The end of the year offers a natural opportunity to take stock — not only of what we have achieved, but also of whether our financial arrangements still reflect the life we lead today.
A great deal can change in twelve months. Our income may rise or fall. Our family may grow. We may buy a new home, take on new financial commitments, change career direction, or simply find that our priorities are no longer what they were a few years ago.
There is an added reason to review 2026 carefully. Changes to the Cyprus tax framework came into effect on 1 January, including provisions that affect the tax treatment of certain life and disability insurance premiums.
Before the year draws to a close, there are three areas worth revisiting.
1. Consider what has changed and whether your protection has kept pace
A meaningful insurance review should begin with your circumstances, not your policies.
Think about what has changed over the past year. Perhaps you got married, welcomed a child, bought a property, or taken on a mortgage. Your income may have changed, you may have started a business, or your children may now be approaching university. Retirement, once a distant consideration, may also be coming into clearer view.
Significant life events tend to bring financial consequences with them. Yet insurance arrangements are often renewed year after year without asking whether they still serve the purpose for which they were originally put in place.
That is why it is worth reviewing your life, health and property cover from time to time. Good financial protection should keep pace with your life.
Life insurance is a useful example. Having a policy in place is only part of the equation. The level of cover should also make sense in light of your current financial responsibilities: outstanding borrowing, your family’s living costs, your children’s future education and the income your household would need to replace if you were no longer able to provide it.
A review does not necessarily mean buying more insurance. In some cases, the appropriate decision may be to adjust an existing benefit, reorganize the cover you already have or make no change at all.
At Palmyri Insurance, we believe that sound advice begins with a simple question:
“What has changed in your life, and what matters to you now?”
Only then does it make sense to consider whether anything needs to change.
2. Understand how the new tax provisions may affect you
The tax changes introduced from 1 January 2026 have implications for the treatment of certain insurance premiums.
Subject to the applicable conditions, life insurance premiums may continue to qualify for a deduction from taxable income up to 7% of the sum insured in respect of death or disability. The revised framework also extends the scope of relief to premiums relating to certain forms of permanent or temporary, total or partial disability cover.
This is more than a tax consideration. It highlights an area of financial planning that is easily overlooked: protecting your ability to earn an income.
Most of us understand the purpose of life insurance — to provide financial security for those who depend on us if we are no longer there. But there is another risk worth considering: what would happen financially if illness or an accident left us unable to work, either temporarily or permanently?
Insurance can form part of that protection through benefits designed to respond to disability or loss of income, subject always to the terms, definitions and conditions of the individual policy.
It is equally important to consider tax relief as part of the wider financial picture. Life insurance premiums and certain qualifying pension or provident fund contributions are subject to overall deduction limits. Looking at each arrangement in isolation may therefore give an incomplete picture.
Before canceling, surrendering or materially altering an existing life policy, it is also sensible to establish whether there may be tax or insurance consequences.
The revised tax framework also contains provisions relating to qualifying home insurance against specified natural disasters. Homeowners should therefore consider whether their existing property insurance meets the relevant requirements.
Tax treatment will ultimately depend on individual circumstances. Our role at Palmyri Insurance is to help you understand the insurance implications and how the different elements of your protection fit together. Where tax advice is required, this should be considered alongside the guidance of your accountant or tax adviser.
3. Ask whether your long-term plan is still taking you where you want to go
Financial planning is not only about protecting against what might go wrong. It is also about preparing for what you want to achieve.
Day-to-day commitments can easily push long-term planning further down the list. Mortgages, household expenses, children and work all demand attention now; retirement and long-term savings can always appear to belong to another day.
The end of the year is a useful point at which to bring those longer-term goals back into focus.
If you already have a pension, savings or investment plan, consider whether it remains aligned with your objectives. Are your current contributions appropriate? Has your income changed? Has the amount you will eventually need changed? And, most importantly, are you still on course for the future you are planning for?
If you have not yet started, waiting until you can commit a substantial amount is not always the best approach. In long-term financial planning, time can be one of your most valuable assets. Starting earlier allows you to build gradually and gives you greater flexibility to adjust as your circumstances evolve.
You do not need to have every aspect of your financial future resolved today. But it is worth knowing whether you are moving in the right direction.
End the year with a clearer picture of where you stand
Financial and insurance planning should never be a one-off exercise. It needs to evolve as our circumstances, responsibilities and ambitions change.
At Palmyri Insurance, our starting point is always the person behind the policy. We want to understand what has changed, what concerns you, who depends on you and what you would like the years ahead to look like.
Sometimes a review confirms that the arrangements already in place remain entirely appropriate. At other times, it reveals a gap in protection or an opportunity to structure things more effectively.
Either way, knowing where you stand is valuable.
Before the year ends, take a little time to review your financial plans and the protection you have in place.
And if you are unsure where to begin, begin with one simple conversation:
Tell us what has changed in your life this year.
We can take it from there, together.
The tax information above is provided for general information only and does not constitute tax advice. Eligibility for deductions and their application will depend on individual circumstances and the legislation in force. Advice on your personal tax position should be obtained from your accountant or tax adviser.