There's never a dull moment in the economy, but 2022 has been a particularly big year on that front. Looking for tips to manage your cover in times of increasing costs? Here are some helpful insights from Senior LifeDirect Adviser, Ben Hindin.
Tip #1: Keep calm and carry on
“When cost of living increases, people inevitably look at reducing their expenses – and insurance is often one of the first things that disappear from people's radars.” says Ben.
“But the thing is, insurance is a lot more valuable than people often realise, and cancelling cover can have serious consequences. For example, if you had Covid and it's left you with persistent symptoms, by cancelling your insurance policy now you may end up in a worse off position, and maybe not even be able to obtain cover in the future.”
“So, before making any decision, make sure you contact us. Our friendly adviser team can help you understand the potential downsides of cancelling your insurance, and if needed, find solutions to keep your policy affordable – so that you don't have to give up on an important level of coverage.”
Tip #2: Make sure your cover is fit-for-purpose
“A lot has likely changed in and around your life since you took out cover. So, it's a good idea to make sure it's still fit-for-purpose.” says Ben.
“Take rising interest rates, for example. With mortgage repayments going up, if you own a home, it's all-the-more crucial to make sure that you have an appropriate level of financial protection. When it comes to mortgage protection insurance, insurers usually allow you to increase cover, to factor in interest rate adjustments. But terms and conditions vary from provider to provider, so get in touch if you'd like to find out more.”
“The same goes for any other type of cover. If anything has changed since you took out cover, get in touch: we can help you identify and plug any protection gaps you might have.”
Tip #3: Consider income protection
“A lot of people think that their biggest commodity is their home, but it's actually their ability to earn an income. Your earning power allows you to meet your mortgage or rent payments, pay your bills on time, and so on. So protecting your income is about protecting your hard-earned lifestyle.” says Ben.
“Now, income protection insurance is not appropriate for everyone: it depends on your needs, goals, circumstances. For example, how long would you be able to cope financially, if you or your partner were suddenly off work due to illness or injury? If you answered 'not long enough', well, income protection can take care of that stressful what-if.”
“If you're concerned about how much it may cost, the best place to start is our quote compare tool. You may even realise that income protection is more affordable than you think, and the peace of mind it can give you is invaluable.”
Tip #4: Talk to us
“At LifeDirect, we love all-things-digital when technology makes life easier for Kiwis. But behind the screen, and on the other end of the phone line, we're also real people who know insurance inside and out.” says Ben.
“Not quite sure what you may need? Or simply would like to make an informed decision, with confidence? Our friendly team of insurance advisers are always happy to have a good chat, answer your questions, and make sure you get the most appropriate cover for your needs.”
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.