How often should you review a life insurance policy?


Even if you haven’t given up smoking it is always worth reviewing your policy on a regular basis. Moving to a new home, having children, or gaining a promotion at work are just some of the other lifestyle changes that could affect the amount of cover you need and/or the premiums that you pay.


Like any insurance cover, new policies come onto the market all the time so you may be able to achieve more cover for the same cost. An Old Mill financial planner can help determine the most suitable policy for you.


What other elements need to be considered when taking out life insurance? The following decisions all need to be carefully considered:


Should the policy be written on a single or joint life basis?


A joint life policy usually pays out on the first to die of the policyholders and subsequently leaves the remaining policyholder to seek cover for the future. The medical circumstances of the surviving policyholder may have changed, so obtaining new cover


may be costly. Having two separate policies could be a more sensible decision as the costs are likely to be only marginally higher.


Should the policy be ‘Written in Trust’? This ensures that the money is paid directly to the person you nominate and also avoids your estate paying Inheritance Tax.


Should the policy include critical illness cover?


As already mentioned it may work out cheaper than taking out a separate policy.


An Old Mill financial planner can help you to make all these decisions.


Key points 1. Ensure you have adequate life cover 2. Don’t underestimate your worth 3. Review your policy regularly 4. Consider the elements your policy needs (e.g. the benefit of using Trusts)


5. Think carefully about critical illness and income protection


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