Life insurance
change of circumstances

When it comes to life insurance you determine the pay out amount, term length and policy type at the point of application.

But, as we know things in life change, so it's important to review your policy regularly to make sure it still meets your needs.

But are you able to change your existing life insurance if your personal circumstances change?

It's common for you to be able to take out up to 50% of the original cover amount, up to £150,000.

Legal & General^[1], for example, allow you to make three special events changes, (but just once for marriages and civil partnerships).

When you change your cover amount, either up or down, your monthly premiums will change accordingly.

Depending on your policy, age and insurer you may need to answer further medical questions to secure the additional cover.

When you take out life insurance, any pay out forms part of your estate after you're gone, along with your property and any savings.

Unless you write your life insurance in trust...

However, what if you need to change the beneficiaries of your policy. Perhaps you've got remarried or had more children

Well, it depends...

If you have an absolute trust (sometimes known as a bare or fixed trust) these, unfortunately, can't be changed.

However, if you write your policy into a flexible or discretionary trust the named beneficiaries can be amended at the discretion of the trustee/s.

For more information please see our life insurance in trust page.

If you haven't written your life insurance in trust and want to change your beneficiaries you'll need to amend your will.

If you don't have a will then the pay out by default will usually go to your spouse and/or children.

Yes, you can take out multiple policies, although this will obviously mean paying multiple premiums.

So, if your current insurer doesn't allow you to make changes you have the option of an additional 'top-up' policy.

For example, maybe you took out a £100,000 decreasing term policy when you purchased your first property.

However, since then you've got married, moved house and had a child. As a result, your existing policy no longer meets your needs.

You could then either take out a level term policy to bridge the coverage gap or perhaps look at a family income benefit policy to protect future living costs.

Maybe you want to look into critical illness cover to protect your family if you're too ill to work.

When you move home, change your contact details or name you'll need to update your policy.

To do this, you'll need to contact your insurer directly to make these amendments.