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Let’s be honest, there are a lot of different insurance cover options out there. Whether it’s Personal Insurance like Life Insurance and Funeral Cover, or Business Insurance, the variety of cover options may seem confusing. However, a range of options can play in your favour. Variety means insurers like Cigna Insurance can tailor a policy to your unique life situation. But how do you understand which Life Cover is right for you? What small business insurance do you may need? And what is the right level of Life Insurance for your family? Understanding insurance cover can seem tough to get your head around, but you can better understand with a bit of research, self-assessment, and talking with an expert.

This guide will equip you with what you need to know to assess what insurance cover you may need.

Let’s go!

When is the best time to assess your cover options?

There is never a wrong time to assess what Life Insurance cover you may need. In saying that, there are certain milestones in life when it can be particularly beneficial to consider your insurance cover options. These significant events in life may often coincide with big changes to your personal or financial situation.

Changing a job

Whether you’re getting a pay increase or decrease, getting a new job can be an excellent time to assess your cover options. Changes in your new role that may affect which insurance cover options are best for you include:

  • The risks involved with your new gig

  • Your change in salary

  • Your new place of work may have a membership discount with your insurer

Starting a new role may be exciting and stressful at the same time. Helpful cover options to consider may include Income Protection Insurance or Trauma Cover.

Getting married

Marriage can be one of the most exciting times in your life. So much so, it may be easy to get caught up in the moment and forget about the importance of your insurance cover. But considering Life Insurance options when getting married can provide you peace of mind that your future together is protected. Aspects of marriage that may affect which cover options you need include:

It’s often recommended that both people in the marriage have their own Life Insurance policies, as each person will have their unique personal history. Read our guide on saying ‘I do’ to Life Insurance - how much cover do married or de facto couples need for more insight.

Buying a house

Whether you’ve recently purchased a property or are about to, buying a house can be a helpful time to assess your insurance cover options. For most people, a property is their largest investment. So, it can be well worth making sure you have the best suitable insurance cover options to meet the commitments of your mortgage. Reasons buying a house may affect which cover you choose include:

  • The size of your new mortgage

  • How many incomes will be responsible for making mortgage payments

  • How many people will be living in the house

 Buying a house is an exciting time. But it can be important not to forget about your insurance. Read our buying a house checklist for more advice on considering Life Insurance when buying a home.

Having a child

Chances are that a newborn baby will give you a different perspective on life in general, not just when it comes to insurance. Life Insurance can offer you peace of mind knowing that your wee one will be looked after should something ever happen to you. Having a child can affect which cover options you choose in various ways, including how large your family is and potentially going down to one income in the early stages. Read our guide on Life Insurance and Blended families for more considerations on protecting your family with insurance.

Retiring

One of the main reasons for Life Insurance can be to protect loved ones that rely on your income should you pass away. When you’re retired, you probably won’t be earning much. However, you may still carry debt which is where a form of Life Cover could still help.

Assessing your insurance cover around the same time as life milestones can be a handy way to ensure your insurance is always up to date. Read our helpful guide for a more in-depth look at when you should review your insurance policies.

What’s the difference between personal and business insurance?

When assessing what kind of cover you may need, it can be essential to understand the difference between the types of insurance available to you. Each type of Cigna Insurance comes with varying options for cover.

Personal Insurance

As the name suggests, Personal Insurance is insuring yourself so that your loved ones are looked after if something ever happens. Cigna offers three main personal cover options to make it easier for you to assess what cover you need, including:

  • Life Insurance

We’ve touched on the benefits of Life Insurance already, but it’s cover that can give you and your family peace of mind. Life Insurance has different cover options to suit your unique living situation.

  • Funeral Cover

If you were to, unfortunately, pass away, Funeral Cover can offer a lump sum to help your loved ones with funeral costs.

  • Income Protection

Sometimes known as Income Cover, Income Protection Insurance can pay you a monthly amount to make up for your loss of income if you were to become disabled due to an illness or injury. There are various benefit options within Income Cover to suit your unique situation.

Top tip: Life Insurance can also be beneficial if you’re single. Check out our guide that explores Life insurance for single people.

Business Insurance

If you’re lucky enough to run your own business, it can be important to protect it with Business Insurance. Cigna offers three main insurance products to make it easier to assess what business cover you may need, including:

Choosing between these products will depend on your industry and budget. Within these products sit a range of cover options like:

Understanding the key differences between Personal Insurance and Business Insurance can be a great place to start when assessing your cover. Read our guide that explores the differences in more depth.

Questions to ask yourself when considering insurance cover

Although it’s often easiest to talk with an Independent Insurance Adviser when assessing what insurance cover you need, it can be helpful to start by asking yourself a series of questions. Many of these examples will also be asked by your adviser, so this is also a handy way to be prepared.

1.     Who is relying on your income? 

If something were to happen to you, who would your loss of income negatively impact? Perhaps your young children or elderly parents rely on your income to get by? Considering who relies on your income can help you determine how much cover you may need to ensure your loved ones are looked after.

2.     How much cover can you afford?

It’s all well and good saying that you want to be covered for anything and everything, but you’ve got to be able to afford your insurance cover too. Considering how much cover you can afford and how much you could afford if you budgeted adequately can ensure you only take out insurance cover within your means. A budget planner can be a helpful tool when planning your finances.

3.     What debt do you have?

If something happened to you, what debt would be passed on to your loved ones? Unfortunately, many types of debt wouldn’t just disappear if you passed away, including your:

  • Mortgage

  • Student loan

  • Personal loan

Taking stock of your debt can help you determine the amount of cover you need to make sure your family don’t have to foot the bill.

4.     How healthy is your lifestyle?

Considering your health can be important when picking your insurance cover. When thinking about your health, consider more than just how often you have takeaways, like:

  • How often do you exercise?

  • Do you have any ongoing illnesses or injuries?

  • Do you have a family history of a particular illness?

 The answer to these questions could all impact how much cover you need and your premium. There are online resources to help you maintain your overall health and wellbeing.

5.     What are the biggest risk factors in your life?

When it comes to insurance cover options, what cover you need and your premiums may be heavily impacted by risk. Are you a thrill-seeker? Is your line of work dangerous? These factors could all impact which cover is best suited for your situation.

Benefits of talking with an Independent Financial Adviser

When it comes time to assess what insurance cover you need, one of the easiest places to start can be talking to an Independent Insurance Adviser. An adviser will go over an in-depth series of questions so that you can make intelligent decisions when it comes to your cover. They’ll help you break down insurance jargon to help you feel confident in understanding the ins and outs of your policy. Read our guide with tips on how to pick the right Independent Insurance Adviser fit for you.

Want to learn more about the different types of cover available?

The ability to properly assess what insurance cover you need can be essential, so you choose the best options for your unique situation and also so that you’re not paying for cover you don’t need. Asking yourself a series of questions is a great place to start. Otherwise, it can be beneficial to talk to an Independent Insurance Adviser. They can offer assistance with personal insurance and business insurance.