REVIEWING YOUR CURRENT INSURANCE COVER

BY TAKING A REGULAR STOCK TAKE OF YOUR CURRENT INSURANCE COVER, YOU CAN BE BETTER PREPARED FOR LIFE’S UNEXPECTED EVENTS

You may already have some level of protection in place. But reviewing your current arrangements and making sure you, and those you’re close to you, are properly protected financially is a smart move.

How robust are your own measures for protecting your finances and your family? Let Bespoke Money take a look at your current insurance cover situation and make sure you’re set up for the future.

WHY IT’S IMPORTANT TO HAVE LIFE COVER

It’s likely you already have a life assurance policy to cover your mortgage payments if you or the person you share your mortgage with dies.

But are you confident it’s fit for purpose? Depending on the type of policy you have, it may no longer provide you with the security it once did. This could be because you’ve progressed through life and commitments have changed and grown but you haven’t modified your insurance to match them.

If you have a whole life policy, it will pay out a fixed lump sum whenever you die. Is that enough to repay your remaining mortgage debt and provide ongoing security for your loved ones? You need to be sure the monies paid out are sufficient to meet the needs of those left behind, especially if you have a decreasing term policy.

THE NEED FOR CRITICAL ILLNESS COVER

Critical illness cover (often known as cancer cover, since, cancer, sadly, is the condition that triggers most pay outs), will pay you a lump sum on diagnosis of a terminal illness. The payment can be used for any purpose, whether it’s to pay down mortgage debt, fund your private treatment or meet ongoing living costs.

But you may now have savings and other assets that you could use in the event of an illness. Perhaps your lifestyle and age are now making cover expensive, or you now have an illness not covered by your insurance. Or maybe you’re now fortunate to be in a job that includes critical care as part of an employment benefits package. Whatever your situation, it’s worth checking if your critical illness cover is still fit for purpose.