Your Personal Insurance Review – now is the right time
Insurance is one of those things many of us arrange and then rarely think about again. But as your life changes, the insurance cover you put in place several years ago may no longer provide the protection you need today.
A new home, a growing family, a change in income, paying down debt or approaching retirement can all change how much insurance you need. In addition, these events can change which types of cover remain appropriate.
Regularly reviewing your personal insurance can help ensure your cover continues to protect you, your family and your financial position if the unexpected happens.
What does personal insurance protect?
Personal insurance is designed to reduce the financial impact that death, serious illness, injury or disability could have on you and your family.
There are four main types of personal insurance, and each serves a different purpose.
Life insurance
Life insurance generally pays a lump sum if you die.
The proceeds can provide financial security for your family and may be used to repay a mortgage or other debts. They may also replace lost income, provide for children’s education and help meet your family’s ongoing living expenses.
The appropriate amount of life insurance will depend on your individual circumstances. These include your debts, assets, income and the financial needs of those who depend on you.
Total and Permanent Disability (TPD) insurance
TPD insurance generally pays a lump sum if you meet the policy’s definition of being totally and permanently disabled.
The benefit can help meet the significant financial consequences of a permanent disability, such as repaying debt, funding medical or rehabilitation costs, making modifications to your home or providing for future living expenses.
TPD definitions and policy terms can vary considerably, so understanding exactly what your policy covers is important. Furthermore, what it doesn’t cover shouldn’t come as a surprise under distressing circumstances.
Trauma insurance
Trauma insurance, sometimes referred to as critical illness or recovery insurance, generally provides a lump sum if you are diagnosed with, or suffer from, one of the serious medical conditions specified in your policy.
Depending on the policy specifications, these may include conditions such as cancer, heart attack or stroke.
Unlike income protection, you don’t necessarily need to be permanently disabled or unable to work for an extended period to receive a trauma benefit. The payment can provide additional financial flexibility while you focus on treatment and recovery – that could be lengthy, and expensive.
Income protection insurance
For most working Australians, their ability to earn an income is one of their most valuable financial assets.
Income protection insurance is designed to replace part of your income if illness or injury prevents you from working.
Policies generally include a waiting period, which determines how long you must be unable to work before benefits commence. There is also a benefit period, which determines how long payments may continue if you remain eligible.
The amount payable and the terms and conditions applying to income protection insurance vary between policies.
How much insurance do you need?
There is no single level of insurance that’s appropriate for everyone.
For life and TPD insurance, a useful starting point is to consider how much money would be required to repay debts and provide for your family’s current and future financial needs, then take into account your existing assets and financial resources. Some may also want to include cover for long-term financial goals that may be at risk as a consequence of the event.
Your insurance needs may be influenced by:
- your mortgage and other debts;
- your income and ongoing living expenses;
- your spouse or partner’s income;
- children and other financial dependants;
- existing savings and investments;
- superannuation;
- your stage of life; and
- your longer-term financial objectives.
The objective isn’t necessarily to have as much insurance as possible. It’s to have an appropriate level and type of cover for your circumstances.
When should you review your insurance?
Your insurance shouldn’t be a “set and forget” part of your financial plan.
Just as your investment, superannuation and retirement strategies should be reviewed periodically, your wealth protection strategy should also be revisited as your circumstances change.
An insurance review can be particularly important when you:
- buy a home or take out a new mortgage;
- get married or enter a long-term relationship;
- have children or your family circumstances change;
- change jobs or experience a significant change in income;
- receive an inheritance (or other windfall gain);
- substantially increase your savings or investments;
- pay down or repay significant debts;
- experience a significant increase in insurance premiums; or
- approach or enter retirement.
Even without a major life event, periodically reviewing your cover can help identify whether your existing arrangements remain appropriate.
As you accumulate assets and reduce debt, for example, you may find that you don’t require the same amount of cover you needed earlier in life.
It’s not just the amount of insurance that matters
An insurance review shouldn’t simply ask, “How much cover do I have?”
It should also consider whether you have the right type of cover, whether the policy remains suitable and how the insurance fits within your broader financial strategy.
Policy definitions, exclusions, waiting periods, benefit periods and other terms can differ between insurers and policies. Some insurance may also be held through superannuation, while other cover may be held personally.
Importantly, cancelling or replacing an existing policy should be carefully considered. A newer policy isn’t automatically a better policy. This is particularly true if your health, occupation or circumstances have changed since your existing cover was established.
Is it time to review your insurance?
Your insurance strategy should evolve as your life and financial position change.
If it has been some time since you reviewed your personal insurance – or you’ve experienced a significant change in your family, employment, income, debt or financial circumstances – now may be a good time to take another look.
At Continuum Financial Planners, we can review your existing life, TPD, trauma and income protection insurance. We can also help you understand what you currently have, what it covers and whether it continues to meet your needs.
Our review considers not only the amount of insurance you hold, but how your cover fits within your broader financial plan and wealth protection strategy.
If you’re unsure whether your current insurance still provides the protection you and your family need, contact Continuum Financial Planners. You can arrange an insurance review meeting with one of our experienced advisers:
- phone our office on 07-34213456, or
- at your convenience, use the linked Book A Meeting
A conversation today can help ensure your financial protection remains aligned with the life you’re living now – and the future you’re planning for.
(This article was first posted by us in August 2026.)