Your Financial Plan is not a standstill static action plan as your situation is constantly changing and life’s events create a different need for a new set of priorities at different times. For this reason it is important to review your plan on a regular basis with a qualified planner and especially when major events such as children, change of job or new home occur.

Future proofing your insurance is about ensuring that in the future your personal insurances have the necessary options to accommodate both planned and unforseen changes. As an example: John has started a new job on a salary that is to be reviewed in 12 months time. This job has no sick leave in place so John is taking out Income Protection. John can take out cover that reflects his salary now and increase the policy with the associated time consuming underwriting in 12 months. The other option is to choose a policy that has an automatic uplift option or request that the underwriter assesses him for the greater amount now so that the policy automatically adjusts if John gets an increase in salary. John needs the guidance of a planner to select the product that has an attached option that will conveniently and cost effectively meet John’s future need.

CPI (Consumer Price Increase) options on policies achieve an ongoing future proofing of personal insurance both on the sums insured and on any benefits paid. In so many cases Income Protection policies do not have an automatic CPI increase on benefits leaving the long term disabled receiving a reduced income benefit while their expenses keep on increasing.

John Lennon said “Life is what happens while you are busy making other plans”. Often “life” is an illness or accident which prevents you both obtaining or increasing life cover. In many cases we hear people say I do not have enough cover but my health condition prevents me from being able to increase the cover and adequately protect my family. A GFI (Guaranteed Future Insurance) option on a policy provides a future proof safety net allowing an increase to the policy without underwriting at regular intervals in life like when important events such as the birth of a child or the purchase of a home occur. The same argument can be used for a young single person who says they do not need insurance; they do but they don’t realise. They need to guarantee that they can get it when something happens and they do need it.

You are aware of the present but the future is unknown. Speak to your planner about ways to future proof your personal insurances. Do not wait until it is too late.

Ask these questions.

• Do I have a CPI option on my policy?
• Do I have an auto increase or GFI option on my cover?
• Do my policies meet my needs now and in the future?

If the answer is no to any of these questions you may need to consider a change.