When it comes to your life insurance cover, there is no ‘one size fits all’ solution. At Zurich, we put you in control, with flexible options that help you adapt your cover to suit your changing needs.
Here are six ways that may allow you to get more out of your policy.
1. Review your insurance needs regularly
Life doesn’t stand still, so your insurance may also need to change when your lifestyle does. For example, you may need to increase your cover when you take on greater financial responsibility like getting married, buying a home or starting a family. On the other hand, your insurance needs might decrease once you’ve paid off your debts or your children become financially independent.
Your financial adviser can work with you to develop a long-term strategy for your life insurance. This ensures you always have the right level of cover based on your life stage. They’ll also work with you to regularly review your cover and adjust the level if your needs have changed.
Find out more about adjusting your life cover to suit your needs
2. Choose how to pay premiums
At Zurich, we try to make our insurance policies as affordable as possible. One way we do this is by giving you the option to pay your premiums annually instead of monthly. This allows us to reduce the premium price because it means we spend less time processing transactions.
For many of our policies, you can also choose between stepped and level premiums.
- Stepped premiums are calculated each year based on your age. They start off lower in cost and increase as you get older.
- Level premiums are averaged out across the duration of your cover. They generally start higher in cost but end up being cheaper in the long term. However, level premiums can still change or be reviewed.
The option you choose can have a significant effect on the cost of your policy over your lifetime. In general, stepped premiums may be more suitable for younger people planning to hold their policies for a shorter time, while level premiums may be more beneficial if you’re planning to hold your policy for life. It is important to note that regardless of whether you choose stepped or level premiums that the premium rates can be reviewed by the life insurer as described in the policy terms.
3. Turn indexation on or off
Our insurance policies give you the flexibility to switch indexation on or off. When you turn on indexation, your sum insured automatically increases each year. This feature is designed to help protect your cover from the impact of inflation. But if you need less financial protection over time, you can also choose to remove indexation, keeping your premiums lower over time.
4. Consider getting insurance through super
When you take out insurance cover through your super, premiums are debited directly from your super. If you’re working and receiving superannuation guarantee payments, this can be a tax-effective strategy. That’s because super contributions are typically taxed at just 15%, rather than at your marginal tax rate, giving you more to spend on premiums.
And if you’re self-employed, you can claim a tax deduction on your personal super contributions. So if you contribute money to your super to cover the costs of your insurance premiums, this amount is also tax deductible.
5. Enhance your health and wellbeing
Life insurance is not just about having peace of mind for the future, it also gives you the freedom to enjoy life to the full. That’s why we offer free digital health services to help boost your overall wellbeing. If you’re eligible, you’ll gain access to self-assessment tools and online resources so you can kickstart your physical and mental health goals.
You can also make the most of our free, personalised health coaching – designed to combat anxiety and depression. And if you’re a new policyholder with a premium loading for Body Mass Index, our coaches can work with you to lower your blood pressure and cholesterol level.