Review Your Insurance and Protection Plans

Review Protection Plan

Your protection plans will require regular reviews, like any other aspect of financial planning.

Even if you have built in some allowance for inflation, you cannot assume that future changes will be unnecessary. For example:

- Inflation may not match the original assumptions. A promotion might give you a sudden jump in salary.

- Social security legislation may change, altering your entitlement to benefits, as happened with the introduction of the Employment and Support Allowance (ESA) in October 2008.

- Your personal circumstances may alter – an addition to the family, an inheritance or a new job could all mean a revision is needed.

- Your borrowing may increase, adding to your protection requirements.

- A change of job could mean different employment benefits to integrate into your protection arrangements.

- At times it may be possible to replace your cover at lower cost. Parts of the protection market are fiercely competitive and in the past it has been possible to cut premiums and/or increase cover simply by starting a replacement policy.

It usually makes sense to review protection on an annual basis, with ad hoc reviews when major events, e.g. moving home, occur. Even if the review produces a ‘do nothing’ result, this still provides a valuable confirmation that the existing arrangements are in working order. What you do not want to happen is to discover your protection is inadequate when you or your family have to call upon it.

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