Remortgaging? Why Wouldn’t You Have a Protection Review?
Written on 4 March 2024 by
Remortgaging instead of moving home? You hopefully underwent a protection review when you took out the original mortgage, and likely secured life insurance to safeguard it in the process. But don't dismiss the need for another conversation. Many overlook the importance of regularly reassessing their circumstances and existing protection policies.
Here are the top 5 reasons to review your protection needs when you remortgage:
- Your mortgage has changed - you might be raising funds for renovations or increasing the term to bring down costs. Changes to your term, amount or even your rate can all impact your needs. Your existing policy may now have a shortfall. If your mortgage payment has increased, then so have your monthly expenses and therefore income stability may now be more important to you in the event of illness or injury
- Your job or income has changed - you may be earning more, are now more reliant on one person's income or had changes made to your workplace benefits. You may have even gone self-employed which, whilst providing the joys of greater autonomy, leaves you without valuable sick pay. Would you be able to cover your bills without your salary or sick pay?
- You’ve had children - according to the Child Poverty Action Group, the average cost of raising a child until the age of 18 is estimated as being up to £220,000 in the UK. This can become a worrying amount when a parent is lost. Could you continue to work full time and raise children alone? Policies like family income benefit are designed to help you pay your bills if the unforeseen were to happen and can be a very cost-effective option
- Your health and lifestyle may have changed - it could be that these are positive changes. Some previous medical conditions could now be past the time when insurers will take them in to account. You may now be a non-smoker which can make a big difference to your premiums. On the other hand, if you have any new medical disclosures, you may want to get valuable protection in place before they could have a greater impact on your life or be restrictive to the cover available later down the line
- Lastly, another good reason to review your cover is that besides your personal changes, the market makes steps forward itself - insurers are always trying to innovate and improve their proposition and pricing. One big change over recent years is that insurers are now offering more benefits than ever. For example, there’s more comprehensive children’s critical illness cover as well as free health apps that allow access to GPs for your family, allow you to self-refer for mental health support or physiotherapy, and provide second medical opinions from experts in their field. Some of these can make a world of difference in current times and may be a big improvement on what you have for a small change in cost
The reality is that your protection policies are absolutely priceless if they’re ever claimed on. Why wouldn’t you make sure they’re doing what you want them to and in the most efficient way possible? Or if you don’t have cover, make sure you’re aware of your options. At John Charcol our specialist protection advisers are there to tell you exactly that. If your policies are sufficient then you have the peace of mind that you’re still adequately protected and if they’re not, we can guide you through all the options available to best protect you and your family. Get in touch on 0330 433 2927.
Category: Mark Francis
