It’s usual to review your insurance from time to time. And certain life stages such as paying off the mortgage, children leaving home, approaching retirement, often prompt people to consider whether they still need the same level of cover.
But before you reduce or cancel insurance, it’s worth taking a closer look at how your needs, risks, and goals are evolving.
What risks are you still protecting against?
Insurance isn’t just about income protection during working years. Even if your income needs have reduced, personal insurance can help cover:
· Medical and treatment costs if you face a serious illness
· Additional care and lifestyle support if you lose independence
· Debt repayments or financial commitments you may have
· Legacy or estate planning goals, ensuring loved ones have options
Understanding what risks you’re still exposed to, and how insurance could help mitigate them, is an important first step.
Could health or age make future cover harder to obtain?
One mistake is cancelling cover with the thought that you can “just get new cover later if needed.” In reality, insurance may becomebecome harder and more expensive to obtain as you age, and any changes in your health can make new cover unobtainable or heavily restricted.
Keeping existing cover often preserves valuable benefits you might not be able to replicate in the future, even if you adjust the level of cover to fit your new circumstances.
How does insurance support your overall financial strategy?
In later life, insurance can shift from income replacement to providing security and flexibility. It can help fund medical treatment choices, support a surviving partner, or enable you to leave a desired inheritance, without having to rapidly draw down investments.
Your adviser can help you assess what role insurance should play in your financial strategy as your goals and priorities evolve.
Talk to your adviser
If you’re considering adjusting or cancelling your insurance, it’s worth seeking professional advice first. An adviser can help you evaluate the cover you have, what role it plays in your current and future plans, and how to tailor your protection for the life stage you’re entering, helping you avoid decisions that might not be suitable for your longer term objectives.
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.