An insurance review is a check of your existing insurance to make sure your cover still suits your current circumstances, needs and financial position.
Your insurance is designed around your life at the time it is arranged. As your income, family, mortgage, health, business or financial commitments change, your insurance needs can change too.
A good insurance review isn't necessarily about buying more cover — it's about making sure the cover you have still makes sense.
Life rarely stays the same. You might buy a home, have children, change jobs, start a business, increase your income or pay down your mortgage. Each of these changes can affect the amount and type of insurance you need.
An insurance review gives you an opportunity to look at your existing policies and consider whether they still provide the protection you intended.
A review may look at things such as:
Life Cover - would the amount still provide enough support for your family or help repay your debts?
Income Protection - has your income changed, and is the benefit still appropriate?
Trauma or TPD Cover - would the level of cover still provide meaningful financial support?
Medical Cover - has your health insurance changed, or are there benefits you may now need?
Mortgage Protection - has your mortgage balance changed?
Premiums - are you comfortable with the way your premiums are structured?
Policy ownership and beneficiaries - are these still appropriate?
Business insurance - have your responsibilities, debts, shareholders or key people changed?
A review can also be useful when your circumstances haven't changed. Insurance policies can contain different features, definitions, exclusions and options, and it can be helpful to understand what you actually have.
A review does not automatically mean changing your policies. Sometimes the best outcome is to leave things exactly as they are.
Why It Matters
One of the biggest risks with insurance is having cover that was appropriate five or ten years ago but no longer reflects your life today.
For example, imagine you arranged Life Cover when you had a $400,000 mortgage and no children. Several years later, you have children, a larger mortgage and a significantly higher income.
Your original policy may still be in place, but the amount of protection you need may have changed.
Regular reviews can help identify these gaps before you need to make a claim.
The goal isn't to have the most insurance possible. It's to have the right protection for your circumstances.
Common Misunderstandings
“A review means I'll be told I need more insurance.”
Not necessarily. A review should look at your overall circumstances and whether your existing cover remains appropriate. Sometimes this means increasing cover, sometimes reducing it, and sometimes making no changes.
“Once I have insurance, I don't need to think about it again.”
Insurance should generally be revisited when your circumstances change. Major life or financial changes can affect your needs.
“I should review my insurance every year no matter what.”
There isn't a single timeframe that is right for everyone. A review can be particularly valuable following a significant change in your circumstances.
“Changing my policy is always better than keeping my existing one.”
Not necessarily. Replacing an existing policy can have implications, including new underwriting, exclusions, loadings, waiting periods or changes to policy terms. Any replacement should be considered carefully.
FAQs about Reviews
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A review can be useful after major life or financial changes, such as buying a home, having a child, changing jobs, starting a business, increasing your income or taking on significant new debt.
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There is no universal timeframe. Your circumstances and the type of insurance you have will influence how often a review is appropriate.
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Your adviser can look at your existing policies, current circumstances, financial commitments and objectives, and compare these with the protection you currently have.
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The right amount depends on your financial commitments, lifestyle and the level of support you'd want if you were diagnosed with a serious illness.
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It can, depending on whether you make changes to your cover. Simply reviewing your policies does not automatically mean your premiums will change.
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Generally, you should not cancel existing cover until any replacement cover has been formally accepted and you understand the new terms. Replacing insurance can involve new underwriting, exclusions, loadings or other changes.
Your insurance should reflect the life you're living now — not just the circumstances you had when you first arranged it.
At New Vision Financial Services, we can help you review your existing insurance, identify any potential gaps or overlaps, and make sure you understand what your policies are designed to do.
Sometimes a review confirms that you're already well protected. And sometimes it highlights something that needs attention. Either way, knowing where you stand is valuable.