One in four homeowners have moved house since taking out protection cover according to Vitality, but 32% have never reviewed their policies despite their change in circumstances.
Analysis by the health and life insurance provider found that more than half of 2,000 policyholders questioned (63%) said they looked at their policies after moving house but made no changes. People often focus more on protection when buying their first home, with 21% taking out life insurance, 23% choosing income protection and 26% opting for critical illness cover at this life stage.
Moving home is often both exciting and stressful and typically involves lots of upheaval, so it’s understandable that protection can fall down the priority list. However, any major change in personal circumstances, whether that’s a move, marriage, divorce or a change in income, means it worth reviewing any existing cover to ensure it still meets your needs.
Andy Philo, director of strategic partnerships at Vitality, said; "Moving house often marks a new chapter – with new priorities and financial responsibilities.
"Having protection that reflects those changes – and the life they are living today – is essential, not just for peace of mind but to ensure it continues to offer the right level of support when it’s needed most.”
Why a protection review is important
If you don’t review your protection policies regularly, there’s a risk that you could end up with gaps in your cover. This could potentially leave you financially vulnerable if your personal circumstances change, such as developing a long-term illness, or losing your job.
Mr Philo said: “A review of existing cover can help ensure it still fits, and may highlight opportunities to broaden protection, such as adding income protection or critical illness cover for more comprehensive support.
"We also know that when people engage with their policy, they are more likely to keep it in place and benefit from the full value of their plan. Yet protection can only deliver this value when it evolves with the person it’s designed to support.”
