The Power of Now versus The Consequences of Delay
I keep saying to clients “the healthiest you are when applying for insurance is today….. in most instances you will not receive a better offer of terms then how you present today”
Prior to Christmas 2019 I prepared an audit report with recommendations for a business colleague. Instead of taking the time to act on the advice (which he knew he had to take) he said he would “look at the report over Christmas and get back to me in the new year”.
During the Christmas break after an extensive mountain bike ride he had some health related issues which he was advised to be investigated on his return. But after having had a well-rested time away with family, the condition did not seem to bother him further and he did not pursue the recommended investigations.
The insurance review finally happened in April 2020 and after completing the pre-approval insurance applications, and disclosing the Christmas biking issue, the insurance company advised that “until such time as the investigations are completed, we are unable to offer any insurance terms at this time”.
As a consequence the much needed additional insurance is now more difficult to obtain and my colleague is currently no longer insurable. Furthermore, he is stuck with his current substandard insurance program which has exposed his family and his business to unnecessary financial risk.
And the moral of the story
Just do it now; don’t procrastinate. Have your annual audit review.
Level Premium: Making Insurance Affordable
When it comes to insurance we are here to help you make smart choices. One of the ways you could save money on your life insurance policy and ensure your premiums are affordable long term, is by choosing level premiums.
What are level premiums? Most life insurance premiums increase with age, and once you get into your 50s the increase is approximately 11% per annum and becomes increasingly unaffordable as your risk and the likelihood of claiming increases. However, with a level premium policy, you pay a fixed premium until you reach age 65 or 80*. As life expectancy is 78 for a male and 82 for a female 80 is the logical level term.
*Premiums may still change if you choose to have your benefits linked to the Consumer Price Index (CPI) or the insurance provider changes its underlying premium rates or.once you reach 65 or 80 your premiums will then increase with your age.
Why it could be a smart choice for you …
- No premium increase with age – Knowing that your premiums will not increase with age until you reach age 65 or 80 allows you to budget more easily.
- Long-term affordability – Although a level premium option will cost you more initially, it could cost you less in the long term. You can also choose to level just a portion of your cover that you need to take into retirement.
- Quick and easy – You don’t need to undergo any medical or financial underwriting to level your Life Cover if you don’t increase your sum insured.
Call or email us to discuss using level premium options in your insurance portfolio.