Plenty of people sign up for cover in their twenties and never look at it again. It’s easy to see why. Work is busy, bills pile up, and nobody enjoys thinking about the worst. The trouble is that what you need at 25 looks very different at 40. Jobs change. Families grow. Debts get bigger. That’s why life insurance deserves a second look whenever something big happens. Here are the moments that matter most.
Getting Married or Moving In Together
Once you share a home, your money gets tangled up with someone else’s. There’s rent, a joint account, maybe a holiday fund. If you pass away, could your partner keep paying for all of it on one wage? Often the answer is no, at least not for long.
A few things worth checking:
- Who would be left with joint debts, such as a car loan
- Whether your partner could cover the rent or mortgage alone
- If the person you want paid is actually named on the policy
Sort these out early and the amount of cover you need becomes much clearer.
Having a Baby
Costs arrive fast. Nappies, childcare, a bigger car. Then come school trips, clubs and, if you’re lucky, university. That’s twenty years or more of spending to plan for.
Add these to your list:
- Education costs down the line
- Childcare and day-to-day bills
- Cover for a stay-at-home parent
The last one gets skipped a lot. Looking after children is a full-time job. If that parent were gone, the family would have to pay someone else to do it, and that adds up quickly.
Buying a House
A mortgage is usually the biggest debt you’ll ever take on. If you weren’t around, any outstanding mortgage would still need to be settled. A co-borrower may remain responsible for repayments, while the lender may recover unpaid dues against the mortgaged property. Many people match their cover to the size and length of the loan. It’s simple, and it keeps a roof over everyone’s head.
Prices move, though. If you trade up or remortgage for a bigger sum, your old cover may no longer stretch far enough. A quick check at that point is well worth doing.
Reaching Retirement
By now the mortgage might be gone and the children are earning their own money. You may need less cover than before. Some people still keep a policy to leave an inheritance, pay for a funeral or support a partner who depends on their pension. Others cut back and enjoy lower premiums. Both can make sense. Just make it a choice, not an accident.
How Often Should You Review Your Cover?
Every few years is a good rule. Do it after big changes too, like a divorce, a new job or a large pay rise. These can shift your needs as much as a wedding or a baby. A review can show gaps. It can also show you’re paying for more than you use. If the numbers confuse you, an independent financial adviser can talk you through the options.
Keep Your Cover Up to Date
Life moves quickly, and your life insurance needs to keep up. Marriage, kids, a home and retirement all change what you owe and who relies on you. A short check now and then keeps your family protected. Set a reminder in your diary today.