Insurance tips for sorting out new year finances

- Life insurance quotes

Insurance policies aren't always the first thing on people's mind after the new year celebrations, but it’s a good time of year to get your affairs in order, including checking and updating all of your insurance policies.

Life changing events are happening all the time, and it's crucial to let your insurance providers know, otherwise your cover could be void. Things like buying a house, having children and changing jobs are all things that need to be up to date on your insurance policy. This is particularly important when it comes to home, life, health and payment protection cover.

Recent research shows over ten million people in the UK could have unsuitable protection cover after failing to update their protection policies. Over half never even think to change their details on their insurance and some do not even realise it’s necessary.

The new year is a great time to have a good look at all your finances, considering insurance for all areas. Once you take out an insurance policy, it’s vital that you keep it updated or you could be putting you and your family at financial risk.

Make sure you are educated regarding your policy. Nearly three quarters of policy holders (73 per cent) do not know how much they are insured for or what they would receive if they needed to make a claim. In January people often assess all of their finances which is a great opportunity to consider additional insurance, but also find out if your existing protection cover continues to be right for your changing needs. The cost of updating an existing policy can be minimal so you shouldn't automatically think that premiums might rocket. If necessary seek professional advice, as having the wrong kind of protection can create a false sense of security that's often realised too late.

Here are some additional insurance tips to think about when sorting out your new year finances.