11 Sep Does Your Life Insurance Still Fit Your Life? How One Couple Found Out
"When did you last review your life insurance?"
“When did you last review your life insurance?” is a question we often ask clients when we’re arranging a mortgage.
It’s also a question that can catch people off guard.
One couple came to us to arrange the mortgage on their new home. Their circumstances had changed considerably since they’d bought their first property together: a bigger house, a larger mortgage and two children instead of one.
Life insurance wasn’t particularly high on their list of things to think about.
They’d arranged cover years earlier when they first bought together and, quite reasonably, had assumed it was still doing the job they’d originally intended it to do.
When we asked when they’d last reviewed it, the answer was simple.
They hadn’t.
What did their existing life insurance actually cover?
Before considering anything new, we suggested taking a look at what they already had.
Two things stood out.
The first was the amount of cover.
Their existing policy had been arranged around their previous, smaller mortgage. They were now borrowing considerably more to buy their new home, which meant there was a difference between the amount they owed and the amount their existing policy was designed to pay out.
The second was the cost.
Their existing policy included a structure where the premium could be influenced by meeting certain health and lifestyle-related criteria. Over the years, their premiums had increased and were now approaching twice what they’d originally paid, without a corresponding increase in the amount of cover.
Their lives had moved on.
Their protection hadn’t moved with them.
Why didn't we simply increase their existing cover?
There are often several ways of approaching protection planning.
Rather than assuming that adding more cover to their existing policy was the right answer, we went back to the beginning.
What did they actually want their protection to achieve?
Paying off the mortgage was important, but that wasn’t the only financial consequence the family could face if either parent died.
There were two children to think about too.
So we explored the different ways their protection needs could potentially be met and compared appropriate options available to them.
The solution they ultimately chose included:
- Decreasing term life insurance designed to provide cover alongside their repayment mortgage, with the level of cover reducing over time.
- Family income benefit designed to provide a regular income if either parent died during the policy term, helping the surviving family with their ongoing expenditure until their youngest child reached 21.
Rather than simply asking “How much life insurance do we need?”, we were able to have a broader conversation about what the family might actually need financially if one of them was no longer there.
What did the review mean for them?
Once their new arrangements were in place, the couple had protection designed around their circumstances as they were now, rather than the circumstances they’d been in years earlier.
Their new life insurance was designed to cover their larger mortgage, while the family income benefit provided an additional layer of protection for their children’s ongoing needs.
There was another outcome they hadn’t expected.
Despite arranging a greater overall level of protection, the combined premium for the new arrangements was broadly similar to what they had already been paying for their existing cover.
That won’t be the outcome for everyone. The cost and availability of protection depends on factors including age, health, lifestyle, the type and amount of cover required and the insurer’s underwriting.
For this particular couple, however, reviewing their arrangements meant they were able to obtain protection that more closely reflected their current circumstances without a significant increase in what they were already spending.
Is your life insurance still doing what you intended it to do?
This wasn’t a couple who’d ignored life insurance.
Quite the opposite.
They’d taken the responsible step of arranging protection when they bought their first home.
The problem was simply that life had changed since then.
That’s something we see regularly.
You arrange protection around a particular moment in your life — buying your first home, getting married or having your first child — and then the policy quietly sits in the background.
Meanwhile, everything else keeps moving.
You might change jobs.
Your income might increase.
You might move house and take on a larger mortgage.
Another child might arrive.
Your priorities might change.
The policy you arranged several years ago may still be perfectly suitable. But unless you review it, how do you know?
What should you consider when reviewing your protection?
If your circumstances have changed since you arranged your life insurance, there are some useful questions to consider:
- Does the amount of cover still reflect your mortgage and other financial commitments?
- If you have children or other dependants, what would happen to the family’s finances if your income suddenly disappeared?
- Would your family need a lump sum, an ongoing income, or potentially a combination of both?
- Has the cost of your existing cover changed?
- Have there been other changes in your circumstances that could affect what protection you need?
- Do you understand exactly what your existing policy covers — and what it doesn’t?
Reviewing your protection doesn’t automatically mean replacing it.
Sometimes the right conclusion will be that the cover you already have remains appropriate.
The important thing is understanding what you have and whether it still matches what you need.
When did you last review your life insurance?
If you’ve moved home, had children, changed your mortgage or simply haven’t looked at your protection for several years, we’d be happy to help you review where you stand.
You don’t need to know what type of protection you need before speaking to us.
That’s part of what the conversation is for.
You can call us on 01270 250900, send us an enquiry and ask us to call you back, or book an initial conversation at a time that suits you.
The starting point is simply understanding what you already have and what you’d like your protection to do.
This case study is based on a real client’s experience, with identifying details omitted to protect their privacy. It illustrates one particular set of circumstances and should not be taken as an indication that the same outcome will apply to everyone.
Protection policies, including life insurance, family income benefit and critical illness cover, are subject to individual underwriting and acceptance terms. Premiums and cover will vary depending on your personal circumstances and the provider selected.
This article is for general information only and does not constitute personal financial advice. The suitability of any course of action will depend on your individual circumstances.
Protection products such as life insurance and critical illness cover are not investments and have no cash-in value at any time.
Approved by 2plan wealth management Ltd on 8th September 2026