To start your insurance review, take out the schedule or renewal notice from the insurance company and go through the terms and conditions of the policy. Key points to take note when going through your insurance policy:
- Term Duration: It is important to know how long your insurance policy covers you for so that it won’t catch you off guard when it expires. This is especially important if you have a term Life Insurance policy, it will expire sometime in the future. Annually renewable policies generally continue to age 99, but there are a lot of Term Life policies in the market place that were entered into for a specific term of say 20 or 15 years. It is important to have a plan after the term has expired or plan for a renewal if you wish to continue to be insured after that.
- Insurance Cover: Know the amount of insurance cover you will be receiving in the event of an insurance claim. Then, ask yourself “is this the amount I would want to be having if I make an insurance claim right now?” Some major life incident might have occurred and the insurance cover you required might be different from what you used to require back then.For example, if you have a family, you may consider that you want to increase your Life Insurance cover to insure their well-being in case anything happens to you; You might need to buy extra Life Insurance when you just bought a new house to secure your mortgage loan repayment.Insurance policy should be tailored to suit your needs, but your needs change as life progresses, therefore it is always important to let your insurance policy ‘progress’ together with your life!
- Insurance Rider: When you purchase an insurance policy, you are most likely purchasing some insurance riders that comes along with it. Be familiar with the insurance riders in your existing insurance policy, so that you can utilize your insurance policy to its fullest.For example, Life Insurance policy could come with critical illness riders which allows you to make early withdrawal of your insurance cover for defined serious illnesses and other health related events.
- Insurance Premium: Do you think it’s really necessary to pay more for your Life insurance? Simple Life insurance is a generic product. The terms of coverage are unlikely to differ from company to company. Essentially they all cover the same risk of death or terminal illness. Are you willing to pay more for a premium brand? Are you willing to pay more if you get an agent to do all the work? Review comparative websites and Pinnacle Life to get the market price for direct to consumer propositions. You'll find a bit of D.I.Y could save you heaps.