The cost of living has been top-of-mind for many New Zealand households over the past year. As prices have crept up, you might have spent some time looking at your budget, and working out what expenses you might be able to trim.
As you probably already know, insurance is the type of thing that can be extra valuable when times are tight. But if you’re thinking about how to fit it into your budget, there are options to consider. We recommend you seek advice on any potential changes before making them.
Are you prioritising the right cover?
A really good way to ensure that you’re getting value from your insurance is to chat with us about what’s important to you and what you most want protection for. As insurance advisers, we can help you prioritise financially protecting the things that you most value, to ensure you’re getting maximum protection from your insurance budget for the things that are important to you.
Consider stand-down periods
If you’re able to wait a little longer before receiving a payout for things like income protection, it can make your policies a lot more affordable. Usually, these types of cover pay out when you’ve been off work for either four weeks, eight or 13. If you have the ability to “self-insure” for 13 weeks before your insurance starts to pay out, that could be a big help in reducing the premiums. We can talk through these options as it’s important to ensure that the structure of your policies is right for your situation and objectives.
Check your levels of cover are right for you
If you took out your cover during a period of your life when you had a lot more obligations than you do now, you might find that you have more cover than you need for your situation and priorities. Once again, we can help you check whether the amounts you’re insured for are still appropriate.
Sometimes, you’ll pay a little more for extras that you might be able to manage without. We can go through your cover with you to identify any add-ons that could be trimmed, depending on your situation.
Check whether your details need updating
Sometimes, insurance policies can have a loading on premiums for things that are seen as higher risk. If your policies have any premium loadings that you think are no longer relevant, we can help you get these reassessed. If you stopped smoking a while ago, for example, or you’ve left a risky occupation, that could make your premiums more affordable.
Consider level cover, if it’s appropriate
If you’re concerned about your insurance cover becoming more expensive as you get older, you could consider a level-term insurance policy. This means you pay a bit more in premiums when you’re younger than you would on policies that have premiums that increase with your age each year, but the premium only increases with inflation as you get older. This may be worth talking about, particularly if you’re relatively young.
Check what else is on offer
An advantage of having an insurance adviser on your side is that we’re familiar with the wide range of policies that are available from insurers in New Zealand. And we can help you work through whether your current portfolio of cover is the optimum option for you.
Like to talk?
As your insurance advisers, we’re here to make sure you get the most out of your policies, so you can benefit from maximum peace of mind. If it’s time for a check-up, or you have any specific questions you’d like answered, get in touch.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.