Life insurance – Are you getting value for your premium dollar?

If you have not reviewed your personal insurance cover in some time, there is a real possibility you may be paying more than you need to.

Why now is the time to review your life insurance?

The Australian life insurance market has undergone some significant pricing changes in recent years, and many policyholders may not realise how this is affecting what they pay.

Insurers have been adjusting their pricing models, particularly around premium structures and long-term sustainability. At the same time, competition for new business has increased. As a result, new policies are often being offered with discounted premiums, while existing policyholders continue paying higher rates for similar levels of cover.

It is not uncommon for someone who has held their cover for five years or more to be paying up to 40 percent more than someone taking out a new policy today.

This difference is not necessarily due to changes in risk. It is largely driven by how insurers are pricing new business compared to their existing client base.

What this means for you?

If you have not reviewed your personal insurance cover in some time, there is a real possibility you may be paying more than you need to.

That does not automatically mean replacing your policy is the right course of action. Your current health, the quality of your cover, and the policy definitions you hold are all important considerations. However, understanding how your existing arrangements compared to what is available in today’s market is an important step in making an informed decision.

Ask yourself the following questions:

1. Has is been 3 years or more since I reviewed my life insurance cover?
2. Does my existing insurance cover align to my current personal financial circumstances?
3. Do I have enough cover to manage my debts should death or disablement occur to me or a family member?
4. Do I have enough cover to maintain my family’s lifestyle should death or disablement occur to me or a family member?
5. Do you now if you insurance premiums are competitive and value for money in the current marketplace?

A timely reminder as we approach tax time

With the end of financial year approaching, it is also an opportune time to review your broader protection strategy, particularly income protection.

Consider the following:

• If you were unable to work due to illness or injury, how long could you maintain your current lifestyle?
• Do you have income protection in place?
• If so, is it still aligned with your current needs and circumstances?
• Did you know that income protection cover is a tax deductible expense?

For many people, their ability to earn an income is their most valuable asset. Ensuring that income is appropriately protected is a key part of a well-structured financial plan.

How Exant Advisory can help

Exant Advisory has partnered with Personal Risk Professionals to provide clients with access to specialist advice in life insurance and income protection.

If it has been a while since your cover was last reviewed, or if you would simply like to understand how your current arrangements compare to the broader market, we encourage you to speak with your Exant adviser. They can facilitate a review with Personal Risk Professionals to ensure your cover remains appropriate, competitive, and aligned with your overall financial strategy.

To facilitate a personal insurance review with your Exant adviser, complete the form below or call 07 3218 3900.