7 Life Events That Mean It's Time to Review Your Insurance
Insurance isn't "set and forget". The cover that suited you five years ago may leave gaps today, or you may be paying for cover you no longer need. These seven life events are the perfect prompt for a quick review.
1. Buying a home or refinancing
A new or bigger mortgage is the most common reason cover falls behind. Check your life, trauma and mortgage repayment or income cover still match what you owe. See our first home buyer checklist.
2. Getting married or moving in together
When finances become shared, so does the risk. Make sure each partner's cover reflects the household's combined commitments, and update the beneficiaries or policy owners where needed.
3. Having a baby
A new child means years of costs ahead, and often a drop in income while one parent is at home. It's a good time to increase life cover and look at children's trauma options.
4. Changing jobs or going self-employed
A new role can change your income, sick leave and any cover provided by your employer. If you're going out on your own, income protection becomes even more important, and the type of policy you choose matters.
5. Separation
A tough time, but an important one to get right. Policy ownership, beneficiaries and the amount of cover may all need to change to reflect your new situation.
6. Paying down debt or kids leaving home
As the mortgage shrinks and children become independent, you may be able to reduce some cover and save on premiums, while keeping the protection that still matters.
7. Health or lifestyle improvements
Quit smoking? Many insurers offer non-smoker rates after you've been smoke-free for a set period. Other changes, such as a medical exclusion that no longer applies, may also be worth asking about.
Before you change anything: Never cancel an existing policy until any replacement is fully approved. Your current policy may cover conditions that a new insurer would exclude.
How often should I review?
We recommend a quick check every year or two, and any time one of the events above happens. A review doesn't have to take long, and it often finds savings as well as gaps.
Already have cover with us? Just give us a call. Insured elsewhere? We're happy to look over your current policies and give you an honest second opinion, free of charge.
Want a second opinion on your cover? Book a free, no-obligation chat with AFA Insurance. We compare policies from a range of New Zealand insurers and explain your options in plain English. Call 021 985 218 or book online.
This article is general information only and is not personalised financial advice. It doesn't take into account your objectives, financial situation or needs. Policy features, definitions and limits vary between insurers and change over time, so always read the policy wording and talk to an adviser before making a decision. Financial advice is provided by AFA Insurance advisers under the licence of Certainty Financial Advisers Network Limited (FSP677951).