Does this situation sound familiar? You purchased a life insurance policy several years ago to protect you and your family in case the worst happened, but as you’ve got a bit older, those life premiums seem to be creeping up and you’re not entirely sure you’re getting good value.
It’s a common scenario for the over 50s in Australia: juggling the need to protect their family and income with a need to balance the household budget.
But life insurance isn’t just a set and forget purchase. It can pay to review your policy regularly and compare it with other options to see if you can slash your premiums without compromising on your cover.
Why reviewing your life cover can save you money
There’s a number of reasons why your premiums can keep creeping up.
Even if the cost of your cover doesn’t automatically increase as you get older you could still find you’re paying too much every month.
Insurers increase their rates from time to time and this can seriously add up.
Your policy also may not reflect where your needs today compared to when you first took out life cover.
Your finances and health may have changed, while getting older sadly means we’re a bit more susceptible to conditions like heart disease, diabetes and cancer.
But switching life cover doesn’t automatically equal high premiums.
It’s why it’s worth comparing cover. You can easily see if there’s a cheaper policy available that is more reflective of your needs and offers the same level of protection.
When you should review your policy
How has your life changed since you took out life insurance? Perhaps you’ve paid off your mortgage. Maybe your children have moved out and are financially independent.
In both these situations, your current policy may be costing you more than you need to pay.
But there’s other situations where you may be underinsured. Maybe your partner has lost their job or you have higher debts.
That doesn’t mean you should pay top dollar for new cover. But it does mean it’s an opportunity to review and compare what policies are available.
It’s why it can pay to compare and switch with Life Insurance Comparison. Our trained specialists can review your options and find you affordable cover from our panel of 10 insurers.
Not reviewed your policy recently? Get started today.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.