Adult life is - of course - fast-moving anyway, but this observation applies especially strongly at the moment, when great numbers of us are seeing rapid changes in our financial situations amid the cost-of-living crisis. And that, in turn, could have a great effect on what protection insurance products you might require at any given time.
So, what are some of the events in your own life that might most prompt you to urgently consider whether you have suitable protection cover in place? Let’s look at a few of them.
A change in employment
If you’ve recently moved from one employer to another, we would certainly urge you to make yourself aware of the benefits your new employer provides, and how the situation might differ from your last employer.
A good principle here is to look at the very maximum protection you can get from your new employer, before considering ‘topping up’ any shortfalls with personal protection cover.
Receiving an increase to your salary
With inflation being so terrifyingly high right now, you might not think that even a heightened salary would necessarily make a great difference to your requirements from protection cover, given how quickly any raise will be eaten up by spiralling costs.
However, it’s worth bearing in mind that with income protection insurance typically paying out up to 65% of your normal monthly salary or income, a bigger pay packet could enable you to also heighten the payout you would stand to enjoy from such a policy.
Entering into a marriage or civil partnership should be one of the happiest moments of your life - the very last thing you will want to think about at such a time, is what would happen if either of you were to pass away.
But of course, these things do have to be considered, so that appropriate preparations can be made. Life insurance, for instance, suddenly heightens greatly in relevance for a lot of people who tie the knot. If this is the case for you, it will be necessary to carefully consider what level of protection your surviving partner would need in the event of your death, such as for the payment of a mortgage or other outstanding debts or living costs.
Buying a home
Given all the years for which you worked so hard in order to afford a home, once you actually have bought a property, you will naturally want to protect that investment as well as you can.
Indeed, you might have taken an interest in life insurance specifically because of a perception that you will need it if you are to secure a mortgage. Strictly speaking, there’s no legal requirement to take out a life insurance policy in order to get approved for a mortgage; however, some lenders may make you having such a policy a precondition of them lending to you, and it can provide a crucial layer of protection regardless. After all, a mortgage might well be the biggest debt you ever have.
If you’re about to retire, you will hopefully get to enjoy your twilight years in pleasure and comfort. However, there’s also no getting away from the fact that retirement is a major event from a life-planning perspective, and you won’t want to find yourself short of the protection and support you will require for years to come.
One of the most important things for you to do as your retirement looms, will be to pore over the protections and benefits you currently enjoy with your employer, while considering what you will and won’t likely need during your retirement years. Would you still be able to pay your way in life in the event of future disability or disease? If this is a concern for you, a product like critical illness cover might be of particular relevance to your long-term needs.
As you can see from the above, there are a lot of things that can happen in life that can also impact on the nature and extent of the protection cover you will need.
Nor is the above an exhaustive rundown of everything you might need to know about this subject. So, if you would like to discuss your situation in greater detail with us, please don’t hesitate to call our free no-obligation advice and quotation line here at QuoteLifeCover.com, on 01604 436919.