Life is full of changes, and it makes sense for everyone to periodically take the time to review where they stand in relation to its ebbs and flows.

For instance, it can be a good idea to review what life insurance you have in place and carefully check whether it is relevant for your protection needs.

Those who are young, free and single may not feel the need to think about cover at the moment, but once you are a couple and perhaps buying a home, things can change. Perhaps you might want to look annually at what life insurance you hold to ensure that it’s sufficient.

A mortgage is often the biggest financial obligation people have, and while you need to also insure the property, life insurance is frequently essential if mortgage payments are to be kept up.

The arrival of children inevitably means greater financial responsibility. And although no one wants to think about it, if the main earner dies, then their absence will create not only a huge void, but it could also leave your loved ones in very different circumstances. They might return to work if they are currently at home caring for children for example, but then also need to have costs such as nursery fees covered. Those who are not working still make a major contribution to the family’s financial position and these replacement care costs are considerable.

So, it’s vital to assess what cover you need as your financial obligations increase - and that includes the costs over and above a mortgage. Everyone has different needs, but as a rough rule of thumb, at least ten times an annual income is a good starting point to provide an adequate lump sum.

You may also have other outstanding loans - perhaps these were taken out for home improvements - and so you might want to consider taking these into account. And educational costs could also be important - perhaps to provide for children while they are at school, or if they should wish to go to university. It’s clear that this is going to be a much higher cost for students in years to come.

Meanwhile, as time goes on, lifestyles can change - and it’s possible that outgoings will increase and a review may be necessary. You might switch to a job which is much better paid, and so increasing your life cover will make sense, depending on what is included in the employee benefits package. Bear in mind that some jobs may pay more, but provide less cover, so you may need to make extra provision.

If you become self-employed there may also be big changes in terms of what your life cover requirements are, as you’ll need to take more responsibility for protection costs.

Another reason to review is if you face health problems - you may need to disclose these to your existing life insurer - and this could either affect your ability to buy more cover, or mean you need to go to a specialist insurer. Something which many people tend to forget, however, is the potential for good news if you permanently stop smoking. To qualify as a non-smoker, you must have given up smoking and not used nicotine replacements for at least 12 months, and if you manage that, make sure you tell your life insurance provider as they may quote you a lower life insurance premium.

So, a life insurance policy shouldn’t be something you just buy and forget about, making sure what you have is right for now - and for the future - is something well worth setting time aside for.

Issued by Sainsbury’s Finance