When did you last review your life insurance policy? Contrary to popular belief, life insurance isn’t a set-and-forget product. Your needs change over time, and so should your cover. This is where financial advice becomes invaluable. With the help of a professional financial planner, you can ensure that your policy aligns with your current situation.
Why reviewing your life insurance helps you get the best value
ARTICLE
9 July 2024
3 min read
3 min read
The importance of regular reviews
Regular reviews ensure your cover meets your evolving needs. Major life events – like getting married, having children, buying a home, or a change in employment – can significantly impact the type and amount of insurance you need. Your insurance needs may also change as you pay down debt over time. Without regular reviews, you might be underinsured or paying for more cover than necessary.
A comprehensive review by a financial planner can help identify gaps in your cover or unnecessary cover or features that could be costing you extra. Financial planners use their expertise to assess your current financial situation, future goals, and potential risks, tailoring your life insurance to provide a protection that is a good fit and value for you.
AIA Financial Wellbeing Planners adding value
Case study 1: How Shane got more cover and saved money
Another example is Shane*, who found his life and trauma cover premiums had significantly increased over 12 years. Following a divorce, he needed to change his beneficiary. During a meeting with Gayle, his AIA Financial Wellbeing Planner, Shane disclosed that he had quit smoking. Gayle had him complete a non-smoker’s declaration, saving him over $400 per month in premiums.
After discussing Shane’s needs, Gayle recommended adding basic income protection, TPD cover, and a policy for Shane’s child. Despite the additional policies, Shane saved over $2,000 per year. He was delighted to have more comprehensive protection while still saving money.
Case Study 2: How a review of James and Susan’s insurance led to $241,000 in claims paid
Consider the case of James* and Susan*, who were contacted by their AIA Financial Wellbeing Planner, Ashley. During the initial call, Ashley learned that Susan had recently recovered from cancer. Ashley highlighted that their Trauma Cover included a cancer benefit, a fact the couple were unaware of. With Ashley’s help, they successfully claimed $109,000.
This positive experience prompted a comprehensive review of their insurance and superannuation. During the presentation of the revised plan, James recalled an old policy they had from 2003. Ashley incorporated this policy into the review, discovering it also included trauma cover. With his guidance, they lodged a second claim, resulting in an additional $132,000 payout. Altogether, they received $241,000 from claims they wouldn’t have known about without Ashley’s professional financial advice.
So, do you know what you’re covered for?
Many policyholders are unaware of the finer details of their life insurance cover. They might not know the specifics of what their policy includes. A financial planner can clarify these details, explaining what you’re covered for and whether your level of insurance is appropriate for your needs. They can also help you at claim time.
Regular consultations with a financial planner can also keep you informed about new products and options that might better suit your evolving needs.
Review your life insurance with AIA Financial Wellbeing
Life insurance is crucial to financial planning, yet it’s often overlooked once the initial policy is purchased. Regularly reviewing your life insurance with the help of a financial planner ensures that your cover remains appropriate for your current circumstances and future goals. By understanding what you’re covered for and making necessary adjustments, you can protect your loved ones and make the most of your investment.
So, ask yourself: do you know what you’re covered for?
AIA Financial Wellbeing offers affordable, reliable and straightforward advice. Your first meeting is complimentary, no strings attached. Take the first small step towards protecting and enhancing your financial wellbeing.
Footnotes
* Names changed for privacy reasons
Disclaimer:
Copyright © 2024 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situations, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
Copyright © 2024 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situations, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
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