"I already have life insurance" – that's a phrase we hear often, and it's good news. The only question is: does it still do what your family needs today? Policies typically don't go bad – but life moves on without them. A review isn't the first step toward replacing it: in most cases, updating the existing policy is the right answer.
- The four questions of a review: how much are you paying, for how much cover, for whom, and with which riders?
- The most common finding isn't a bad policy, but an outdated amount and designation.
- Replacing a policy is only worth it when there's good reason – a new policy comes with fresh underwriting and a higher premium for your current age.
The four basic questions
- How much is the cover amount – and is it enough today? Compare it against a fresh calculation using the method: mortgage, expenses, plans. An amount that hasn't been indexed for years has typically fallen behind what's actually needed.
- Who is the beneficiary? Does the designation reflect your family situation today? A five-minute checklist.
- Which riders are active? Do they fit your life situation – do you need income protection cover or critical illness cover, or is there something you could actually drop?
- What are you paying for it? Is the premium competitive in today's market – the only way to know is to compare it against fresh offers.
What type of policy do you have? That decides the strategy
With a pure term policy, updating it is simple: amount, designation, riders – typically within the existing framework. With a policy that includes a savings element (endowment, unit-linked), the picture is more complex: cancelling it can come with surrender consequences, so there the question of "keep it, adjust it, or add to it" is decided through calculation, never on impulse.
When is replacing it justified – and when isn't it?
Arguing against a replacement: a new policy starts with today's age and today's underwriting – the terms your old policy was taken out under can be worth holding on to. Arguing for a replacement: if the old arrangement offers narrow cover, is expensive, or the insurer's service has been persistently poor. The most common good solution sits in between: the existing policy stays as the base, and an extra layer brings the protection up to standard: layering.
How does a review work with me?
Bring the policy document and the last annual statement – I'll work out the rest. At the end, you'll see it all on a single page: what you have now, what's missing, and what I suggest – whether that's keeping it, changing it, or adding to it. I assess, I inform – the decision is yours: a free 20-minute review.
A question about your family's situation? Book a free 20-minute consultation →
