You might regularly review or change your car or home insurance policy. But is it worth doing the same with your life insurance?
Perhaps you want to adjust your cover and are wondering if you should change your insurer while you're at it. Before taking that step, here's what to consider.
Should you review your cover?
A life insurance policy can protect you for years, so you'll want to make sure that your cover reflects any big life changes since you first applied, and your premiums stay affordable.
It's a good idea to review your life insurance regularly. Over time, families and finances change, and the amount of cover you have should be in step with how much protection you need for the people who are financially dependent on you.
Here are some key life changes, and how they might impact the cover you need:
- If you've had more children, or a first child, since you applied. The amount of cover you have may need to be increased to reflect the financial responsibility that this brings
- If you've extended the length of your mortgage term since you first applied, perhaps to lower your repayments. You might want the term of your cover to be extended, to reflect this
- If you've moved or made major home improvements and have a bigger mortgage. You may want to increase the amount of cover you have, so overall the lump sum would be enough to pay it off if you pass away during the term of the policy
How do you get more cover?
The first step might be to call your existing provider and ask for a new or additional policy with them.
If your policy is with us, you can get a quote online in a few minutes to see what your premiums might be with a different policy and increased cover amount. Or you can give us a call on 0800 068 6800.
For an online quote, make sure you have your contact details and recent health information to hand. If you call us, you will also need your existing policy number.
What to consider before switching
Increasing the amount of cover you have is likely to increase your premiums, but there are a few other things to think about before you make this change:
- You won't be transferring your policy to a new provider; you'll be getting a new policy in addition to the one you already have, or cancelling your existing policy and taking out a new one. So you'll need to go through the same kind of questions as when you took out your current plan
- Taking out life insurance becomes more expensive as you get older, because with age comes an increased risk of having a medical condition that might affect your life expectancy. So the policy you already have may be priced at a better rate than a new policy might be
- If you've had any health problems since taking out your policy, this may also increase your premiums, and you may even be declined for a new policy. You'll need to answer health questions when you apply, even if the new policy is with the same insurer, because it will need to be underwritten
How do you cancel your existing life insurance policy?
You might not want to stay with your current insurer, perhaps because your premiums will be too high with an increased amount of cover, or they can't offer you an additional policy.
If you want to cancel your existing policy with your current insurer and get a new one elsewhere, you'll need tell your policy provider. They'll explain what happens next, and cancelling should be straightforward.
If you want to get life insurance with us, you can choose when you want the policy to start, so it begins exactly when you need it to. Just make sure you don't cancel your policy with your existing provider until the new policy starts, so there are no gaps in your cover.
It's important to do your research and review your options before changing your cover. You might want to take a look at our video, understanding life insurance, to refresh your memory on the key things to think about.