10 life events that may necessitate a review of your long-term insurance

With the fast pace of life, it’s easy to lose track of how quickly one’s personal and financial circumstances evolve.

With September being life insurance month, now is an opportunity time to review the long-term insurance cover that you have in place. With the fast pace of life, it’s easy to lose track of how quickly one’s personal and financial circumstances evolve – with many life events being triggers for adjusting one’s insurance cover either upwards or downwards.

In this article, take a look at 10 life events that could prompt the need for a risk cover review.

  1. Changing employment: A move from one employer to another will no doubt necessitate a risk cover review as it’s likely that the group benefits offered by your new employer will be different from those you previously enjoyed. This is an excellent time to establish what life, disability (lump sum or income protection) and/or severe illness benefits your new employer offers and whether any shortfalls exist in your risk portfolio. Remember, any cover shortfalls can be addressed by taking out personal insurance cover, although this cover is likely to be more expensive as you will be individually underwritten. As such, it generally makes sense to first maximize the group cover offered by your employer and then top-up any shortfalls using personal insurance. Remember to obtain confirmation of your new group cover benefits before signing your contract of employment.
  2. Getting a salary increase: An adjustment to your salary may also prompt a review of your insurance cover for several reasons. First, group life and capital disability cover are often expressed as a multiple of your annual income which means that a salary increase will result in increased life and lump sum disability cover. Secondly, group income protection is generally expressed as a percentage of
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