With rising interest rates and inflation increasing costs, many people are looking at searching for ways to reduce their spending. Insurance is an area of spending that is often looked at and many people just cut it all together, with disastrous consequences if they need it soon after as it would have been in the case of Megan.
Megan* called me one day to cancel her income protection and trauma insurance because the premiums had gone up. We talked through the issues and we made some changes to the policy that reduced the premium but allowed her to keep the cover. One month later Megan was diagnosed with a 19 cm cancerous tumour which meant she had to take considerable time off work for treatment. At which point she rang me very glad she hadn't cancelled her policy. We helped her make the claim which gave Megan income during her treatment and $100,000 to pay for all the medical expenses.
There are a variety of ways to reduce premiums which need to be considered as part of your whole circumstances.
Below are some ways to reduce premiums
Increase the waiting period on your Income Protection
This waiting period is the time it will take before you commence receiving benefits. It is important to weigh that with the level of sick leave, annual leave, cash reserves, and accessible superannuation you have. But changing the waiting period from 30 days to 90 days could reduce the premium significantly.
Reduce the benefit period
Own the insurance inside superannuation
Reduce the level of cover
Pause policy
Self insure
When we make recommendations for someone to take out Income Protection insurance we consider your circumstances and structure the policy(ies) to achieve an outcome that fits within your budget but also provides the level of protection that you need.
If you don't have Income Protection insurance and would like to be protected and save money today, contact us and book a meeting in to save 15%^ on your 1st year's premium.
Contact us today to have a free confidential chat about your insurance needs.
Want to know more, see what is involved in taking out insurance in our 5 steps to protecting your income post below.
* Not her real name
^ An approximate reduction in the premium. We will discount 50% of the commission we receive which is can range between 27% and 33% which equates to a premium reduction range of 13.5% and 16.5%.