How often should you review your life insurance and health protection as your finances and responsibilities change?

Life insurance and health protection should not remain static as an individual’s income, family responsibilities and financial commitments evolve. Experts recommend periodic reviews of insurance cover to ensure that the financial safety net remains adequate as circumstances change.

Review life cover every 2-3 years

For a 42-year-old primary earning member whose income has risen significantly since purchasing life insurance in their 20s, Asit Rath, CEO, Aviva, recommends reviewing life cover every two to three years or following a major life event.

“Life insurance is not a product you buy once and forget about. It should evolve as your life evolves,” Rath said. He noted that a policy purchased in one’s 20s may no longer provide sufficient protection if income, lifestyle and family responsibilities have changed substantially.

Which life events should trigger a review?

Major milestones such as marriage, the birth of a child, buying a home, taking on a large loan or receiving a substantial increase in income should prompt a reassessment of life insurance needs.

A key question policyholders should ask is whether their family would remain financially secure if they were no longer around. Life cover should ideally be sufficient to replace lost income, clear outstanding liabilities and support long-term financial goals, including children’s education and a spouse’s retirement needs.

“As your responsibilities grow, your protection should keep pace,” Rath said. Regular reviews can help ensure that a policy purchased years ago continues to match the financial realities of the family.

ALSO READ: Private hospital vs government hospital cost: Hospitalisation is nearly 8 times more expensive

Why preventive healthcare matters in your 30s

Health protection also needs to form part of long-term financial planning, particularly as lifestyle-related illnesses are increasingly affecting younger individuals. For a healthy 35-year-old, Rath recommends making preventive healthcare a regular habit rather than waiting for symptoms to emerge.

Periodic health check-ups and age-appropriate screenings can help identify potential risks early. Monitoring indicators such as blood pressure, blood sugar and cholesterol can also help individuals track their health over time.

Build health protection into financial planning

Rath said preventive healthcare should be complemented by adequate health insurance, life cover and an emergency fund. Maintaining physical activity, eating a balanced diet and managing stress are equally important components of a long-term protection strategy.

“Protecting your future is not just about building wealth, but also about safeguarding your health and earning ability,” he said.

For individuals in their 30s and 40s, insurance planning therefore needs to go beyond simply having a policy. Regularly reassessing life and health protection against changing income, liabilities, family needs and health risks can help reduce financial uncertainty and ensure that protection keeps pace with life.

MUST READ: Accidental death benefit rider: Is your family financially protected against unexpected accidents?