Many people choose to protect their financial lives with certain types of insurance. Contents cover, house insurance if they own a property, perhaps insurance on their car and life insurance.
But as life happens, the need for insurance may increase over time.
Here are five scenarios in which you may find that your level of cover is no longer enough.
When children come along, they often bring with them a lot more responsibility and financial obligations for their parents. If you don’t own a house, you may not have any personal insurance policies in place – but the arrival of your first kid can be a good time to think about changing that. If you were suddenly not around, you’d want to still be able to provide for your children’s future and to help your partner adjust to a new financial reality.
If you already have life cover, children may prompt you to think about income protection insurance. Running a household on a bare-bones budget can be harder for a family than it would be for a single person.
If you go into business, it’s worth thinking about some additional cover. You might need key person insurance to cover you if someone important (perhaps you) could not continue to do their job, business continuity if you were not able to open your doors due to something such as a natural disaster or public disruption, indemnity or liability protection. Business owners have extra things to worry about, so it can make sense to seek cover for some additional scenarios.
The more debt you have, the more repayments you need to cover if you were not around or were not able to work. If you’ve recently taken on extra debt, you may need to look at the insurance you have in place to determine whether it’s still sufficient.
If your income has increased over time, it’s possible that your income protection policies might not have kept pace. If you never had such a policy, it’s worth considering one because the adjustment to being out of work could be even harsher for someone who’s used to earning big money. Until you have significant investments that could step in as required, income protection is a good backstop.
If there’s something unique about your house that would make it expensive to rebuild, you may need to get some more specialised guidance to ensure that your insurance would offer enough of a payout to rebuild your home should the worst happen.
It’s a good idea to review your insurances regularly to determine whether they’re keeping up with your life. If it’s been a while since you’ve looked at yours, please feel free to give us a call today.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek specialist advice.