6 tips to having the right level of insurance cover
When life is busy it can be easy to overlook the important things and take your own wellbeing for granted. But it pays to stop and consider how much your loved ones depend on you. If something were to happen to you, money is the last thing you or your family would want to worry about.
If your income stops, can insurance help?
If things are running smoothly it’s hard to imagine life being different. But what if you became unwell, and because you could no longer work your income suddenly stopped?
Like most people, if you were unable to go to work you’d probably be relieved to continue receiving most of your income. Income protection insurance offers a financial safety net so that if you become sick or injured you could continue receiving up to 75% of your income, if certain conditions are met.
And if you became terminally ill or died, life insurance may provide a lump-sum payment. This may help to pay off any debts or leave a nest egg for your loved ones.
Trauma cover could also provide a lump sum if you’re diagnosed with a listed medical condition. The benefit is you could avoid financial stress and focus on getting life back on track throughout your recovery.
Our tips to make sure your cover is right for you
1. Schedule a health check in the morning
If you need to undergo a medical exam, arrange to do so first thing in the morning. Changes to things like blood pressure and sugar levels occur during the day and can give a health assessor an inaccurate or less favourable reading about your state of health.
2. Act now
It generally costs more to buy insurance when you’re older. Health exams can be more demanding too. So it can be a good idea to put your cover in place now.
3. Pay less by getting healthy
If you smoke you’ll generally pay more for your insurance cover because the risks to your health are considered higher. Try to cut out cigarettes and you’ll save twice: your premiums will be lower and you’ll also keep the money you’d normally spend on cigarettes!
4. Consider your beneficiaries
An important feature in any life insurance policy is the beneficiaries’ clause, which determines how money will be passed on to your spouse and children. There may be tax benefits with this feature as well – you should consultant a tax adviser or accountant for more information.
5. Keep up-to-date
Be sure to review your cover if something happens in your life. Your policy may need to be updated if:
- you get married, move in with your partner or have a child
- someone in your family dies, gets married or divorced
- your income or job changes
- the amount of debt you’re responsible for changes, such as when you take out a loan or credit card.
6. Be sure your cover fits your needs
At times, insurance providers may add new features or discounts to a policy. By regularly reviewing your policy and considering how your circumstances may have changed, you can make the most of any extras. Ask whether your policy will accommodate a higher level of cover if needed down the track. And ask about family discount benefits too.
Want to know more?
To learn more about protecting your future and the different types of insurance available please contact us.