If you’re concerned about your premium, please talk to your financial adviser. They can work with you to see if it makes sense for you to:
- remove some extra-cost options you may have selected
- lower your cover amount
- switch off inflation protection (which indexes your cover amount) at each policy anniversary
- extend your waiting period on your income protection policy (i.e. the time you must be disabled before benefit payments start)
- reduce your benefit period on your income protection policy (i.e. the total amount of time you may be eligible to claim income protection benefits)
- explore the opportunity for tax deductions for your premiums. If you’re eligible, this can help to reduce the impact of premium increases
Additionally, you can contact us
While we can’t talk to you about your personal circumstances in the same way your adviser can, we can talk to you about your policy, and the options available under your policy.
In this section...
❯ 5 ways you can adapt your cover
❯ What can affect your premium?
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Every 12–18 months, ask yourself these 5 questions…
Circumstances change, sometimes for the better and sometimes for worse. So every 12-18 months, make sure you ask yourself, have you:
Welcomed any new members to the family or taken on new responsibilities such as caring for an older relative?
You might want to add a new beneficiary to your policy or increase your amount insured to cover for your growing family’s future needs and the increased financial responsibility you have.
Does your policy have a health loading? Has your health improved – or have you stopped smoking?
Personal risk factors such as smoking and your Body Mass Index (BMI) add what are called ‘premium loadings’ to your cover – which means you pay a higher premium than someone who doesn’t have this risk factor.
If your health has improved (e.g. you’ve lowered your BMI or your lifestyle has changed recently), get in touch with your financial adviser to review your policy and determine if these loadings can be removed to help lower your premium.
Paid off large debts?
The amount you’re insured for is to cover for your future financial needs should something happen to you. If you’ve significantly paid down large debts, your needs may have changed.
You may want to think about reviewing your sum insured to ensure it’s right for your needs – not too little, and also not too much.
Taken on any new debts?
Being insured for the right amount is an important factor of cover suitability. Customers usually need a level of cover that can, as a minimum, pay off any existing debts should something happen to them. If you’ve taken on new debts, your needs may have changed.
You should review your cover with your financial adviser to ensure you’re covered for the right amount.
Employment changed or got a promotion?
Your income is your biggest asset over the course of your life. If your income has changed up or down, your future needs have likely changed too – so you’d benefit from reviewing your sum insured with your financial adviser.
This is especially important if you’ve got income protection. That’s because your benefit amount, and the premium you’re paying, are directly linked to the personal income we have recorded on your policy.
If your income has changed, get in contact with your financial adviser to review your policy.
If you answered YES to any of these questions, you could benefit from reviewing your cover with the help of your financial adviser.
6 ways you can adapt your cover to your current needs:
One of the most common misconceptions people have is that insurance is set and forget. In fact, your life insurance cover is designed to move with you through life as your circumstances change.
1.
Choose the amount you’re insured for
Your premium is closely linked to the total amount you’re insured for. And it’s important to make sure you’re covered for the right amount, not too little, not too much.
2.
Choose to pay stepped or level premiums
For most of our products, we offer two ways to structure your premiums:
- Stepped premiums are recalculated each year based on your age at renewal – they start lower and increase as you get older.
- Level premiums are ‘averaged out’ across the duration of your cover, which means they start higher in the early years but generally end up being cheaper in the later years.
Choosing the premium type that’s right for you can have a big impact on the lifetime cost of your policy, and your financial adviser will be able to help with forecasting that impact.
3.
Choose to accept or decline
Indexation, if available, is an automatic increase to your sum insured to ensure the value of your policy is not eroded by the impacts of inflation.
But you’re in control – it’s important to know that as the sum insured increases, the premium you pay may also increase. This means there are circumstances in which you might want to decline the indexation offer. Speak with your financial adviser about what is best for your personal circumstances.
4.
Remove any loadings you might have
Personal risk factors such as smoking, dangerous hobbies or occupations, or a high Body Mass Index (BMI) may add what’s called a ‘premium loading’ to your cover – which means you pay a higher premium than someone who doesn’t have those risk factors.
Any loadings like these are recorded on your Policy Schedule. So, if your health improves or your lifestyle has changed recently, get in touch with your financial adviser to review your policy and determine if these loadings can be removed to help lower your premium.
5.
Choose your payment frequency
Depending on the product you have you can choose to pay your insurance at different instalments such as monthly, quarterly or annually. Did you know that you may be able to reduce your premium by paying annually?
Managing cash flow is important to people and the payment frequency can be a good lever to use in your personal plan. Choose the payment frequency that is right for you.
6.
Review your policy inclusions
Life Insurance can range from basic cover through to more comprehensive types of cover. The more comprehensive cover is, the more benefits and features are included, and the more expensive it becomes.
Insurance may also come with additional cost options which can expand the range of events that you can claim on, or that reinstate cover after a claim.
Where your circumstances permit you can review your policy inclusions with your adviser and choose what is applicable to you now.
In the end, you’re in control – you can review your cover with your financial adviser and adapt it to your needs.
Stay in control of your policy - book a cover review with your adviser every 12-18 months.
Keeping you protected
If you’re concerned about your premium, please talk to your financial adviser. They can work with you to see if it makes sense for you to adjust your cover.
Additionally, you can contact us. While we can’t talk to you about your personal circumstances in the same way your adviser can, we can talk to you about your policy, and the options available under your policy.