Review your life and income protection cover at least once a year as a practical reminder, and sooner whenever a change could alter what your household would need. That annual check is a useful habit, not an official deadline: MoneyHelper advises reviewing income protection regularly but does not set a fixed interval.
Why review both types of cover?
Life insurance and income protection protect against different financial shocks. Life insurance pays out if the insured person dies; income protection replaces part of their earnings if illness or injury prevents them from working. Having one does not automatically provide the protection of the other. MoneyHelper’s income protection guide explains the distinction, including how income protection differs from critical illness insurance, which pays a one-off amount for a specified serious illness.
MoneyHelper puts the reason for checking into practical terms: “Circumstances can change over time, so review your policy regularly to make sure that it would still cover what you need.” The guidance does not prescribe a yearly, two-yearly or other formal review cycle.
When should you review your cover?
Put a yearly reminder in your calendar so the review is not forgotten, but do not wait for it if a major change affects your finances or responsibilities. Consider checking your cover after:
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- Having a child or taking on responsibility for another dependant.
- Taking out a mortgage or materially changing your mortgage or other significant debt.
- A substantial change in income, household expenses or how much each person contributes to shared costs.
- Starting a job with different sick pay or workplace benefits, or leaving a job that provided protection.
- Changing your work pattern or becoming self-employed, if that changes the income your household would need to replace.
A new child or mortgage may increase the need for life cover. A new job with stronger sick pay, by contrast, may reduce the income gap that private income protection needs to fill. These are reasons to reassess the figures, not automatic instructions to buy more or less insurance.
One insurer-specific example should not be mistaken for a general rule: Aviva says it reminds its customers about their cover around a year after they reduced it. That describes Aviva’s process, not an industry-wide review standard. Its guidance also says its own customers do not need to report health or lifestyle changes after cover starts, while advising them to check their policy conditions. Reporting requirements can differ, so follow the wording of your own policy.
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What to check in life insurance
Ask whether the payout and remaining policy term still fit the financial needs the cover is meant to address. Review debts, mortgage or rent, dependants’ needs and other household income. Also check who receives the benefit and whether the amount would still provide the intended support.
Check how the payout changes over time:
- Level cover: the insured amount stays fixed, so rising costs can reduce what it buys.
- Decreasing cover: the payout falls over the term and is commonly designed to track a repayment mortgage.
- Increasing cover: the payout rises over time; check how that increase works and whether the policy still suits its purpose.
Include workplace death-in-service benefits in your household picture, but do not treat them as permanent without checking: cover linked to a job may end when you leave that employer. MoneyHelper’s life insurance guidance discusses the factors to consider when assessing how much cover may be needed.
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What to check in income protection
Compare the policy’s terms with essential household costs, savings and any sick pay or other workplace support. The shortfall between those resources and the income you would need during illness or injury is central to deciding whether the existing cover still fits. Income protection commonly replaces only part of earnings, rather than all of them.
- Insured income: how much earnings the policy would replace.
- Deferred period: how long you must wait before payments can begin; compare it with savings and employer sick pay.
- Incapacity definition: the circumstances in which the policy considers you unable to work.
- Conditions and exclusions: what is covered and what limitations apply.
- Policy term: when the cover ends, and whether that still matches the period you need protection.
- Premium basis: how the premium is set and whether the cost remains suitable for your budget.
Do not compare income protection as though it were critical illness cover. The former is designed to replace part of income during incapacity under its policy terms; the latter pays a lump sum for a specified serious illness.
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Does a review mean you should switch or increase cover?
No. A review is a chance to compare the current policy’s price and terms with your needs; it does not, by itself, mean you should change anything. Before cancelling or replacing a policy, make sure the replacement has been accepted, is in force and its first payment has been made. MoneyHelper warns that replacement cover may cost more as you get older, may not cover pre-existing health conditions, and a cancelled policy may not be reinstated.
If the terms are difficult to compare or your circumstances are complicated, MoneyHelper suggests speaking with an independent financial adviser or specialist broker. Ask how the adviser is paid: they may charge a fee or receive commission from insurers.
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