Is Your Insurance Still Right for Your Life Today?
When Did You Last Review Your Insurance?
We’re pretty good at reviewing the things we see regularly. You review your mortgage. You compare interest rates. You check your KiwiSaver balance. But when did you last review your insurance? For many people, the answer is: a long time ago. And that’s understandable. Insurance is often something we put in place when we buy a home, start a family or take on a mortgage, then leave in the background while life moves on.
The problem is, your circumstances can change a lot while your insurance stays exactly the same. Your Life Has Changed. Has Your Insurance? Think about what’s changed for you over the past few years.
You might have:
Renovated or extended your home
Bought new furniture, technology or other valuable belongings
Changed jobs or careers
Increased your income
Grown your family
Had children become financially independent
Taken on a larger mortgage
Changed how you use your home
Experienced other significant changes in your financial or family circumstances
Your insurance policy, however, may still be based on the life you had when you first took it out. That’s why an insurance review can be so valuable.
Insurance Isn't Set and Forget It’s easy to think that once you have insurance in place, the job is done. But your cover should reflect your current circumstances, not just the circumstances you had when you first arranged it. The Insurance Council of New Zealand recommends regularly reviewing your insurance cover, including your Sum Insured, policy details, excesses and any changes to how your home is being used. This doesn't necessarily mean you need more insurance. It simply means checking that what you have still makes sense.
What Should You Check During an Insurance Review? A regular review gives you an opportunity to ask some important questions.
Has your Sum Insured kept up? If you've renovated, made significant improvements or changed the contents of your home, it's worth checking whether your current Sum Insured still reflects your circumstances.
Have your policy details changed? Your needs can change over time, so it's worth making sure your existing policy details are still appropriate.
Are your excesses still right for you? Your financial situation may be different from when you first took out your policy. Reviewing your excesses can help you understand exactly what you'd be responsible for if you needed to make a claim.
Has the way you use your home changed? Perhaps you've started working from home, renovated part of the property or changed how the space is being used. These changes are worth discussing as part of your review.
An Insurance Review Doesn't Automatically Mean Buying More
This is an important one.Reviewing your insurance doesn't automatically mean you need to increase your cover or buy another policy. The purpose of a review is to ask:Does the insurance I have still make sense for my life today? Sometimes the answer will be yes. Sometimes your circumstances may have changed and your cover needs updating. Either way, understanding where you stand can give you greater confidence that your insurance is doing what you expect it to do.
When Was Your Last Insurance Review?
If you can't remember the last time you reviewed your insurance, that might be a good sign that it's time to take another look. Life doesn't stand still, and your financial protection shouldn't either. David can help you review your current cover, understand what you have in place and make sure it still fits where life is at today. Email David at David@khfinancial.co.nz to arrange a conversation.
his article is general information only and isn't a substitute for personalised financial or insurance advice.
