May 2014 marked the 253rd anniversary of the first life insurance policy being issued in the USA.  Life insurance protects your family and anyone else who may depend on you for financial support. If you die prematurely, the people who are dependent upon your income could lose that financial support, which may leave them having to fend for themselves.

Having sufficient life insurance in place will help cover some or all of that loss, depending on the amount of coverage you choose. Of course, there are instances where life insurance can be beneficial even if you don’t have any dependents.

So here’s a timely reminder why reviewing your level of life insurance is time well spent looking after your family’s future.

Five reasons why you might need to review your life cover

Childcare costs
If one person is taking a career break to raise a family, have you considered the impact their death would have on childcare? It may mean the other parent has to cut down to part-time hours at work or take on full-time childcare. With part-time childcare now costing on average more than a mortgage, it might be the right time to ensure that both parents are covered with
life insurance.

Moving jobs
Changing employer could mean you lose any life cover that comes with your job or you receive a different level of cover. This is a valuable work benefit that is often overlooked when switching jobs. Any pay increase could also mean a greater loss of income should you die. Your level of income should always be a factor taken into account when reviewing your life cover.

Mortgage
Life insurance policies are often bought when we finalise our mortgage. But with house prices changing frequently, and more families repaying mortgages or switching providers, it’s easy to forget about the life cover – check that you have enough.

Hopes for your family
Having children makes you more aware of the everyday costs but what about your hopes for your children? If you’re saving regularly for their future, you may have a specific goal in mind. Have you considered what happens if you were to die without meeting that saving goal? A policy where the level of cover decreases over time (as you simultaneously increase your savings) could also help protect any shortfall you might have.

Inflation
Some life insurance policies do not keep up with inflationary cost of living increases. Would you be happy leaving your family to meet these extra costs if you have a protection shortfall?