We understand when our clients get frustrated when their premiums increase. Although we have no control on how or when insurance companies review their premiums, we can help you understand why and think of options if the cost becomes hard to manage.
Why do premiums increase?
For most insurance policies, premiums are calculated based on age, gender and smoking status. These all influence your likelihood of making a claim. From the insurers point of view the younger you are the cheaper your premium will be, as the chances of you making an insurance claim is lower.
Medical advancements and new technologies mean that we have access to better health care - but it also means that cost of claims go up year on year. This is also calculated into the premiums customers pay.
When policy premiums go up, it is most likely due to a combination of these two factors.
What can I do?
We can help you take a big-picture look at your insurance and make sure you are covered for what you need to be – that you are getting the most for the money you are spending and making sure you are not paying for things you don’t need or want. To do this, your adviser needs to understand your personal circumstances and the risk you are facing.
There is also an option to 'level' your life or trauma insurance premiums. Level premium insurance means that you pay the same premium throughout the life of the policy. Although the initial investment is higher than a regular rate for age policy, you could be looking at saving thousands of dollars in the long term.
Have a look at the video below and get in touch if you want to find out whether this would work for you.