Reviewing your insurance strategy is a solid investment

We’re all interested in reviewing the current status of our wealth creation plan to see how our investments are performing. Unfortunately however, reviewing our insurance strategy is often forgotten, as many of us adopt a ‘set and forget’ approach.

Do I still need my insurance?

If you've ever been involved in a car accident, had a flight cancelled, become seriously ill or had an injury that has kept you out of action for any length of time, you'll know how worrying these incidents can be. If you have insurance, the cost of repairs, medical treatments, travel changes or recovery treatment can be softened.

Insurance provides the money you need when things go wrong, and we all know that sometimes, they do.

When should I review my cover?

You should review your insurance strategy whenever there is a change in your personal or business circumstances. Changes in any of the following areas should prompt you to review your cover as they can impact the type and amount of insurance cover you need:

  • income
  • assets
  • debt levels
  • dependants
  • relationship status (for example marriage, divorce or a new partner)
  • occupation or employment status (for example if you become self-employed or employed)
  • health (improvements or change in health of you or your partner)

What if nothing has really changed?

You should still review your insurance strategy every year, even if nothing in your personal or business circumstances has changed. Intense competition in the risk insurance marketplace means that insurance providers are always looking for the ‘edge’ with their products, particularly to ensure they remain in the highest rated products.

This can often result in additional benefits, better policy definitions and the introduction of new additional options which can be of value to you if you need to make a claim.  While many insurers will automatically ‘pass back’ improvements in their policy definitions, this shouldn’t be assumed.

Where can I go for help?

It’s best to speak with us, your financial planner, as we specialise in helping you understand the details of any policies you have, or that you are applying for.

Source: IOOF

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