The status quo might be hunky dory
Determining whether you’ve got the right level of insurance cover can be difficult. Too little and you put your family under immense pressure and stress if the worst happens. Too much and the pressure may come on to keep up with payments.
While its sounds simple, achieving the balance of coverage and cost-effective life insurance requires expert insight and understanding.
We’ve heard of some in the industry pressuring clients to change life insurance policies with the offer of lower rates. While these offers can be tempting, the subsequent cover may not suit the situation of the individual. Which means they can be left high and dry when they need to make a claim.
We would never take this approach for two reasons:
- When we help clients with their policies, our aim is to have them walk away with a safeguard for their families at a rate they can afford. It’s as simple as that. Offering a cheapie that won’t actually help them in a crisis is disingenuous. It’s betting on the crisis never happening. We know this isn’t a safe bet.
- It’s unsustainable. A good reputation is extremely important, especially in a small country like New Zealand. Have you ever had anyone ask you for an insurance recommendation? We need to be the insurance service that everyone recommends.
In saying this, there can be times when a policy change is needed. We suggest considering these points if you’re deciding whether or not to make the shift.
- When you start again, you run the risk of losing some of the benefits of your current policy. In terms of your health, this means your current status becomes the baseline for your policy, which might impact any future claims. Check the loading and exclusions of the new policy to make sure it’s not going to leave you disadvantaged.
- Does the new policy really save you money in the long run? Sometimes new policies can be packaged to look cheaper and better but are really not much different from what you already have. Take a good look at the fine print.
- If the rate of your current insurance is an issue, it can pay to first check with your broker if this can be re-jigged to be more affordable without losing your security. Often this can be done with only minor changes to your cover.
- Put in a calendar regular insurance check-ins to make sure your level of insurance is correct. Insurance can often be taken out in busy times (such as when you grow your family or buy a house). Policy reviews will help you decide if any alterations are needed to suit your current situation.
- Sometimes a change for the better is needed, such as if your health or financial circumstances have improved since you took out the policy. In these cases, sometimes a new policy will be needed, rather than making significant changes to your existing one.
If you’re mulling it over we’d suggest sitting down with one of our brokers for a no-obligation assessment and straightforward discussion on what’s on offer.
We can quickly compare and contrast your existing policy with any new offer, explain any points where you could lose more than you gain, and suggest any areas of improvement.
We take pride in making sure all answers make genuine good sense. If it is time to make the switch, you’ll be able to sleep easy knowing that your decision was well informed. Which is, after all, the true value of insurance.
