Why it’s important to have a product that will allow you to buy more cover in the future

Speak to your financial adviser to ensure you have flexible cover. Photo: Pexels.com

Speak to your financial adviser to ensure you have flexible cover. Photo: Pexels.com

Published Aug 29, 2023


Your needs change as your life changes – there’s no doubt about that. This is why it’s imperative to get cover that precisely matches your needs when you get your policy and can change with you as those needs change. But can you change your cover when your life changes without having to provide proof that you’re still healthy and having to undergo medical tests?

Most insurers don’t allow you to buy additional cover when your needs change without having to do medical underwriting

Many life insurance products prevent you from buying more cover when your needs change, without having to undergo medical tests. This is important for all of us to consider because our health tends to deteriorate as we get older. This means that you might not be able to get additional cover because you’re no longer insurable. Your cover could also include exclusions and be more expensive because you aren’t as healthy as you used to be.

This is why it’s important to discuss your future insurability with your financial adviser today. Will your current cover allow you to quickly and effortlessly make changes to your cover when your needs change? Like adding your children to your policy, increasing your cover when you get a promotion and have a larger salary to protect, or if you buy a bigger home and need to increase your debt cover.

Some future insurability options have many restrictions

If your cover does allow you to make changes, can you get more cover without onerous requirements and no restrictions? It’s essential to understand when you can buy more cover – does a life event, like a marriage, need to happen before using it or can you buy more cover at any time? Do you need to give the insurer proof of any or all these things, or tell them of changes in your circumstances, for example, if your occupation has changed and you’ve started smoking?

There could be restrictions to using these features, so always discuss these elements with your financial adviser to ensure that you’re getting the most flexible cover.

Another important thing to look out for when looking at your future insurability is whether this feature comes built into your policy, or if you need to pay an extra premium for it.

There are insurance companies that allow you to change your cover free of medical underwriting.

There are insurance products in the market that allow you to change your cover when your life changes, without unnecessary barriers and having to do blood tests. This allows you to benefit from the medical underwriting you went through when you were younger and healthier and helps guarantee your future insurability.

As affordability is also a big factor when we’re younger, these options enable us to close insurance gaps we might have. For instance, a client might be under-insured when they first take out their policy because they can’t afford the cover they need at that time. Having a policy that allows them to change their cover when their needs and affordability change will allow this client to increase their cover to the level they need. Best of all, they can do this with a simple email to their financial adviser and without having to do any medical tests as they would with some insurance providers.

Speak to your financial adviser to ensure you have flexible cover.

If you want to guarantee that you can buy cover in the future, hassle-free, speak to your financial adviser today to review whether you have the right insurance product for your needs.

* Parsons is chief innovation officer at BrightRock.