The simple answer to the question is, yes, in most cases you can make changes to your life insurance policy. Simple changes to your address and contact details should be easy enough to make. If you change your name however, be sure to contact your life insurance provider to update them and provide any documentation they may need.
Life insurance, if you have it, is put in place to protect your family or financial dependants. It’s based on your circumstances, such as the number of children you have and your mortgage balance etc., at the time when you set it up.
However, in life, things are never the same for long. And whenever something new happens in your life, you might need to think about changing your life insurance policy and make sure it reflects your family’s circumstances.
Here are some of the main reasons for changing life insurance:
You move or remortgage
If you move into a bigger home or remortgage, your debt is likely to go up. By increasing the amount you’re covered for, you can make sure that your family won’t be left with extra financial difficulties if the worst happens.
You’ve paid off your mortgage
If you pay off your mortgage faster than expected, you no longer need life insurance to cover the loan. You could either end the policy completely, or if you still need it to cover other costs like childcare or education, you could keep it in place but lower the amount paid out and cut down your premiums.
It’s always worth comparing life insurance to see if there’s a cheaper or more suitable policy available. Similarly, you might be able to reduce your monthly payments if you lower the overall amount of cover.
Moving to a joint policy
If you have single life insurance but are now a couple, it might be cheaper to open a joint policy. Joint life insurance is similar to single life insurance, except it is taken out by two people, such as a married couple or civil partners. It pays out a lump sum upon the death of either party, providing a financial cushion for the surviving partner or other dependants. You can choose to have a policy that pays out on the first death (useful to support the surviving partner) or second death (useful for supporting other dependants such as children).
Separation or divorce
If you become separated or divorced from your partner and you share a joint policy, you may want to amend your policy. Most insurers will offer a separation option that allows you to split your joint life policy into two single policies.
Your family grows
It doesn’t matter if you have one child or more, it is important to provide financial security to your family. Changing your life insurance in line with your dependants keeps your whole family protected.
Most insurance providers will allow you to make changes to your policy. However, terms and conditions will apply. Make sure to read your policy thoroughly. And keep in mind that any change could affect the premiums you pay.