When should you review your insurance cover?
Many people put insurance in place at an important point in life. It may have been to protect a new mortgage, support a growing family, safeguard their income, or provide financial security for the future. The challenge is that life does not stand still.
Over time, income can change, debt can be reduced, career opportunities can arise, children grow up, and retirement starts to come into view. While your circumstances may have changed significantly, your insurance cover may still look much the same as it did years ago.
Reviewing your insurance cover every year can help ensure it still reflects your current situation and the reason it was originally put in place.
What can change in life that may trigger an insurance review?
It may be worth reviewing your insurance if you have:
- Purchased a home
- Started or grown your family
- Changed jobs or careers
- Received a significant increase in income
- Reduced or paid off debt
- Started a business
- Experienced a change in health
- Approached retirement
- Not reviewed your insurance for several years
Reviewing your insurance doesn't always mean increasing your cover
Many people assume an insurance review means buying more cover. In reality, a review may confirm that your current arrangements are still appropriate. In some cases, it may identify cover that is no longer needed. In others, it may highlight areas where your protection no longer aligns with your circumstances.
An insurance review can also be a useful checkpoint for your broader financial wellbeing. Sometimes clients discover they are making great progress towards their goals. Other times, it highlights opportunities to improve their overall financial position or better prepare for the next stage of life. The insurance conversation is often just one part of a much bigger picture.
The goal is simply to ensure your insurance continues to support the purpose it was intended to serve.
Common financial advice FAQs
How often should I review my insurance?
It’s worth reviewing your insurance every year, but also whenever a major life event occurs, such as buying a home, starting a family, changing jobs, reducing debt, or approaching retirement.
Does reviewing my insurance mean I need to make changes?
Not necessarily. A review may confirm that your existing cover is still suitable, or it may identify areas worth considering.
What if I haven't reviewed my insurance in years?
Many people arrange insurance and then leave it unchanged for long periods. A review can help ensure your cover still reflects your current circumstances.
How do I know if my insurance still fit my needs?
Book a review with a financial adviser. A review is not just an opportunity to check your cover. It’s a chance to understand how your insurance fits within your wider financial position and whether you’re still on track for your goals, whatever stage of life you’re currently in.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
