Written by Amanda Wilson, the Director at The Right Mortgage and Protection Network
As the job market continues to shift, more and more people are looking to switch jobs in search of better opportunities. In fact, research conducted midway through 2022 revealed that 6.5 million workers planned to quit in search of better jobs in 2023. While this can be an exciting time, it’s important for individuals to remember the impact that changing jobs can have on their protection policies.
Amanda Wilson, the Director at The Right Mortgage and Protection Network, explains that “significant life events, such as moving homes, changing jobs, or having children, can all impact the effectiveness of current protection arrangements.” In this way, families may be left vulnerable to inadequate protection or have policies that no longer work for them.
To ensure that protection policies remain appropriate, Wilson advises keeping details up-to-date and accurate. Individuals should also consider what would happen if they couldn’t pay their mortgage and how their protection policies would respond in such a scenario.
Despite life events, many people fail to consider their protection policies. But as Wilson explains, it’s critical to make protection policies an integral part of mortgage and remortgage plans, and some lenders may even require it. In this way, mortgage and protection advisers play an essential role in educating their clients on the significance of regularly evaluating their protection policies to ensure their continued suitability.
Additionally, Wilson stresses the importance of informing advisers of any significant changes in circumstances, such as job changes. By taking a proactive approach to reviewing protection policies, individuals can ensure that they and their families are adequately protected in unforeseen circumstances.
Ultimately, changing jobs can impact an individual’s protection policies. As such, advisers should encourage clients to regularly review their policies to reflect their changing circumstances. “It’s better to be overprotected than underprotected,” Wilson summarizes, highlighting the importance of ensuring policies remain adequate to protect individuals and their families.