Life insurance resolutions for the new year: What you should consider
Joretha Bothma
As the new year begins, it’s the perfect time to reflect on your financial health and establish resolutions that will secure you and your loved ones’ financial futures.
Joretha Bothma, Head of Product Development, Underwriting, and Claims at Momentum Life Insurance, advises that "regularly reviewing and updating your life insurance is a simple yet powerful step toward financial resilience."
Life insurance plays a vital role in building financial resilience and incorporating it into your annual habits can provide peace of mind for the year ahead. Here are the key resolutions to consider:
1. Review your beneficiaries
Life events like marriage, divorce, or the birth of a child may require an update to your beneficiaries. Ensure your life insurance policy reflects your current intentions.
Action: Compile a list of beneficiaries and assess whether they align with your current situation. Make it a habit to review annually.
2. Assess your cover needs
Your life and financial responsibilities evolve, so it's essential to reassess whether your life insurance cover remains sufficient.
Action: Evaluate your obligations and risks, such as your bond, education costs, outstanding debts, and risk of disability and critical illnesses, and adjust your cover accordingly.
3. Consider additional cover
Major life milestones, such as a new job or a growing family, may warrant increased cover.
Action: Consult with a financial adviser to determine if supplemental cover is appropriate.
4. Integrate life insurance into your estate planning
Life insurance is a critical component of estate planning and can assist to cover estate duty and executor fees, helping you transfer wealth and safeguard your legacy.
Action: Work with your financial adviser to integrate life insurance into your broader estate planning solution.
5. Explore rider benefits you haven’t previously considered
Enhancing your policy with rider benefits can provide added protection.
Action: Review options such as premium waivers for disability and critical illness, as well as funeral benefits, to enhance your existing cover and enjoy more comprehensive protection.
6. Commit to annual financial reviews
Consistency is crucial for financial resilience.
Action: Schedule a recurring date each year to meet with your financial adviser and ensure your cover aligns with your evolving needs.
Building lasting financial resilience for 2025
As the new year begins, consider making a life insurance review an integral part of your annual financial planning. This isn't just about updating policies; it's an investment in your peace of mind and the long-term financial security of you and your loved ones. As Bothma emphasises, “A life insurance review is a simple yet powerful way to build resilience against life's uncertainties.”
Rather than waiting for problems to arise, make it a habit to review your life insurance annually. This ensures your cover keeps pace with life's changes, like a growing family or shifting financial goals. As Bothma points out, “Life insurance isn't just a financial tool; it's part of a larger strategy for protecting your legacy.”
By regularly updating beneficiaries, reviewing coverage amounts, and exploring policy enhancements, you establish a flexible foundation that evolves with your life. This proactive approach supports both your financial goals and the future of your loved ones, ensuring your life insurance remains a strong and reliable source of financial security.
