#15 Don't under insure

by Jane Baker on 24 July 2009  |  1 comment
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If you're only going to listen to one 'what not to do with money' rule, make sure it's this one.

If you're only going to listen to one 'what not to do with money' rule, make sure it's this one.

#15 Don't under insure

When it comes to life insurance, the impact of getting it wrong could be truly awful. I know it's a really morbid thought, but one you need to face if there are people in your life who rely on you financially.

The trouble is under insuring is very common, and easily done. The homeowners among you probably took out life insurance as one small part of the bigger house buying process. But have you honestly given it a second thought since?

If you're a parent now, or you have moved on to a lovely larger property, with a not-so-lovely larger mortgage, then your protection needs have most definitely changed.

In short, as your financial responsibilities grow, so does your need for life cover. If this sounds like you, I think updating your policy is probably long, long overdue. 

It's a great opportunity to shop around a bit to check the cover you already have is good value for money. If your policy looks decidely second rate now, get switching.

Luckily, life insurance is cheaper now than it has been for seven years, so there's never been a better time to buy more.