Keep your eye on the premiums

Paul Davies | March 09, 2017

I've recently received several Life Insurance company updates about their Income Protection premium rates, stating they are increasing them anywhere from 7-16%! 

For the particular insurers who sent them, it doesn't surprise me, as the products they have had for the past 50 years are not sustainable. They have 2 problems: The first is they have not changed with the times and their sales have dropped considerably. And they have very old products which have a bad claims history and they can't get rid of them. 

The good news is that there are some forward thinking insurers who are keeping their rates stable and some even dropping them, depending on the demographic you fit into. Some prefer a certain age group, and some prefer an occupation type, and they price their policies to attract these customers, which might be you.

So, when you receive your letter or renewal and the premiums have gone up considerably, don't just 'cop it', speak to someone who has access to all the insurers (enter shameless self plug here) to at least give you a comparison to what you have. It's also important to note that the comparisons MUST be the same as your current cover. 

So keep your eyes on your premiums and make them work for their money.