Balancing the effectiveness and affordability of your personal insurances is a key goal in the financial planning process.Here are some money saving tips to consider if you want your cover to be both comprehensive and cost-efficient.
But how can you keep the cost of cover down without compromising your protection? How can you retain adequate levels of cover if your budget is suddenly under pressure? Fortunately, there are several options open to you for making sure your premiums are kept to a minimum.
Streamline the structure of your cover
The first place to look for savings is to analyse how your cover is structured to see if it can be organised more efficiently. Even minor tweaks to your strategy can make savings that really add up.
Alternately, you may even fund annual premiums via a tax-paid rollover from any complying super fund, which again allows you to fund premiums more tax-effectively.
A change of premium payment frequency can also reap surprising savings. For example, if your cashflow allows you to pay premiums annually it can save 8% compared to paying monthly.
Consolidating cover from other insurers into your cover with the insurer may result in savings by way of our large benefit amount discounts and eliminating any duplication of policy fees.
Seek opportunities for health related premium reviews
You may be able to arrange a reassessment of your premiums if there have been improvements in your health and lifestyle. Perhaps you were a smoker when you took out your policy, but have since given up for at least 12 months. You can sign a declaration and apply for a review, which can potentially save up to half the cost of your policy as a smoker.
Similarly, if your original cover had premium loadings related to your weight, previous medical conditions or hazardous pastimes, then any positive changes to these factors may mean it is worth asking for an underwriting review to remove the loading.
Some insurers now also offer an annual reward for taking part in fitness regimes, etc.
Consider options for limiting cover
There are several possibilities for adjusting cover levels to help contain premium costs, although these should only be considered as “last resort” approaches if circumstances become difficult. They should also be done in consultation with one of our advisers to ensure your protection is not unduly compromised.
One simple option is to decline your annual CPI increase in cover. Limiting cover in this way will avoid increased premiums that are associated with increased cover levels.
Contact one of our advisers on 1800 674 435 or EMAIL