By Philippa Billings, Chief Advice Officer, Otivo
Insurance is easy to set up once and never think about again, which is precisely how so many people end up with cover that no longer matches their life. Your cover is a snapshot of your circumstances the day you arranged it, and circumstances move. Reviewing it isn't busywork, it's what keeps the protection pointed at the right target. Here's when a review is worth doing.
Quick answer
You should review your insurance whenever your circumstances change significantly, and periodically otherwise. Key triggers include buying a home, having children, a change in income, a new relationship or separation, and paying off debt. As at July 2026, a regular review, such as annually or every couple of years, helps catch changes that don't have an obvious trigger.
Why does insurance need reviewing at all?
Because your cover reflects the situation you were in when you set it up, and life rarely stands still. The amount that suited you with a new mortgage and young children may be too much once the loan is paid and the kids are independent, or too little if your commitments have grown. Cover that's never revisited slowly drifts away from what you actually need, which is how people end up either over-paying for protection they no longer need or dangerously short of it.
What life events should trigger a review?
Certain moments change your needs enough to warrant a look. Buying a home adds a large debt worth protecting. Having children adds years of future costs. A significant change in income shifts what you'd need to replace. A new relationship or a separation changes who depends on you. And paying off major debt reduces what your cover needs to account for. Each of these is a natural prompt to check your cover still fits.
How does your cover drift out of date?
Quietly, and in both directions. As you pay down debt and your dependants become independent, you may be holding more cover than you need and paying for it. As your family and commitments grow, a default or older level of cover can quietly fall short of what's now required. Because default cover inside super doesn't adjust itself to your life, the gap between what you have and what you need tends to widen unless you actively check.
How often should you review without a trigger?
Even without a major life event, a periodic review is worth doing, something like once a year or every couple of years. This catches the gradual changes that don't come with an obvious prompt, such as slowly rising living costs or a mortgage steadily shrinking. Setting a regular reminder turns reviewing your cover into a small habit rather than something you only think about when it's already out of date.
What should a review actually check?
A good review covers a few things. Whether the amount of cover still matches your needs, using a needs-based estimate. Whether you have the right types of cover for your situation. Whether the cover you hold inside super still suits you, and how the premiums are affecting your balance. And whether anything has changed that your policy should reflect. Working through those turns a review from a vague intention into a concrete check.
Frequently asked questions
How often should I review my life insurance?
At any major life event, and otherwise every year or two. Regular reviews catch both the big changes, like a new mortgage or child, and the gradual ones that don't come with an obvious prompt.
What life changes affect my insurance needs?
Buying a home, having children, a significant income change, a new relationship or separation, and paying off major debt all shift what you'd need your cover to provide. Each is a good reason to review.
Can my insurance become out of date?
Yes. Cover set once reflects your circumstances at that time, and it can drift from your needs as life changes, leaving you either over-insured or short of what you'd actually require.
Where to from here
Keeping cover in step with your life is what a review is for. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a personal insurance inside super module that helps you understand how much personal insurance you might need, based on your dependants, debts, income, age and existing cover. It's a useful prompt whenever your circumstances shift.
Sources
- ASIC MoneySmart — reviewing your insurance — moneysmart.gov.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.