Spring is finally here! As the flowers bloom and the days grow longer, it’s the perfect time to throw open the windows, declutter your home, and tackle those long-overdue chores. But spring cleaning isn’t just about tidying up your living space—it's also an ideal time to refresh your financial health, including your insurance cover.
Just like your home, your insurance policies need regular maintenance to ensure they’re still working for you. Life changes quickly, and if you’ve experienced major events over the last year—like moving house, having a baby, or changing jobs—your current cover may no longer meet your needs. An annual insurance review is a simple yet effective way to make sure you and your loved ones are properly protected, no matter what life throws at you.
Why You Should Review Your Insurance Annually
Most people buy insurance and then forget about it, assuming their cover will always be enough. But life evolves, and so do your financial obligations. Reviewing your insurance policies once a year can help you spot gaps in your cover or uncover savings you didn’t know were available.
Here are the top reasons why an annual review should be part of your spring cleaning routine:
Life Changes Affect Your Cover Needs
Major life events such as getting married, having children, buying a home, or even getting a new job can significantly impact your insurance needs. For example, if you've recently welcomed a baby, your current life insurance policy might not provide enough cover to support your growing family if the unexpected happens. Similarly, if you've taken on a mortgage, you may need additional cover to ensure your home is protected.
Regularly reviewing your policies ensures they reflect your current life stage and responsibilities. If your circumstances have changed, it’s important to adjust your cover accordingly to avoid being underinsured. Not sure where to start? Visit our Personal Insurance page to explore options that can better protect you and your loved ones.
Your Income May Have Increased
If you’ve had a pay rise or started earning additional income, such as through a side hustle, your financial commitments have likely grown too. You might now need more income protection or life insurance to cover those additional expenses and lifestyle changes. Likewise, if you’ve started saving more or made big financial investments, it’s worth ensuring your insurance policies reflect these new circumstances.
An annual review helps you assess whether your current cover is still enough to match your higher income and evolving financial goals.
Your Health May Have Changed
Over the past year, you may have faced health changes that could affect your insurance policies. If you've experienced significant health issues, it's essential to review your health insurance cover to ensure you’re fully protected for future treatments or specialist care. Conversely, if you’ve made positive changes to your health, such as quitting smoking or losing weight, you might now qualify for lower premiums, saving you money.
Ensure You’re Not Overinsured
While being underinsured is a risk, it’s also possible to be overinsured. If you’ve reduced debt, paid off your mortgage, or no longer have dependents who rely on your income, you may not need the same level of cover as before. An annual review gives you the chance to adjust your cover downwards if necessary, freeing up extra cash to be used elsewhere in your financial plan.
The Different Types of Insurance to Review
When you start your spring financial clean-up, there are a few key insurance types to review. These include:
Life Insurance: Do you have the right amount of cover to provide for your loved ones in case of death? Have your circumstances changed, such as new dependents or a mortgage?
Income Protection Insurance: Does your policy still cover enough of your income if you become unable to work? Have you changed jobs or started earning more income?
Health Insurance: Are you covered for the treatments you may need, or could your premium be reduced if your health has improved?
These core insurance types play a significant role in protecting your financial wellbeing. To ensure your policies are up to date and reflect your current situation, consider speaking with a financial adviser. They can offer expert advice tailored to your individual needs and help you adjust your cover where necessary.
Speak to an Expert for the Best Results
It can be tempting to simply renew your existing insurance policies without giving them much thought, but speaking to an expert can help you avoid being underinsured or paying for cover you no longer need. A financial adviser can guide you through your current policies, explain any gaps, and recommend the best coverage for your circumstances.
They can also help you understand if you're eligible for any new discounts, ensuring you're not paying more than you need to. Ready to get started? Visit our Get Started page to begin your insurance spring clean.
The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.
Comments