Personal insurance, such as Medical, Life, Income & Trauma cover are some of the most important back-up safety nets for when things don’t go to plan. However, when costs are rising across the board, it can be tempting to consider dropping some of your insurance in order to save money. However, this could be the worst time, as people need insurance when they are most at risk. Insurance is the most important when our ability to bounce back, both physically and financially, is at it’s lowest. During these times of economic uncertainty, we must remain focused on the bigger picture. If on the other hand you are struggling financially and unable to sustain your insurances and the protection you have in place, it’s not just a matter of cutting them. It’s about understanding how you can get your insurances to work for you differently, with reduced premiums, which is where we help. Have a read of the practical steps you can take below, and if you want to have a chat, we’re only a phone call away. 1. Review what you’ve currently got in place Every year you receive anniversary letters from your insurance company. These confirm what your new cover amounts are for the year ahead, and also what the premium is going to be. They usually send these a few weeks before the changes are made, so this is the perfect time to review your covers with us to make any changes before you start paying the new amount. Things are forever changing in our lives; our debt, savings and income may go up and down, we might change our job (e.g. from employed to self-employed, and vice versa), we may have a child, or our child might have grown into an adult and become financially independent – All of these types of events can have a big impact on what insurance you need, and how much of it. Your insurance cover might also have some ‘bells and whistles’ you could potentially look to alter or remove to bring the cost down. If you don’t understand what you’re covered for and how it works at claim time, call us and we can explain it to you. 2. Adding an excess on medical insurance Every year you receive anniversary letters from your insurance company. These confirm what your new cover amounts are for the year ahead, and also what the premium is going to be. They usually send these a few weeks before the changes are made, so this is the perfect time to review your covers with us to make any changes before you start paying the new amount. Things are forever changing in our lives; our debt, savings and income may go up and down, we might change our job (e.g. from employed to self-employed, and vice versa), we may have a child, or our child might have grown into an adult and become financially independent – All of these types of events can have a big impact on what insurance you need, and how much of it. Your insurance cover might also have some ‘bells and whistles’ you could potentially look to alter or remove to bring the cost down. If you don’t understand what you’re covered for and how it works at claim time, call us and we can explain it to you. 3. Last resort: put cover temporarily on hold Most of the insurers have options to temporarily put your cover on hold. This generally needs to meet a specific criteria, such as being made redundant, had a reduction in income or revenue, had to become a carer for your partner, suffered from a natural disaster, and other events outside of your control. During this time, your cover is generally suspended, as well as the premiums. E.g., you cannot make a claim under your insurance policy. However, if you are really needing use of these funds for something else, this is a better option than simply cancelling. Because if you cancel your cover, and try to reapply at a later stage, you have to start the whole process again. We know insurance can be tedious subject, and something you probably don’t want to spend a whole lot of time on, but it is really important to get right at the end of the day. We want your covers to be suitable to your life stage and budget. Please get in touch to have a chat if you need help, we are only a phone call away.
