For those who’ve followed my blog for a while now, you’ll know that the Coulters have an anniversary coming up next month. Yup, September marks eight years of wedded bliss for Rob and I! Like most couples, anniversaries are something we celebrate, usually with a glass (or two) of wine from one of our favourite vineyards.
But there’s another important anniversary that needs to be marked each year – your life insurance anniversary. If you’ve taken the incredibly important step of getting cover, it’s not enough just to ‘set and forget’. Our lives change all the time, which means our insurance needs do too. So, your insurance anniversary is the perfect time to make a date – with your financial adviser!
One of the main reasons I recommend my clients book in an annual review is that sometimes it’s easy to become complacent. Especially if you’ve been lucky and haven’t had any need to claim on your insurance. I say lucky, because not claiming means you and your loved ones have been in good health and life has continued as normal – which is ultimately something we all want.
But if you haven’t claimed on your cover, you might start to think it’s no longer worthwhile. When that life insurance anniversary comes around each year, often with an increase to your premiums, you start to wonder if you could use the money somewhere else.
You wouldn’t be alone in thinking this. Let’s look at trauma cover, for example. According to one of Australia’s major insurers*, the average age people take out trauma cover is 39 years. But just 3 years later, at 42, the majority of people are deciding they don’t need this cover any more and they’re cancelling it. In some cases, maybe these clients don’t need their cover because their circumstances have changed. But here’s the scary part… the average age that people claim on their trauma cover is 50. So, if you’ve cancelled in your early 40s, you’ve left yourself exposed at the time when you’re most likely to need to make a claim.
If your insurance anniversary is coming up, make a date with your adviser to go over your plan and make sure it’s still working for you. If it’s too expensive, there are ways you can reduce your premiums without losing your valuable cover. Because what’s the use of a back-up plan if you get rid of it before it’s really needed?