As a general guideline in Singapore, financial advisors typically recommend doing an annual review, though every two years is also acceptable if you’re consistent about it or experience major life changes. Regular reviews keep your coverage aligned with your evolving needs and circumstances.

Beyond routine reviews, specific life events may also signal it’s time for an immediate check:

These life changes often create new financial responsibilities and risks that your existing policies may not adequately cover:

• Major life milestones: Marriage, divorce, or childbirth
• Significant financial changes: Income changes, a new job, or revised financial goals
• Policy renewal periods: Particularly for health insurance, as premiums and benefits can change
• Approaching age 40: Insurance premiums often increase at this stage
• Lifestyle or asset changes: Moving home, changing occupation, or buying a car or property

These are examples of how your needs may evolve faster than policy terms, hence the key principle here is that insurance planning should revolve around specific financial goals, not following a one-size-fits-all approach. Reviewing periodically helps avoid being under-insured or paying for coverage that no longer serves you.

A comprehensive insurance review involves four critical steps that help identify gaps, eliminate redundancies, and optimise your coverage.

1. Gather your current coverage details

Compile all active policies including life, health, critical illness, personal accident, and disability income insurance. For each policy, note the coverage amount, premium, benefits, exclusions, and renewal dates.

Don't overlook employer-provided group coverage or credit card travel insurance—these affect what additional protection you need.

2. Calculate your actual protection needs

Assess your current financial obligations. These could include:

• Outstanding mortgage or HDB loan
• Dependents' living expenses
• Education costs
• Income replacement needs

In Singapore, it’s also important to factor in CPF MediSave balances and MediShield Life coverage when evaluating health insurance gaps. Your protection needs should reflect today's financial reality, not what made sense when you first bought coverage.

3. Identify coverage gaps and overlaps

Compare your existing coverage against your actual needs.

Common issues include:

• Insufficient death benefit for growing families
• Critical illness coverage below current salary level
• Duplicate hospitalisation coverage across policies

Many Singaporean policyholders also overlook early critical illness coverage or severe disability riders that provide interim support.

4. Review cost-efficiency and policy performance

Evaluate whether you're paying competitive premiums for your coverage level. Newer policies may offer better benefits at similar costs, or you might qualify for better rates if your health has improved.

💡 MoneySmart Tip: Also check if participating policies are meeting projected returns and whether investment-linked policies still align with your risk tolerance.

💵 Working with a MoneySmart Advisor

At MoneySmart, our MDRT-licensed financial advisors can help you navigate complex policy terms, compare options across multiple insurers, and structure coverage tax efficiently. They offer customised, step-by-step guidance on areas like:

• Identifying (actually beneficial) riders,
• Term conversion recommendations for whole life policies, and
• Coordinate coverage across family members to avoid gaps and redundancies.