Congratulations on your new job. Now, it’s time to find a new spot to park the car and a new haunt for your daily caffeine hit. But what about new insurance?
While you’re busy scouring the streets for the best double espresso in the city, it’s worth assessing your insurance situation with equal gusto. It’s time to consider how your new role and new income may affect the main factors that set some insurance premiums – primarily your health, lifestyle and income.
Why does insurance matter when you change jobs? There are many reasons.
When your job changes, your income changes. And, whether that’s in an upward or a downward direction, there’s a good chance your spending and your lifestyle will change as well.
For example, say you step into a senior role and your workload and travel increases. You and your family may make the decision for your partner to reduce their work to manage the house or children. In this scenario, the family becomes more dependent on your income than ever before. If you were unable to work for a while it wouldn’t be long before you and your family were feeling the financial strain.
What if your new job results in a salary decrease? Can you maintain your existing policy payments and still protect your income?
It’s also worth considering how your new career will affect other insurance policies, particularly life, income/mortgage cover and total and permanent disablement cover. Have you made a radical lifestyle change – like giving up smoking – to take on your new role? This is likely to have an impact on your insurance premiums.
Taking on a new role or a new career is also an ideal time to assess the suitability of your income insurance. And if income protection is something you don’t have yet, this could be the perfect time to get started.
What is income protection insurance?
Income protection insurance safeguards your ability to earn an income if you suffer from a long-term illness, disability or other loss of income. It gives you the ability to ensure financial continuity for you and your family.
Consider how well you would be able to maintain your lifestyle if you weren’t able to work for a period of time. And we’re not talking creature comforts like overseas holidays or a second TV. We’re speaking about important everyday expenses like:
Paying the mortgage
Meeting credit card or hire purchase repayments
Buying weekly groceries
Paying for school fees or sporting activities for the kids
Covering the cost of your recovery in a way you choose
Our best advice for anyone changing jobs is to take a look at three main insurance areas:
Income Protection Insurance
Total and Permanent Disablement
Starting a new job is a major life event. And like any of life’s big events, it provides the perfect reason to reassess your insurance cover.