Life insurance is one of those things many people set up once and then forget about. It’s often arranged during a major life moment—buying a home, starting a family, or changing jobs—and then quietly left in the background. But life doesn’t stand still, and neither should your insurance.
Regularly reviewing your life insurance ensures it continues to do what it’s meant to do: protect the people and lifestyle that matter most to you. An outdated policy can leave you underinsured, overpaying, or holding cover that no longer fits your circumstances.
Why life insurance reviews are so important
Your life insurance should reflect your current life, not the one you had five, ten, or twenty years ago. Changes in income, family structure, debt levels, and health all affect whether your cover is still appropriate.
Without regular reviews:
- Your cover may fall short of replacing income or clearing debts
- Your premiums may be higher than necessary
- Your policy may not align with your long-term financial goals
A review helps ensure your protection keeps pace with your life.
Top 7 Tips When Reviewing Your Life Insurance
1. Reassess your income and expenses
If your income has increased, or your household relies more heavily on it, your cover may need to increase. Likewise, changes to expenses—such as school fees or caring responsibilities—should be factored in.
2. Review your debts
Mortgages, personal loans, and business debts change over time. Your life insurance should be sufficient to reduce or eliminate financial pressure on loved ones if you’re no longer around.
3. Consider changes to your family situation
Marriage, divorce, children, blended families, or dependants moving out all impact who needs protection and how much support they may require.
4. Check how your policy is structured
Insurance inside superannuation, outside super, or a combination of both can have different tax outcomes, ownership rules, and flexibility. What worked years ago may not be optimal now.
5. Don’t forget trauma and income protection
Life insurance is only one piece of the puzzle. Trauma (critical illness) cover and income protection are just as important, especially as health risks and work arrangements evolve.
6. Review premiums and policy features
Insurance products change over time. You may be paying for outdated features or missing newer benefits that better suit your needs. A review can uncover better value without sacrificing protection.
7. Align insurance with your broader financial plan
Your insurance should support your long-term goals—whether that’s protecting your family’s lifestyle, your retirement plans, or a business succession strategy.
Why Seeking Advice From Your Financial Adviser Matters
Insurance is not just about choosing a policy—it’s about strategy, structure, and sustainability.
A qualified financial adviser looks at your full financial picture, not just your insurance in isolation. They help you balance affordability with adequate cover, structure policies tax-effectively, and ensure your insurance integrates with your broader financial plan.
Importantly, advisers also help you avoid common pitfalls:
- Being underinsured because premiums were kept artificially low
- Cancelling cover without understanding future consequences
- Holding multiple overlapping policies that add cost without benefit
In the event of a claim, having an adviser can make a significant difference. They can guide you through the claims process, advocate on your behalf, and reduce stress during what is often a very difficult time.
Top 3 Questions to Ask Your Financial Adviser
- “If something happened to me tomorrow, would my current cover truly protect my family’s lifestyle?”
This question cuts straight to the heart of whether your insurance is adequate, not just affordable. - “Is my insurance structured in the most effective way for tax, flexibility, and long-term planning?”
The right structure can make a meaningful difference over time, particularly as your circumstances change. - “What changes should I consider over the next few years as my life and finances evolve?”
A good adviser doesn’t just look at today—they help you plan ahead.
The Bottom Line
Life insurance is not a “set and forget” decision. Regular reviews ensure your cover stays relevant, cost-effective, and aligned with your life and goals. While online calculators and quick comparisons can be tempting, they can’t replace personalised advice.
Working with a trusted financial adviser helps ensure that when life takes an unexpected turn, you and the people you care about are genuinely protected—not just on paper, but in reality.
If it’s been a while since your last review, now is the right time to revisit your cover and make sure it still works for you.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.