Life cover is designed to provide your loved ones with essential financial protection when it is needed most. But it’s not just a one-off decision - your circumstances can change over time, and it’s important to review and update your policy regularly to ensure your cover remains suitable.
Buying a home
In a recent survey, 21% of UK life insurance policyholders said that they were prompted to get cover because it was a requirement for their mortgage. Even if your lender doesn’t insist on it, life insurance is a crucial consideration for homeowners. A suitable policy can help your family keep up with monthly repayments in the event of your death, giving you peace of mind that your loved ones are financially protected.
Getting married
If you’ve started sharing finances with a partner, it’s important to make sure you’re both insured if the worst happened. A joint policy covers two people – it’s often cheaper but usually only pays out once, so a surviving partner would need to take out a new policy. Also, it can be difficult to separate the policy if the relationship breaks down. If a couple takes out separate single life insurance policies, the surviving spouse will still be covered if their partner dies. Separate single policies ensure that each partner remains covered independently, so one surviving spouse won’t need to take out a new policy after a tragedy.
The birth of a child
Welcoming a child is a joyful milestone and it also brings significant financial responsibility. In the same survey, 30% of respondents said they got life insurance after becoming parents. Your cover should reflect the needs of your growing family, whether it’s your first child or additional children. Regularly reviewing your life cover ensures that your policy keeps pace with your evolving financial commitments.
Planning for the future
Life milestones aren’t the only reason to review your cover. Planning for later life, estate management, and potential tax implications are equally important. For example:
- Over 50s Life Insurance: This can help cover funeral costs or provide a guaranteed lump sum to loved ones.
- Writing Life Insurance in Trust: This can prevent the payout from being considered part of your estate, avoiding Inheritance Tax, and allowing beneficiaries to access funds before probate is granted.
Because these are legally binding arrangements, it’s important to seek professional advice to ensure your protection plan aligns with your wider financial strategy.
Here to Help
At Chrysalis Wealth Management, we can help you review your existing life cover or explore new options tailored to your needs and long-term plans. Don’t wait for life to change before taking action—reviewing your cover today ensures you and your loved ones are properly protected.
Take the first step today !
The Financial Conduct Authority does not regulate Inheritance Tax Planning and Trusts.
Sources:
https://www.forbes.com/uk/advisor/life-insurance/life-insurance-statistics
https://www.postoffice.co.uk/life-cover/guides/six-reasons-you-need-cover
