By Brad Makivoy | October 8, 2017
Most of us have life insurance – probably right around the time we got married, had kids or got a mortgage.
Which is natural, it’s the stage in your life when safe-guards are most important, you have others and assets to look after.
The problem is that this where most people stop thinking about it too. This ‘i sorted it years ago’ attitude that has millions of Aussies overpaying year after year.
You see, your life insurance cover and premiums are based on a number of assumptions which are made at a single point in time.
For example, at 35, married with 2 kids who are in primary school, you’ll need enough insurance to cover for your children’s entire education along with your mortgage and income protection to reach until your retirement.
In just a few years, however, this can all change. At 40, your kids will now be in high school, with little education remaining, you’ll have paid off a significant amount of that mortgage (hopefully) and be a number of steps closer to retirement.
All these changes mean that your life insurance will no longer be adequate.
In fact, in this example, you’ll likely be paying significantly more than you should for cover that you don’t need – which is the case for most.
Have any of these changed since you originally took out your policy?
- Relationship changes: When you originally took out your policy were you married, or single? If either of these have changed, your cover and premiums will change because of this.
- Have you had a child since you first got cover? This will need to be reflected in your cover.
- Change of job or career: If your income has changed, this will need to be taken into consideration.
- Have you bought any new assets? Are these covered in your policy?
- Have you gotten older? Yes, age makes a difference to insurance premiums, less money to take into account until you or your partner reach retirement or other milestones.
If you haven’t reviewed your life insurance within the last year you are really doing yourself an injustice. Make it a yearly ritual to make sure you’re getting the right cover for your life and the not overpaying.
Fortunately, you can get started right here. Start by selecting your state to find the best deals on the market.