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Velmah Nzembela | Time for an insurance policy review in the new year

Velmah Nzembela | Time for an insurance policy review in the new year
17-01-24 / Velmah Nzembela

Velmah Nzembela | Time for an insurance policy review in the new year

As we usher in a new year, it's not only a time for resolutions but also a critical time to assess and fortify our financial foundations. Long-term insurance, designed to safeguard against life's unpredictable twists and turns, demands our attention. A thorough examination of these policies ensures that they evolve in correlation with the changes in our lives, from the addition of new family members to shifts in income and the inevitable passage of time.

Long-term insurance, encompassing life, disability, and income protection policies, forms the backbone of financial security. Regularly reviewing these policies is paramount, given life's dynamic nature. Events such as marriage, the birth of children, the loss of a loved one, or fluctuations in income necessitate adjustments to ensure comprehensive coverage.

Life changes, policy adjustments

  • Marriage and family expansion: As families grow, so do responsibilities. Evaluate your life insurance to account for new dependents and ensure that the coverage aligns with your family's current and future needs.
  • Loss of a loved one: In the unfortunate event of the death of a family member, reassess life insurance coverage to determine if adjustments are needed to provide adequate financial support for the remaining members.
  • Changes in income: Whether it's a promotion, career change, or a period of reduced income, your long-term insurance should reflect your financial status. Adjust coverage to safeguard your loved ones against unexpected financial challenges.
  • Disability and income protection: A disability can have long-term financial implications. Review disability and income protection policies to ensure they offer sufficient coverage, considering potential changes in your ability to generate income.

Tips for an effective long-term insurance review

  • Regular updates: Periodically update personal information, including beneficiaries, to ensure accuracy and alignment with your current circumstances.
  • Assess coverage adequacy: Evaluate the adequacy of your coverage based on changes in your life. Consider whether your current policies sufficiently protect your family's financial future.
  • Explore policy riders: Some policies offer riders (commonly known as additional benefits) that can be added to enhance coverage. Explore options like accelerated death benefits or additional income protection riders to customize your policy according to your needs.
  • Understand policy terms: Familiarise yourself with the terms and conditions of your policies. Understand any exclusions, waiting periods, or limitations to avoid surprises during critical moments.
  • Seek professional advice: For complex life changes or intricate policies, seek the guidance of a financial advisor. Their expertise can help you navigate the intricacies of long-term insurance and make informed decisions.

Reviewing your long-term insurance policies is not just a prudent financial practice but a commitment to securing your family's future. By staying proactive in your approach, you can rest assured that your long-term insurance will stand as a steadfast guardian, providing peace of mind for the years to come.

*Velmah Nzembela is Chief Marketing Officer, at Assupol Life.

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