of, even if something happens to you – so it’s a good idea to check your insurances before your little one arrives.

3. If you start a business

Like with a mortgage, if you’re starting a business you might be taking on new debt, so it’s a good idea to have a plan for that debt if you pass away or are unable to work for a while.  

Asteron Life offers business insurance cover to protect your business or your income if a key employee gets sick or injured, so ask your adviser about what types of business cover might work for you.

4. If you get a new job

If you’ve just landed a new job, congratulations! Quite often new jobs mean a change in income – hopefully up, but sometimes down, for example if you wanted to change industry or work part time. 

Whatever the change or the reason, sometimes with a change in income your lifestyle will also change, so it’s a good idea to check that you can still afford the income protection you have in place, and that it’s still going to be sufficient if anything goes wrong.

5. If you pay down debt

Paying off your mortgage completely is a major cause for celebration – but even chipping away at it every year has an impact on your overall level of debt. 

Keep an eye on your mortgage (or other loans), because as your debt reduces you may wish to reduce your level of life insurance cover – and save yourself money in insurance premiums as well as bank interest.

6. If you get married (or divorced)

Congratulations (or commiserations) if you’ve hit either of these milestones! 

If you get married or divorced, you might not need to change your level of insurance cover, but it is a good idea to check who your policy owners and beneficiaries are and make sure that they are the ones you want. 

7. When your kids leave home

Whether you’re a sad or happy empty-nester (and probably it will be a bit of both), once your children reach independence it might have an impact on the amount of life insurance or income protection you want. 

The changes you make to your insurance will be personal to you and depend on other circumstances like your level of debt, but if you can reduce your cover a little, the savings in premiums might help you feel a bit more like celebrating, even while you’re missing your kids!

If you’re not sure what cover you need, a financial adviser can help. If you don’t have an adviser, we can help you find one.