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Insurance Guidance

How to assess what insurance cover you need

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Let’s be honest, there are a lot of different insurance cover options out there. Whether it’s personal insurance like life insurance or business insurance - or life insurance for business - the range of cover options may seem confusing. However, the variety can play in your favour.

Variety means insurers like Chubb Life Insurance can tailor a policy to your unique life situation. But how do you understand which policy is right for you? What small business insurance do you may need? And what is the right level of life insurance for your family? Understanding insurance cover can seem tough to get your head around, but you can better understand with a bit of research, self-assessment, and talking with an expert.

This guide will equip you with what you need to know to assess what insurance cover you may need.


When the best time to assess your cover options?

There's never a wrong time to assess what life insurance cover you may need. In saying that, there are certain milestones in life when it can be particularly beneficial to consider your insurance cover options. These significant events in life may often coincide with big changes to your personal or financial situation.

1. Changing a job

Whether you’re getting a pay increase or decrease, getting a new job can be an excellent time to assess your cover options. Changes in your new role that may affect which insurance cover options are best for you include:

  • the risks involved with your new gig
  • any change in salary
  • your new employer may have an employee discount with your insurer.

Starting a new role may be exciting and stressful at the same time. Helpful cover options to consider may include Income Protection Insurance or Trauma Cover

2. Getting married

Marriage can be one of the most exciting times in your life. So much so, it may be easy to get caught up in the moment and forget about the importance of your insurance cover. But considering life insurance options when getting married can provide you peace of mind that your future together is protected. Potential aspects of marriage that may affect which cover options you need include:

It’s often recommended that both partners have their own life insurance policy, as each person will have their unique needs. Read our guide on saying ‘I do’ to life insurance - how much cover do married or de facto couples need for more insight.


3. Buying a house

Whether you’ve recently purchased a property or are about to, buying a house can be a helpful time to assess your insurance cover options. For most people, a property is their largest investment. So, it can be well worth making sure you have the best suitable insurance cover options to meet the commitments of your mortgage. Things to consider include:

  • the size of your new mortgage
  • how many incomes will be responsible for making mortgage payments
  • how many people will be living in the house.

Buying a house is an exciting time. But it's important not to forget about your insurance. Read our buying a house checklist for more advice on considering life insurance when buying a home.

4. Having a child

Chances are that a newborn baby will give you a different perspective on life in general, not just when it comes to insurance. Life insurance can offer you peace of mind knowing that your wee one will be looked after should something ever happen to you. Having a child can affect which cover options you choose in various ways, including how large your family is and potentially going down to one income in the early stages. Read our guide on life insurance and blended families for more considerations on protecting your family with insurance.

5. Retiring

One of the main reasons for life insurance can be to protect loved ones that rely on your income should you pass away. When you’re retired, you probably won’t be earning much. However, you may still carry debt which is where a form of life cover could still help.

Assessing your insurance cover around the same time as life milestones can help ensure your insurance is always up to date. Read our helpful guide for a more in-depth look at when you should review your insurance policies.

What’s the difference between personal and business insurance?

When assessing what kind of cover you may need, it can be essential to understand the difference between the types of insurance available to you. Each type of Chubb Life Insurance comes with varying options for cover.

1. Personal Insurance

As the name suggests, personal insurance insures yourself so that your loved ones are looked after if something ever happens. Chubb Life offers three main personal cover options to make it easier for you to assess what cover you need, including:

  • Life insurance
    We’ve touched on the benefits of life insurance already, but it’s cover that can give you and your family peace of mind. Life insurance has different cover options to suit your unique living situation.
  • Income protection
    Sometimes known as income cover, income protection insurance can pay you a monthly amount to make up for your loss of income if you were to become disabled due to an illness or injury. There are various benefit options within income cover to suit your unique situation.

Top tip: life insurance can also be beneficial if you’re single. Check out our guide that explores life insurance for single people

2. Life insurance for business owners

If you’re lucky enough to run your own business, it can be important to protect it with life insurance for business. Chubb Life offers a range of comprehensive business insurance cover for all sorts of business scenarios.

Choosing between these products will depend on your industry and budget. Within these products sit a range of cover options like:

Understanding the key differences between personal insurance and business insurance can be a great place to start when assessing your cover. Read our guide that explores the differences in more depth

Questions to ask yourself when considering insurance cover

Although it’s often easiest to talk with an Insurance Adviser when assessing what insurance cover you need, it can be helpful to start by asking yourself a series of questions. Your Adviser will ask you many of these questions, so thinking through your answers will help you prepare.  

1. Who's relying on your income?

If something were to happen to you, who'd be negatively impacted financially? Perhaps your young children or elderly parents rely on your income to get by? Asking this question can help you determine how much cover you may need to ensure your loved ones could maintain their lifestyle, if you weren't there to support them.


2. How much cover can you afford?

It’s all well and good saying that you want to be covered for anything and everything, but you’ve got to be able to afford your insurance cover too. Consider your budget to figure out what's an affordable figure for you. An online budget planner tool can be a helpful when planning your finances.


3. What debt do you have?

If something happened to you, what debt would be passed on to your loved ones? Unfortunately, many types of debt wouldn’t just disappear if you passed away, including your:

  • mortgage
  • credit card debt
  • personal loan.

Taking stock of your debt can help you determine the amount of cover you need to make sure your family don’t have to foot the bill.


4. How healthy is your lifestyle?

Consider your health and lifestyle and whether there's anything you could do to improve your wellbeing. The answers to these questions could all impact how much cover you need and your premium. 

When thinking about your health, think about more than just how often you have takeaways, like:

  • how often do you exercise?
  • do you have any ongoing illnesses or injuries?
  • do you have a family history of a particular illness?

There are online resources to help you maintain your overall health and wellbeing.


5. What are the biggest risk factors in your life?

When it comes to insurance cover options, what cover you need and your premiums may be heavily impacted by risk. Are you a thrill-seeker? Is your line of work dangerous? These factors could all impact which cover is best suited for your situation.

Benefits of talking with a Financial Adviser

When it comes time to assess what insurance cover you need, one of the easiest places to start can be talking to a qualified Insurance Adviser. An Adviser will go over an in-depth series of questions so that you can make intelligent decisions when it comes to your cover. They’ll help you break down insurance jargon to help you feel confident in understanding the ins and outs of your policy. Read our guide with tips on how to pick the right Insurance Adviser for you.


Want to learn more about the different types of cover available?

Being able to properly assess what insurance cover you need is essential. It allows you to choose the best option for your unique situation and ensure you’re not paying for cover you don’t need. Asking yourself these questions is a great place to start. Otherwise, it can be beneficial to talk to an Insurance Adviser. They can offer assistance with personal insurance and business insurance

Ready to get started?

Find the right cover for you 

To make sure you choose the right cover for your needs, you'll need the help of a qualified Insurance Adviser. We can connect you with an Adviser near you. Leave your details and someone will give you a call for a quick, no-obligation chat about your personal insurance needs.