Life insurance is not a ‘set-and-forget’ insurance product but something that requires regular review. Here we highlight some of the life events and milestones when you should consider evaluating your policy.

Life doesn’t stand still – and your insurance shouldn’t either.

As your circumstances change, it’s important to make sure your life insurance continues to reflect your needs, goals, and financial responsibilities.

To help guide you, here are some of the most common life events and milestones that may signal it’s time to review your cover.

1. Important life moments

Marriage or divorce

When you get married or divorced, your financial responsibilities and beneficiaries may change. Reviewing your life insurance in light of these events will help to ensure your cover provides adequate protection for your family and dependents.

Starting a family

Welcoming a child to your family is a special time. It’s also an ideal time to review your life insurance to ensure your policy provides sufficient funds for your child's upbringing, education, and other needs.

Change in employment or income

If you experience a significant change in your employment status, such as a new job, promotion, or career transition, it's important to assess your life insurance. An increase in income may require an adjustment to your policy to maintain an appropriate level of protection for your loved ones.

2. Changes in your financial obligations

Life insurance should be able to cover your financial obligations. Therefore, it's important to review your policy when you experience significant changes in your financial responsibilities, such as:

Home ownership

If you've recently purchased a new home or refinanced your mortgage, your life insurance should account for the outstanding balance of your mortgage. This ensures your loved ones won't face the burden of repaying the loan if something ever happens to you.

Debt accumulation

Taking on new debt, such as personal loans, credit card debt, or business loans, can impact the financial wellbeing of your dependents in your absence. Reviewing your life insurance ensures your policy will be able to cover these liabilities, if needed.

Education expenses

If you or your children are pursuing higher education, you may want to evaluate your life insurance to include funds for tuition fees and other related expenses. Likewise, if you want your kids to obtain a private school education, you should consider the impact that your death or disability would have on these aspirations.

3. Changing super fund

Starting a new job often means updating your super fund details to your new employer. If your insurance cover is connected to your super, it’s important to check that your insurance aligns with your new job and income, as these may change your risk category or income replacement needs.

If your policy was previously part of a group insurance policy, it’s also worth confirming whether your insurance cover can continue when you change jobs. Some funds may stop providing insurance cover when you leave your job, while others may have a continuation option feature you can apply for to stay covered under an individual policy.

4. Changing health conditions

Your health plays a crucial role in determining life insurance premiums and eligibility. Therefore, it’s advisable to review your policy in the following situations:

Declining health

If your health has worsened since you obtained your life insurance policy, it's important to assess whether your cover is still sufficient for your circumstances.

Positive lifestyle changes

On the other hand, if you’ve made significant positive lifestyle changes – such as quitting smoking, losing weight, or improving your overall health – you may be eligible for lower premiums. Reviewing your policy can help you take advantage of potential savings.

If you're an Acenda policy holder, you have access to Vivo at no additional cost. Vivo is our holistic health, wellness, and recovery program that can provide you with tools and support to help you improve your health and wellbeing today. To find out more, head to vivowellbeing.com.au

5. Policy performance and market conditions

Periodically reviewing your life insurance policy allows you to evaluate its performance and consider any necessary adjustments based on market conditions, such as:

Policy maturity

If you have a policy with an investment component, such as whole life or universal life insurance, it's important to assess its performance. Reviewing the policy can help determine whether it's meeting your financial goals or if you need to modify it.

Inflation

Market inflation and cost of living increases are good indicators to check whether your cover is adequate to keep in step with the cost of living. You can read more about indexation (also known as inflation proofing) here.

Even if your life feels stable, it’s still worth checking in every few years. Whether it’s adjusting your cover for inflation, updating your beneficiaries, or accounting for new financial responsibilities, the goal is simple: keep your insurance in step with your life.

To review your life insurance policy, speak with your financial adviser. Together, you can review your policies in line with your current circumstances and implement changes as needed.

When things take a turn, we help you stay on track

At Acenda, we’ve been helping Australians take life on with market-leading life insurance solutions for over 135 years. In 2024, we approved over 94% of individual claims, paying $802 million in benefits to over 5,400 customers when they needed it most.

Learn more about our claims philosophy and claim process.