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8 personal insurance tips & tricks
- 2 May 2024
- by John Green | Financial Advisor
- 5-minute read
Insurance is one of those ‘boring but important’ topics. Luckily we love it! Although personal insurances (like Life Insurance, Total and Permanent Disability (TPD), and Income Protection) can be complex to navigate, it is possible to gain clarity and feel comfortable with what you do and don’t need. Discover eight personal insurance tips and tricks to get you started… then speak to us – we can help you get the right coverage for your needs.
1. Give yourself true peace of mind
One of the top reasons people get insurance is to alleviate worry about how you would pay unexpected medical bills, how you would get by if you couldn’t work, or how your kids would be taken care of financially should the unthinkable happen.
But, remember, it’s not just ‘having insurance’ that matters – it’s about actually having the right coverage so that it really is a useful safety net if and when you need it.
They can also help you navigate the application and claims process, and can advise on adjustments to your cover when your needs change.
2. Evaluate your insurance through super
If you pay for insurance through your super, find out what you are covered for.
Keep in mind, these are group policies so they may not suit your individual needs. Plus, if you also have insurance outside of super, check you are not doubling up unnecessarily as you may be paying for the same thing twice.
Also, as premiums are automatically deducted from your super, it is easy to loose track. Over time, paying for insurance via super means you will have less at retirement unless you’ve been topping it up along the way.
Remember, you don’t have to pay for insurance through super – the decision is yours. A Financial Advisor can help you decide what is right for you.
3. Check you are not over-insured
Don’t pay too much in premiums for things you don’t need!
When you work with a professional, you can tailor your insurance to your specific needs. You may not need Life Insurance if you don’t have kids, for example.
Things can also change over time, which may result in you being over-insured. Maybe your kids have since grown up, or you’ve paid off your home loan now. You may be able to start trimming back some of your insurance coverage and pay less in premiums.
4. Revisit your insurance needs
You may need more or less coverage at different points in your life, which is why insurance is not set-and-forget.
As your circumstances change (be it a pay rise, a new home loan, having a child or nearing retirement), your insurance needs may change too.
Review your insurances at least every two to three years to make sure what you have still suits your needs.
5. Puzzle it together
Insurances like Income Protection and Total Permanent Disability (TPD) can fit together like a jigsaw. For example, if you have one you may need somewhat less coverage from the other.
Having a professional look at your situation holistically ensures you will have the coverage you need without over-insuring unnecessarily.
6. Renegotiate you insurances
When was the last time you checked you are getting the best possible deal?
In addition to comparing premiums, consider making use of any multi-policy discounts and other offers providers give, like health & wellness programs that some insurers offer.
7. Talk to an expert
Despite what some TV ads claim, insurance is a complex area.
A professional can help you navigate the fine print, explain what is and isn’t covered, compare providers, and recommend a solution that matches your unique needs.
8. Claim applicable tax deductions
Don’t forget that some insurance policies may be tax deductible, so in effect you could be getting money back on your premiums.
Your accountant can tell you what deductions you could claim.
Speak to a professional to ensure there are no nasty surprises at claim time, and enjoy true peace of mind.
Contact us
We have friendly and experienced Financial Advisors, including personal insurance specialists, who can help you get the right coverage for your needs.
Contact us and we’ll help: +61 3 9810 0700 |
