How to assess what insurance cover you need

When the best time to assess your cover options?

There's 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.

1. 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
• any change in salary
• your new employer may have an employee 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

2. 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. Potential aspects of marriage that may affect which cover options you need include:
 

• new living situation
  
• joint finances
• planning for your family to grow
• updates to your will, which often happen when you get married. 

It’s often recommended that both partners have their own life insurance policy, as each person will have their unique needs. Read our guide on saying ‘I do’ to life insurance - how much cover do married or de facto couples need for more insight.

3. 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. Things to consider 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's important not to forget about your insurance. Read our buying a house checklist for more advice on considering life insurance when buying a home.

4. 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.

5. 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 help 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.