I have a lot of conversations with people about their life situation and there are two areas I often see where people are not assessing their risk correctly.
Often people think that when they draw the loan from the bank and buy a house they need their insurance cover to be in place by settlement date. In their mind, this is when the risk starts.
They are in fact at risk from the day they go unconditional on the property. That’s the point where they need to settle or face a substantial loss if they are unable to complete the purchase. An insurance plan that at the very least covers the mortgage should be in place as soon as possible.
The other situation is when a couple are expecting their first child. People seem to think that they need cover in place around the due date.
Infact the risk starts from the day you find out you are pregnant. Pregnancy is daunting enough for a first time mum and if she was to lose her partner or their income while pregnant that would create a very uncertain future.