Is Now The Right Time To Review Your Life Cover?

20 January 2021

Do you fully understand your Life Cover policy and the benefits it provides? There are numerous protection products available to Irish residents, designed to provide financial compensation to individuals and their families should a loved one suffer an untimely death.

It can be uncomfortable to consider the impact of a death in the family, however, we are currently in the middle of a major health crisis, therefore it could be even more important to make time to sit down and seriously consider your potential future needs.

Insurance, in general, is usually put on the long finger until the renewal is due. You may shop around when you get your annual renewal notification for your car insurance, home insurance or health insurance. Life Cover is a bit different in that it is taken out for a specified term, for example 20 years, and there is no requirement to review it or renew it until that stage. However just because you don’t have to doesn’t mean you shouldn’t!

The cost of the insurance can change over time and the insurance companies sometimes run discount offers so you may be able to better the cost of your insurance. On the other hand your circumstances may have changed and the cover you originally took out may no longer be appropriate to meet your needs.

If you have married or had children you may require more cover or for it to be structured differently. If you have secured new employment and they offer life cover as part of their benefits package you might not need the same level of personal cover as you did previously.

There are multiple reasons to reassess your cover, the hard part is trying to find the time to do it! This is where it can be extremely beneficial to have a conversation with a Qualified Financial Advisor to discuss your overall financial situation. They can help you decide on a level of cover and benefits appropriate for you, taking the following factors into consideration: What level of income will be missing? What outgoings will cease? What outgoings will continue? What income you might qualify for on the death of a spouse; such as Widow’s Pension? Are there any life events or ad hoc payments needed; e.g. a wedding or child’s education?

Regardless of how much cover you may require, a key factor is how much you can afford. It is important not to take out a level of protection that you will struggle to pay each month. If it is working out too expensive to maintain your ideal level of cover it is still better to have some cover rather than no cover, so you can start out with a level of cover that is affordable and this can perhaps be increased in future. If you are struggling with repayments it would be important to consider the option of decreasing your cover rather than letting the policy lapse due to non-payment of premiums. Life Cover should give you peace of mind, not be a source of worry.

The good news is that you are not tied into the term of a life insurance policy so it can be reviewed at any time. Should you acquire new replacement cover you can simply cancel your existing policy as soon as the new policy is in place. To get further details on the most affordable and efficient cover for you, you should contact a Qualified Financial Advisor.

Robert Downes, QFA RPA is a Qualified Financial Advisor and Retirement Planning Advisor. You can contact him through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on

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