Life is constantly changing, and so are your financial and personal circumstances. That’s why it’s essential to regularly review your insurance policies to ensure they still meet your needs.
Whether it’s life insurance, income protection, critical illness cover, home insurance, private medical insurance, or redundancy insurance, keeping them up to date can make all the difference when you need them most.
Why Reviewing Your Insurance is Important
Your insurance policies provide financial protection against unexpected events. However, if your circumstances have changed since you first took them out, you may find that your current cover is no longer adequate or that you’re paying for something you don’t need. Regularly reviewing your policies can help you:
- Ensure your level of cover matches your current lifestyle and financial obligations
- Identify potential savings if better deals are available
- Avoid being underinsured or overpaying for cover you no longer need
- Make sure your policy terms are still relevant to your circumstances
How Often Should You Review Your Policies?
Review vs Renew
Firstly, it’s important to know that there is a difference between reviewing a policy and renewing a policy.
Renewing involves an expiry date (usually annually) where the policy needs to be set up for another period of time – usually twelve months.
Reviewing is making sure that a policy still remains fit for purpose and suitable for your needs.
Some policies are renewed annually so the premium is likely to change. These include –
- Home Insurance
- Private Medical Insurance
- Redundancy Cover
Other policies are not renewed annually with premiums tending to be fixed for the term (unless you have what are known as ‘reviewable’ policies or those that include ‘index-linking’ options – check your policy documents). These include –
- Life Insurance
- Income Protection
- Critical Illness Cover
Life Insurance
A general rule of thumb is to review your life insurance policy every 12 to 24 months or whenever a significant life event occurs. Events that should trigger a review include:
- Getting married or entering a long-term relationship
- Having children or expanding your family
- Buying a home or taking on a new mortgage
- Changes in employment, such as salary increases or new job benefits
- Paying off significant debts
- Changes in health that may impact your coverage needs
Income Protection Insurance
Income protection insurance provides financial support if you’re unable to work due to illness or injury. It’s advisable to review this policy annually or whenever your income changes significantly. If you’ve had a pay rise, changed jobs, or moved from employed to self-employed status, you’ll want to make sure your cover still provides adequate support.
Critical Illness Cover
Critical illness policies pay out a lump sum if you’re diagnosed with a serious illness. Review this policy every couple of years or when you experience life changes such as:
- Changes in your health or family medical history
- Taking on new financial commitments (e.g., a mortgage)
- Marriage, divorce, or the birth of a child
- Increased living expenses that may require a higher payout amount
Home Insurance
Home insurance, including buildings and contents cover, should be reviewed annually to ensure your policy reflects the true value of your home and possessions. Consider updating your policy if:
- You’ve made home improvements, such as extensions or renovations
- You’ve purchased high-value items like electronics, jewellery, or furniture
- You’ve changed security measures that could affect your premium (e.g., installing an alarm system or smart locks)
- You’ve switched from renting to owning, or vice versa
Private Medical Insurance
Health insurance should be reviewed annually, especially as policies, premiums, and coverage options can change. Things to consider when reviewing your private medical insurance include:
- Changes in your health or medical needs
- Adjustments in premiums or excess amounts
- New treatments or services covered by alternative providers
- Employer-provided health insurance options
Redundancy Insurance
Redundancy insurance provides financial support if you lose your job unexpectedly. Review this policy annually, particularly if your employment status or financial situation changes. Key review triggers include:
- A change in job security or industry outlook
- A shift from employed to self-employed status
- An increase or decrease in salary
- Changes in household income or financial responsibilities
How to Review Your Insurance Policies
- Check Your Coverage – Review your policy documents to ensure your cover is still suitable for your needs.
- Compare Policies – Shop around to see if there are better deals available or if a different provider offers more competitive terms.
- Speak to an Expert – An Adviser can help assess your coverage and suggest changes to ensure you have the right level of protection.
- Update Your Details – Ensure your insurer has the most up-to-date information about your health, job, and financial status to avoid any issues with claims in the future.
Final Thoughts
Regularly reviewing your insurance policies ensures you stay adequately protected without overpaying for cover that no longer suits your situation. Whether it’s an annual review or a reassessment following major life changes, taking the time to keep your policies updated can save you money and provide peace of mind.
