Advice matters
How life changes affect insurance needs

Many things prompt people to first take out personal insurance.

For some people, it’s a new mortgage. For others, it’s concerns about their families’ financial futures.

But whatever your reason for taking out cover in the first place, your needs are likely to change over the course of your life. At SHARE, we can help you make sure that your protection moves with you.

Here are five ways that changes in your life can alter your insurance needs.

Purchasing a home

For lots of people, the purchase of their first home is the biggest financial transaction they have been involved in up to that point.

Taking on a large amount of debt usually means coming up with a strategy to pay it off over time. But it also often requires people to think about what would happen if their circumstances changed.

Would they be able to service the home loan, even if they were not able to work in their normal occupation?

This is where insurance steps in. Whether you are contemplating a first-home purchase, thinking about extending your borrowing to step up to a new property, or adding an investment property to your portfolio, it’s a good time to assess whether you have sufficient protection in place.

This could be income protection cover to help you if your income was disrupted due to illness, or things such as life cover to assist your family with the mortgage debt if the worst were to happen to you. Your SHARE adviser can help you work out what’s appropriate.

Having children

Children change lots of things in a person’s life – not least their financial commitments! If you’ve recently had children, it may be time to reassess your insurance cover.

You may find you need more protection, particularly if there are now more people relying on your income. You may also have less leeway to cut your expenses if your income changes than you did as a single person or a couple with no dependents.

This can also be a good time to assess your health cover and work out whether you have what you need as a family unit.

A new relationship

When you marry or enter a serious relationship, it can raise financial questions.

If you’ve recently taken the next step with a serious other, it could be a great time to do a stocktake of your financial life – including your personal cover. This can be a good chance to talk about things like who owns whose life policy and how your household can be kept on track financially, whatever happens.

Changes in your employment

When your income has changed significantly, or you’ve shifted into or out of self-employment, it might be worth checking whether your cover is still appropriate.  Your SHARE adviser can help you work through whether you are adequately protected. 

Children leaving home

When you get towards the empty-nester stage of life, your needs can change again. If your kids are leaving home, or you’re becoming mortgage-free, it might be time to think about reprioritising some of your cover based on your current needs and situation. We can help you weigh this up to ensure that you retain all the protection you need.

Like to talk?

We want to help you make sure your insurance cover fits you, no matter how your life changes. It should adapt and grow with you as you hit personal, career and financial goals. As your insurance advisers, at SHARE we’re here to make sure you get the most out of the cover options available to you. If it’s time for a check-up, or just a check-in, give us a call or email.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.