Managing the cost of insurance

Keep your Insurance

Balancing the budget has been getting tougher for a while and it’s natural to look for savings.  However, whilst it’s true that premium rises for personal insurance have contributed to cost-of-living increases, it has never been more important to protect yourself and your family.

Rising premium costs can mean that the significance of personal insurance is forgotten. From income protection to Life, Total and Permanent Disability (TPD), Trauma, and private health insurance, these policies form a crucial safety net.

Let’s have a look at the reasons these insurances matter, and ways to manage the premium costs.

Why maintain personal insurance?

1. Income Protection insurance serves as a lifeline if illness or injury prevents you from working. It provides a replacement income ensuring you can meet financial commitments without draining savings or facing hardship.

2. Life Insurance provides financial support to your beneficiaries upon your passing, offering reassurance that loved ones can maintain their standard of living and pursue their goals.

3. Trauma Insurance delivers a lump sum payout if you’re diagnosed with a serious illness or injury, covering medical expenses, and allowing you to focus on your recovery without financial strain.

4. Private Health Insurance provides you with timely treatment options ensuring you can access medical services promptly and receive the care you need without unnecessary delays.

Managing insurance premiums

  • Regularly reviewing your coverage ensures that your policies align with your current circumstances, such as changes in income, debt levels, and family dynamics, by assessing your insurance needs periodically.
  • When exploring premium options talk with your insurer about your affordability concerns and explore alternative coverage options or premium adjustment strategies. They can help you find the right fit for your budget and long-term financial plans.
  • Bundling policies can streamline management and save you money, as many insurers offer discounts for combining multiple policies, including private health insurance.

Exploring other savings options

  • Consider adjusting coverage amounts to tailor them to your current needs, potentially reducing premiums while still maintaining adequate protection.
  • Optimise benefits by reviewing policy features, consider removing or adjusting optional extras to lower premiums without sacrificing essential coverage.
  • Review waiting periods for your income protection policy, potentially reducing premiums by opting for a longer waiting period.  Remember you’ll need resources such as savings or accrued sick leave to get you through this time period.
  • Review cost-effective options for insurance within your superannuation fund, noting that premiums deducted from your balance may affect your future retirement savings.

Seek professional advice

When seeking professional advice, it’s essential to consult a financial advisor. They can tailor strategies to your goals by assessing insurance needs and exploring your coverage options.  You can talk with an independent advisor, or your Super fund may also provide access to an advisor. Additionally, schedule an annual policy review to ensure your coverage remains adequate for your current needs, and the premiums are cost-effective.

Keep in mind that personal insurance forms an important safety net, providing peace of mind against life’s uncertainties. Despite rising premiums, consider your options to manage the affordability of these essential policies and ensure that you and your family remain protected.

Let’s talk about moving to the next level. 

“Money is a terrible master but an excellent servant.”
P.T. Barnum
American author