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.
For most of our products, we offer two ways to structure your premiums:
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.
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.
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.
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.
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.