Reviewing your personal insurance policy

- when, why and how

Insurance might not always be top of mind, but it’s important to review your policies regularly to make sure you’ve got the right cover.

Whatever your mix of cover — life, total and permanent disability, income protection and trauma — insurance can be an important part of protecting yourself and your family, now and into the future.

Thanks to the ability to pay for insurance through super, an estimated 94 per cent of working Australians have some level of life cover. So it’s a good idea to review your insurance regularly to make sure you have the right type of cover—and enough of it.

You probably don’t think about your insurance regularly, but there are certain times when you should consider updating your policies to make sure they still reflect your lifestyle and insurance needs.

When and why you should review your insurance

Insurance works best when you have the right level of protection for your situation and as your life changes, so might your insurance needs. You should consider reviewing your cover whenever your situation changes, like:

  • taking on a mortgage to buy a property
  • having children
  • getting married
  • upsizing or downsizing your home
  • getting a pay rise or take a pay cut
  • starting a business
  • experiencing a change in your health or lifestyle
  • paying off your mortgage
  • stopping supporting financially dependent children
  • joining a new super fund that may provide automatic insurance cover
  • retiring

These milestones mark important times to review your insurance, including the amount of cover you have and whether your beneficiaries (those who will receive your insurance in the event of your death) are up to date.

Insurance is flexible and can be changed to align to your needs.

To help you work out the right level of insurance cover, we consider the following questions.

  • How much money would your family have if you were to pass away or become disabled? Consider the amount of money you have in super, savings, shares and other assets, and existing insurance policies as a starting point.
  • How much money would your family need if you were to pass away or become disabled? Consider the size of your mortgage and any other debts you have, as well as other costs such as childcare, education and day-to-day expenses you may be covering.

The difference between these figures should provide some guidance on the amount of insurance cover you may want to have. However, you might need to compromise between what you’d like and can afford. We have access to an insurance needs calculator that can help crunch the numbers, and you can always ask for further insurance advice.

Like many Australians, you may have insurance through super. So, it’s a good idea to check this against other policies you might have outside super.

We can compare your cover, check whether you have any insurance double ups – if you have more than one super account with the same type of insurance, you may be paying for more insurance than you need.

Something to note on your income protection insurance, you’ll most likely only be able to claim up to 75% of your pre-disability income, regardless of whether you have income protection cover within multiple super accounts.

To make sure you’re getting the best deal, we compare providers. Remember, there are other considerations to take into account aside from reduced premiums, such as what level of cover you get, any exclusions (like the treatment of pre-existing medical conditions) and waiting periods.

Changing your insurance policy can be complicated. Call us today to arrange a complimentary, no obligation appointment to discuss having your insurances reviewed.

* Source: AMP