Key signs that it is time to review your life insurance policy

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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, updated on June 6th, 2023       

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A life insurance policy is an investment that is created to protect your loved ones’ financial future. However, using the set and forget method of getting a policy can cost you in the long run. Here are five signs that it is time to review your life insurance policy and get the best value from it.

Your personal circumstances have changed

It safe to say that your life will keep on changing and go through stages until you die. This could be in the form of you becoming committed to a relationship, having a baby, having a child that goes to varsity, you start taking up a sport to stay healthy and many other changes. As the new commitments pile up in your life it is vital to check if your policy will still adequately cover your loved ones’ lifestyle if you were no longer around.

You are not getting your money’s worth

If you feel that you are forking out more money on a policy that doesn’t offer you the benefits and cover that you need, then it’s time to switch up. Thankfully, the Australian life insurance market is one that is competitive, which means that you will be able to get the best deal by comparing your option. Depending on your age you can pay an average of $23 a month for cover. You can speak to an insurer or a broker that can give you a policy that offers benefits that are suitable for your personal circumstances.

Change in financial commitments

When you compare your financial commitments from three years ago to where you are now, it is clear to see that you have gained a few new financial commitments. It could be things such as having a car loan, a mortgage, paying off a student loan, credit card payments, or having a baby. Therefore, checking if your life insurance can adequately cover these new financial commitments is essential. You also can consider changing your policy if you start earning more to get a policy with better coverage.

Is the type of cover you have still adequate?

Reviewing your policy can also help you see if you have a cover that will adequately cover you. Some Aussies may start out with a basic cover such as income protection or even take out a cover through their superannuation policy.

However, when you start expanding your family such as getting married, having a baby, or starting a job that comes with increase risked of you getting injured or falling critically ill then it’s time to review your policy. You can choose to upgrade to a life insurance policy that will help adequately various aspects of your life while you are still living and when you pass on.

Will adequately cover your spouse?

There are many unforeseen circumstances that can make your life feel like the carpet has been ripped from underneath you. Ensuring that your spouse is covered for such events is vital. Losing a spouse to injury or illness can have an emotional and financial strain.

Therefore, it is vital that they too have a life insurance policy. You can consider taking out a joint life insurance policy to cut down on premium costs, but make sure to check that it comes with features that are suitable for your circumstances.