Term Life Insurance Reviews
It's nice to know you're covered. It's one of the reasons you took out Life Insurance in the first place. But does your cover still fit the way it did when you bought it? If you're not sure then its time you got a life insurance review.
It's easy to forget that your insurance needs change as your life does. Every time you increase the size of your mortgage, or your family, your financial commitments increase with it. Likewise, as your career or income changes, your term life insurance should reflect your changing lifestyle.
Life insurance protects your family
Generally speaking, your need for cover will increase as your family grows. As your family circumstances change, as your kids become financially independent, and as your other assets (like superannuation) become more sizeable, your level of cover may need to be reviewed.
Term life insurance is a lump sum paid to your beneficiaries or to your estate, so keeping your policy up to date is important in keeping your loved ones financially protected should the unforeseen occur.
New & enhanced policies
Life insurance products can also change. You may find there are new solutions that better suit your life today. Are you aware of existing features within your policy?
Many life insurance companies make product updates each year, so make sure you have the latest copy of your policy's relevant product disclosure statement (PDS). The PDS outlines the benefits and clauses of your policy. If you are unsure if your PDS is the latest copy, contact your financial adviser or life insurance company.
What prompts a policy review?
If your circumstances have changed recently you should conduct a life insurance review. Some life changes that should prompt a term life insurance review include:
- Marriage;
- Children;
- A dependent child starting secondary school;
- Mortgage;
- Personal loans;
- Job promotions; and
- An increase in other sources of income such as investments.
How can I keep my policy up to date?
One good way to keep your term life insurance policy up to date is to review it yearly when you get your tax done. It's a time of year where you are thinking of your finances, so it makes sense to take the extra time to look over your term life insurance too. Alternatively, you can also review your term life insurance policy when you receive your renewal notice.
If it's been a while since you had a review of your cover, it might be worth making an appointment with an xLife adviser. xLife offer FREE term life insurance reviews, and also offer a free ongoing annual term life insurance policy review service.
Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's life insurance premium.
June 2010
