Share this
Life’s full of changes, and as you move through its different stages, it’s important to check that your personal insurance still fits your needs and future plans.
So, when was the last time you reviewed your insurance cover?
If it’s been a while then please have a think about why you originally took out the cover and ask yourself if it’s still meeting those needs, or if those needs have changed.
To help you with this, we’ve asked our partner, Monument Insurance, to share some key insights into what you should consider when reviewing your insurance plan.
What to consider to keep your insurance plan relevant
1. Understand how insurance premiums are calculated
Familiarise yourself with the factors that influence your insurance premiums. These may include age, health status, occupation, and lifestyle choices. By understanding these elements, you can make more informed decisions about your coverage.
Think of it this way: just as you wouldn't pay for a gym membership you never use, you shouldn't pay for insurance options that don't fit your life. By familiarising yourself with how your premiums are determined, you can ensure you're not overpaying for coverage you don't need. It's about aligning your insurance costs with your real-life needs, which can help you save money and stress in the long run.
Understanding these dynamics is the first step in taking control of your insurance plan. So, whether you're a health-conscious non-smoker or someone with a risky hobby, knowing the specifics can help you tailor your policy to your unique lifestyle.
2. Is Your Current Coverage up to date?
When reviewing your insurance consider any changes in your circumstances since you took it out or last reviewed it and what you want it to achieve to protect what's most important to you.
How often you need to review your cover largely depends on how quickly (and how much) your needs are changing. That's why it's crucial to regularly review your current coverage. Does it still meet your needs? Is it providing the protection you and your loved ones require? These are questions worth asking every so often.
Imagine your insurance as a safety net, always ready to catch you when you fall. But if that net has holes because your policy hasn't kept up with your life, it might not be as safe as you think. Regular reviews help ensure your coverage remains relevant, giving you peace of mind knowing you're well-protected against the unexpected.
Taking time to assess your coverage might sound tedious, but it's an act of self-care. It ensures that you and your whānau can confidently face whatever life throws your way, without worrying about whether your insurance will back you up.
We always recommend a yearly review, but we do recommend getting in touch if you've hit any of these usual common milestones since your last review:
- Having a new baby
- Buying a house
- Paying off debt
- Landing a new job
- Getting married or separated
- Starting a business
- Becoming an empty nester
Of course these are just some examples, everyone is different. So, the rule of thumb is anything important that's changed since you took out your insurance then it's time to review your cover.
3. Streamlining Your Policy by Removing Unnecessary Options
Ever feel like your insurance policy is packed with extras you don't need? You’re not alone. Many people find themselves paying for bells and whistles that no longer serve them. Streamlining your policy by removing these unnecessary options can not only simplify your coverage but also save you money.
Think of it like decluttering your home. Just as you might get rid of clothes you no longer wear, your insurance policy can be tidied up by cutting out options you don't use. This makes your policy leaner, meaner, and more tailored to your life as it is now.
By refining your policy, you ensure that every dollar you spend on insurance is working hard for you. It's about making your coverage as efficient as possible, so it does exactly what you need it to do—nothing more, nothing less.
4. Embracing Lifestyle Changes: Updating Your Smoking Status
Kicking a smoking habit is a massive achievement—congratulations if this is you! Beyond the health benefits, quitting smoking can also lead to a pleasant surprise on your insurance premiums. It’s important to update your insurer about your new non-smoking status, as this can significantly reduce your costs.
Insurance companies often charge higher premiums for smokers because of the associated health risks. So, when you quit, you're not just choosing better health for yourself, but also potentially unlocking savings on your insurance. It's a win-win!
Updating your smoking status in your policy is a simple step that can have a big impact on your finances. It's all about making sure your insurance reflects your current life, and in this case, your healthier lifestyle.
5. Evaluating Automatic Coverage Increases
Many insurance policies come with automatic coverage increases, which might sound great at first. However, these increases can sometimes outpace your actual needs or financial goals, leading to higher premiums. It's essential to evaluate these automatic adjustments and decide if they align with your current situation.
Think of it like automatic upgrades on your phone plan. While more data might be nice, if you’re not using it, you’re just paying extra. The same goes for insurance. You don’t want to pay for more coverage than you actually need.
By regularly reviewing these automatic increases, you maintain control over your coverage and costs. This step ensures that your insurance plan continues to serve your needs effectively without unnecessary financial strain.
Remember an Advisor can help
Insurance doesn't have to be a solo journey. With so many options and considerations, having a trusted adviser by your side can make all the difference. Seeking personalised support can help you make confident, informed decisions about your insurance coverage.
Monument Advisers are here to support you when making plans for the future. We will help you navigate changes to your insurance cover and provide personalised advice tailored to your unique situation. There are no fees or charges associated with this advice.
Having professional support means you're not just guessing when it comes to your insurance. Instead, you're making educated choices, backed by expert knowledge. This personalised approach ensures that your insurance plan is truly aligned with your life, giving you peace of mind and the confidence to face the future.
Plus please remember that this type of conversation doesn't always mean your insurance costs go up, it can also be a time where you can get rid of unnecessary coverage and costs.
As a HealthCarePlus Member, you can talk to a nationwide team of Monument financial advisers who can provide you with personalised advice on Health and Life Insurance.
Monument has been our appointed business partner since the early 1990’s to provide financial advice to our members on life and health insurance products (HealthCarePlus is not legally able to provide financial advice).
They are the experts and can talk specifically about your individual needs. Plus they have access to all the main New Zealand insurance providers so can explain which of their many plans are best suited to your needs.
So to speak directly to your local Monument adviser, please click the button below to book a free, no obligation chat with them.
Leave a comment