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How to Review Your Insurance in 7 steps

If you read our last post, “The 10 Life Stages That Call for an Insurance Review“, you may be wondering how to review your insurance now. Good news! We have outlined seven simple steps below on how you can do this.

Michael Luck

BSc. Econ, BCom, MBus
Authorised Representatives of Millennium Three Pty Ltd
ABN 61 094 529 987
AFSL 244252

Step 1: Read your current insurance contract

Naturally, this is your first step assuming you currently have some insurance.  You can find this by referring back to your product disclosure statement (PDS). Read it to fully understand what you’re covered for (death, disability or
injury for instance) and compare this against what you’d ideally like to be covered for.

Step 2: Check the insurance policy expiry date

Check if your insurance policy has an expiry date, and if so, make note of when it is so you’re not caught off
guard. It can be a good idea to set yourself a reminder a month or two before it’s due so you can contact your
insurance provider ahead of time.

Step 3: Know your beneficiaries

An insurance beneficiary is the person, or people, who will receive your insurance payout in the event of your death.
It’s important to ensure the names you have listed down (if any) are up to date, so that your money ends up in the
right hands.

Step 4: Check if you have enough cover

To help you work out whether or now you have the right level of insurance cover, consider the following questions:

  1. How much money would your family have if you were to die or become disabled? Consider
    the amount of money you have in super, savings, shares and other assets, and existing
    insurance policies as a starting point.
  2. How much money would your family need if you were to die or become disabled?
    Consider the size of your mortgage and any other debts you have, as well as other costs such as
    childcare, education and day-to-day expenses you may be covering.

The difference between these figures should provide some guidance on the amount of insurance cover you
may want to have. However, you might need to compromise between what you’d like and can afford.

Step 5: See if there’s any insurance duplication

Like many Australians you may have insurance through super. So it’s a good idea to check this against other
policies you might have to ensure you’re not paying twice—once for insurance through super, and once
outside super. Check out what type of cover you have, as it may be worth opting out or cancelling cover that you may be paying for twice, noting you can’t always claim for the same thing through different policies.

Step 6: Compare insurance providers

If you’re not sure whether you’re getting the best deal, you might want to compare providers. Remember,
there are other considerations to take into account aside from reduced premiums, such as what level of
cover you get, any exclusions (like the treatment of pre-existing medical conditions) and whether waiting
periods apply. When you’re assessing different offers, also keep in mind if you do opt out of your current policy or cancel it, you might lose features and benefits that may be attached to it, and you might not be able to sign back up
at the same rate or with the same level of ease if you change your mind.

It’s also important to disclose your situation to your insurer honestly, or the policy might be invalid if you do need to make a claim.

Step 7: Reduce or manage your insurance premiums

If affordability is a major concern, speak to your insurance provider, as there are typically options available to manage payments and premiums without losing your current policy.   These might include reducing the amount you’re insured for, how you schedule your payments (monthly or annually for instance) and changing things like waiting and benefit periods.

Changing your insurance policy can be complicated, so if you have any questions or want assistance, please don’t hesitate to reach out. We have years of experience ensuring our clients obtain the best policy they can.

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