Affordability and insurance: how getting advice helps

At LifeDirect, we’re committed to helping Kiwis find appropriate insurance coverage for their needs, and affordability plays a key role in the process.  

We recently sat down with insurance adviser Laura Lincoln to discuss common misconceptions around insurance costs and how LifeDirect can help clients find (and keep) affordable cover.  

Misconceptions around insurance costs 

When it comes to taking out cover, there are many options to suit many different levels of needs and budgets. But perceived affordability remains a barrier to achieving financial protection. 

“Unfortunately, many people assume that insurance is just too expensive for them, and they don’t explore their options because they believe they can’t afford it,” says Laura. “However, there are many different solutions available and different ways to structure the policy to match coverage to your budget. For example, depending on your needs, you may look at selecting level premiums, which unlike stepped age-related premiums don’t increase with age.” 

If affordability is on your mind, our quote compare tool is a great place to start. But it can also be a good idea to speak to one of our friendly insurance advisers. “When you speak to an adviser, we can break down the solutions and help you explore more options than if you were doing it yourself.” 

Managing the cost of an existing insurance policy 

With the rising cost of living, you may be wondering how to manage your existing insurance policy without losing key layers of financial protection.  

Here’s what Laura says: “If affordability is a concern, we can help you consider reducing your cover to a level that’s still appropriate for you while lowering your premiums. We usually discuss it over the phone, because we can go more in depth with the detail. In other words, we do everything possible to help clients achieve affordability and keep their cover in place. If they cancelled their cover, not only they would lose their current protection, but they might also find it challenging to get new coverage in the future. They would run the risk of facing exclusions or higher costs due to pre-existing conditions – or even being denied coverage altogether.” 

Insuring your most valuable asset: you! 

When budgeting for insurance, many people often overlook the importance of insuring themselves. “We don’t hesitate to insure our cars, but when it comes to ourselves, we tend to forget about it. And yet, without you and your ability to earn an income, you wouldn’t have a car, a house, or any other material possessions,” Laura says. 

“That’s why it’s so important to put insurance spending into perspective: affordability is key, but don’t overlook the priceless peace of mind you can achieve.” 

The right policy for your needs 

As we’ve seen, affordability is essential, but make sure you don’t just choose your cover based on price. Laura suggests also checking what’s covered and what’s not thoroughly. 

“The policy you choose needs to cover your specific needs, including the risks that you’re most concerned about. And it’s essential to read the small print carefully, to understand if any exclusions might apply,” says Laura. “If you’re not quite sure where to look, give us a call. We know insurance policies inside and out! Plus, we welcome you to contact us whenever you’d like to review your cover and ensure it’s still aligned with your needs – at least once a year or more often if needed.” 

Like to know more? 

Our quote compare tool is great, but it's just one part of what we can do help Kiwis protect their future. We have a team of friendly insurance advisers on hand for any questions and support you might need. 

Give us a call on?0800 800 400, start a Live Chat or?fill in our contact form?to get in touch. We're here to help. 


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. 

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