Times change – and it's just as true of insurance products. Insurance has a long history and over the decades, various investment and insurance products have been produced and marketed. While they might have been regarded as innovative and capable of filling client's needs back in the day – times do change. And these older plans, or "legacy" products can become ineffectual - and they could be costing you money.
The financial services market is more transparent than it used to be as well. Technology has led to a reduction in operating costs. Competition has increased and financial products have evolved to offer better solutions for clients.
While there are far more products available than before, other 'older' products have been removed from the market and are no longer being offered to clients. So, if you're holding on to one of these legacy products it might be time to examine exactly what you're getting for your money.
Not sure if you have a legacy product? Here are some examples:
- Old savings and insurance products that are bundled together
- Old insurance bonds, which were innovative at the time, but are often redundant now
- Outdated superannuation funds
You shouldn't feel like you just have to throw out your policy simply because it's old – there are some products which are still relevant today and may fill your needs. It's not a matter of the time that a product has been in force that determines whether it still works.
If you feel you're not getting the performance you want from it, or you're stuck with high fees or limited liquidity, or perhaps it simply doesn't meet your needs and goals any more – then it might be time for a change.