We’re all busy, right? Sometimes just knowing that you’ve got bills covered by setting up your bank accounts to automatically pay your mortgage, council rates and those other regular expenses gives you a peace of mind.
But what about those expenses that will inevitably vary as time goes by? Like your insurance.
Reviewing your insurance strategy is an often-forgotten activity, as many of us adopt that ‘set and forget’ approach outlined above.
When it comes to insurance, you should be regularly reviewing your policies to ensure that you are protected, and your coverage meets the needs of you and your family.
Here’s what you need to consider:
Do you still need insurance?
If you’ve ever been involved in a car accident, had a flight cancelled, become seriously ill or had an injury that has kept you out of action for any length of time, you’ll know how stressful these incidents can be.
If you have insurance, the cost of repairs, medical treatments, travel changes or recovery treatment can be softened. Insurance provides the money you need when things go wrong and, let’s face it, we all know that sometimes things can go dire.
When should you review your cover?
You should review your insurance strategy whenever there is a change for both your personal or business circumstances. Changes in any of the following areas should prompt you to review your protection as they can impact the type and amount of insurance cover you need:
- debt levels
- relationship status (for example marriage, divorce or a new partner)
- occupation or employment status (for example if you become self-employed or employee)
- health (improvements or change in health of you or your partner)
What if nothing has really changed?
You should still review your insurance strategy every year, even if nothing in your personal or business circumstances has changed. Intense competition in the risk insurance marketplace means that insurance providers are always looking for the ‘edge’ with their products, particularly to ensure they remain as the highest rated products.
This can often mean additional benefits, better policy definitions and the introduction of new additional options which can be of value to you if you need to make a claim. While many insurers will automatically ‘pass back’ improvements in their policy definitions, this shouldn’t be assumed.
It’s best to speak with your Bridges Lake Macquarie financial planner. They specialise in helping you understand the details of any policies you have, or that you are applying for. Contact us today!
Bridges Financial Services Pty Limited (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. This is general advice only and does not take into account your objectives, financial situation and needs. Before acting on this advice, you should consult a financial planner.