HELP! I need to get my premiums down!
We’ve all been there – something unexpected happens and suddenly your budget starts looking a bit too tight for comfort. What can you cut down on? Often, one of the first things that comes to mind is something like Insurance. After all, it can seem as if we are paying and paying and not getting anything out of it, right? You may be thinking about cancelling your policy due to costs. But before you make that move, consider the following statistic:
The average age of most Trauma claimants is between 40-49. However, the average cancellation age for Trauma covers is 43.
Those “average” clients who cancelled and then suffered an illness could have received a payout that would have put their premiums in a very different light – if they had only held on to their policies. Typically, even if you have been paying premiums for 20 years, your total premiums paid pales in comparison to the positive effect that a large lump sum claim can have in the event of a serious illness.
So what do I do now?
Put down that cancellation letter, stop fretting over your bank statements and give your adviser a call to get the ball rolling on a policy review. They understand that financial situations can change and they want to help you – but first you need to let them know you need help! Your friendly adviser can take a good look at any situational changes that you have been through and ensure that the cover you currently have is appropriate for what you need.
Why is my adviser so important?
We live and breathe the insurance industry. We have had access to rigorous product training courses and are the first people to know when an insurer makes an improvement or adjustment to the benefits they offer. We have seen many clients in many different situations and it is our job to leverage that experience to construct the appropriate solution for you. In short, we (Advisers) are the experts in this field. Nobody is better suited to tailoring your insurance to suit both your current life stage and your current budget.
But I went through this process before I first took out cover - why should I do it all again?
There are many life changes that can help to reduce your premium. For example – since you took out your insurance policy, have you:
Quit smoking for 12 months or more? Premiums are roughly 30% lower for a non-smoker.
Changed jobs? Some occupations are less risky or physical and therefore attract a lower premium.
Had an improvement in health? If your premium was loaded for a health risk such as weight and you have lost weight then it is possible that your premium can now be reduced.
Paid off some or all your mortgage? Part of your cover may have been to address this large debt and can be reduced to match the current outstanding balance.
Even if nothing in your life has changed but your budget, your adviser can also help you to consider ways to restructure or reconsider your cover. Talk to your adviser about changing options like premium review periods, payment terms, waiting periods, excesses etc. which can make a dramatic difference to the premium you pay.
But it is important to be aware that your cover may be protecting more than just yourself. For example, all of Asteron Life's Personal Covers automatically includes $10,000 free Kids trauma cover for each dependent child regardless of how many children you may have. You can also add additional protection (up to a maximum of $200,000) for just $1 per $10,000 of cover. Their Life Cover also includes a Funeral Conversion benefit allowing you to convert up to $30,000 of your Life Cover to a level premium after 10 years of Loyalty or you reach the age of 65. Partner's Life income, mortgage repayment and household expenses benefits all include a payment in case your partner or child becomes unwell and needs you to take time off to care for them. Your adviser can explain exactly what cover you could lose inadvertently by cancelling any of your benefits.
Sounds good – what’s my next move?
We understand that our clients lead busy lives and can’t necessarily devote a lot of time to researching the ins and outs of the industry. That is why we strongly encourage you to contact an Adviser and let them know if you feel your premium is becoming unmanageable. There is no better person to help you restructure your covers to address the biggest financial risks of your life.
Please contact our expert Insurance Adviser
ph: 06 870 3012
m: 0210 391 899
Shaun can talk it through with you over the phone, via email, skype or meet with you in person to help you decide what's best for you and your family.
We're always here to help you make the best decisions based on your individual needs, current situation, and goals. Don’t have an adviser? Call : 06 870 3012 or Click HERE to request an Adviser Calls you
Shaun Nicol is a New Zealand Registered Financial Services Provider: FSP272065
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