Life cover is not one-size-fits-all
When you see life cover advertised on TV or the web, it’s easy to get the impression that life insurance is like a box of cereal. You pick it off the shelf, pay some money and take it home to your financial pantry.
But the reality of effective life insurance is quite different. It needs to fit you exactly, like a made-to-measure garment. And when something changes, your cover may need a nip and tuck to ensure the correct ongoing fit.
A life-changing experience - such as a loved one requiring major surgery - could even signal that it’s time to add an extra product to the mix, like trauma cover.
Trauma cover, also referred to as critical illness cover, can help if you suffer a specified serious illness or injury, or if you undergo a specified serious medical procedure covered by your policy. If this were to happen, your trauma cover could provide you with a lump sum payment to use any way you like.
Celebrating milestones could mean lower premiums
Reviewing your cover doesn’t automatically mean you’ll end up getting more cover. Perhaps this year the kids moved out and you downsized the family home reducing your mortgage, meaning you may want to review the level of life cover you have. Or perhaps you quit smoking? If you haven’t smoked for at least 12 months, you can apply to AMP to be considered for non-smoker premium rates. Talk to your Adviser about your options.
In January, you could contact your Adviser to talk about your situation and what may have changed to ensure you’re only paying for the cover you actually need. If you don’t have an Adviser, you can find one here.
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The content in this article is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the above constitutes financial advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.
A disclosure statement is available from your Adviser, on request and free of charge.