5 Hacks to get more cover for less this EOFY
EOFY is just around the corner, which means massive savings are up for grabs for all sorts of products—life insurance included.
Here are 5 simple steps to maximise your life cover and save money while you’re at it.
1. Check whether you could be getting more cover for less
Less really is more. Why take out multiple life insurance policies when you can bundle everything you need in one?
Juggling multiple policies is not only more to manage (who wants to spend double their time on paperwork) but potentially more expensive, too.
In fact, an adviser from Life Insurance Comparison has found in some cases, having a bit more cover can actually cost you less. For example, in the case of lump sum life insurance, being covered with $500,000 is cheaper than $450,000 and $1 million is cheaper than $950,000.
2. Shop around for price and features
This is the first step you should take before purchasing or renewing your life insurance.
Take the time to shop around, compare your options and get an understanding of what’s available in the market.
If you’ve been with a particular life insurer for a long time, you could be paying too much. You may be pleasantly surprised to find a better-suited cover with another life insurer, or simply on another policy with the same insurer.
Likewise, if you’re new to life insurance, it pays to shop around before you buy.
Finding the best policy to suit your individual requirements will get you and your family the most value out of your life insurance.
3. Lock in a policy while you’re young (or sooner rather than later)
Age matters when it comes to life insurance.
Young people can generally lock in lower rates because they’re less likely to need to make a claim.
That doesn’t mean young people don’t need life insurance. Income protection and trauma cover are worth considering for anyone who’s working, has debt (such as a mortgage) or dependents who rely on them financially.
Plus, securing level premiums for life cover as early as possible will help you pay less for life insurance over time.
Don’t understand level premiums? Read on.
4. Choose a policy structure that suits your needs
Don’t be fooled by the low starting rate of stepped premiums.
Stepped premiums rise over time. Alternatively, level premiums only rise at the rate of inflation, not in relation to risk. This means you’ll be paying roughly the same rate at age 50 as you were paying when you were only 25.
Applying for a level premium when you are young is a great way to get more for less in the long run. Unfortunately, many young policyholders miss this opportunity and opt for stepped premiums as level premiums are more expensive upfront.
Signing up for a level premium now means you could end up saving big in the long run.
5. Compare (again)
Once you’ve found a life cover that suits your needs and budget, remember to review your policy annually. This ensures you’re getting the best bang for your buck, as life insurers regularly update their policies.
Speak with a qualified life insurance adviser at Life Insurance Comparison to find out if you’re still on the best policy for your needs and budget. A quick review can go a long way.