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Structuring your premiums to suit your needs

Monday, November 13, 2017

When you take out life insurance, it’s usually because you want to protect the lifestyle you’ve worked hard to create, and it’s important that you have the ability to maintain your cover for as long as you need it.

Why do premiums increase over time?

When insurers set premiums they balance price against risk – how likely you are to make a claim.

It works the same as your car insurance – if your car is more likely to be stolen, or it’s more expensive to replace, your premiums will be a bit higher.

With life and disability insurance, insurers look at factors like your income, occupation and lifestyle. As you age, it becomes more likely that you’ll need to make a claim, so premiums tend to go up over time.

But for many, the need for insurance will also decrease as you age – for example, as you pay down mortgage debt or your children become independent – so it’s possible for you to adjust your cover to keep your premiums affordable.

You can choose how to structure your premiums

Most of our customers keep insurance cover in place over the long term, in case anything unexpected happens and they need help to do things like pay their mortgage or look after young children.

It’s important that you have cover that you can keep for as long as you need it, so insurers generally offer two different premium structures.

Level premiums

Level premiums lock your premium payments in for a long term, so they don’t increase with age unless you change your cover.

Stepped premiums

Stepped premiums start lower, but increase each year based on your age.

How do you know which structure is right for you?

Both types of premium structure have their benefits.

For example, if you’re not planning to keep your insurance for a long period or your insurance needs might reduce over time, stepped premiums could be a better option.

But if you want to keep your insurance for a long time, or you’d struggle to cope with increasing premiums, level premiums might be better to cover these long term needs.

Often, the best solution is a combination of both types of premium.

Please get in touch if you need some help to choose a premium structure that’s right for you.

(Credit: Original content courtesy of Asteron Life). 

 

Opting for non-underwritten quick and easy life insurance could see you end up paying more for weaker cover!

Thursday, November 10, 2016

Ask Consulting, take the time to understand your individual situation and help you choose the best product to protect your family!

An insurance expert has issued a stark warning, you’ll pay a hefty price if you opt for quick and easy ‘no questions asked’ life insurance.

The independent insurance product research firm, Quality Product Research, has found life insurance products that don’t require you to answer a raft of questions about your health, lifestyle and job before signing up, could be nearly 70% more expensive than fully underwritten products. Read the full article on interest.co.nz

Stepped costs get steep

Thursday, November 10, 2016

First it was $38. Then it was $97. You can see where this is going. But I couldn’t, exactly.

There was no way of telling how much my life, disability and trauma insurance premiums would rise in the years to come. They obviously weren’t staying flat! And since my previous experience with life insurance had “level” payments instead of these “stepped” ones that advance with age, I could not imagine how high these were headed.

Read the full article on Stuff here

 

Merry Christmas from Ask Consulting

Tuesday, December 17, 2013

Just a quick post to let you know how much we appreciate your business and wish you a very Merry Christmas and a Happy New Year.

Our office will be officially closed from Monday 23rd December, reopening on Monday 13th January. We will however be available throughout this time by email or cell phone. Early in the New Year is always a great time to review your insurances. If you wish to do so don't hesitate to contact me on 027 440 2504 and we can lock in a coffee!


Enjoy the holidays and keep safe!

Nick O'Neill-Hay

How the healthiest countries stay healthy?

Wednesday, September 11, 2013

Secrets to staying healthy

The world's fattest country, if measured by Body Mass Index (BMI) is Kuwait, according to the Mail Online. With an average of 29.5 they are well above what's considered healthy. And, shockingly, New Zealand sits at seventh on the 'fattest country list'.

"A healthy BMI for an adult is between 18.5 and 24.9 and it's calculated by dividing your weight by your height squared (BMI = weight / (height) x (height))," says Clinical Dietitian Dr Naras Lapsys of The Body Doctor.

So what lifestyle lessons can we learn from some of our healthier cousin countries? Read more here.

The need for Health Insurance?

Wednesday, August 07, 2013

Recent research findings.

Research by the Ministry of Health confirms that Cancer is still the leading cause of death in New Zealand accounting for 29.4% of all deaths. Getting the treatment you require within a reasonable timeframe can be imperative in working towards a positive outcome. Since the human life span has continued to lengthen since the early nineteenth century, more and more people are living to ages at which cells lose the ability to heal from damage and become cancerous.

While Health Insurance cannot deliver good health, it can provide you with the support you need in terms of medical specialists and the latest drugs and treatments. If you would like to find out more about different Health Insurance options get in touch with us here

Income Protection is a MUST HAVE, not a NICE TO HAVE!

Tuesday, June 04, 2013
The Financial Services Council recently commissioned Massey University and Horizon Research to undertake research about New Zealanders being under-insured. The research examined what would happen if one of the income producing members of a family couldn’t work due to an illness or injury? The key findings included:
  • A couple with or without children would receive $341 per week on the sickness benefit, but the average household needs a minimum of $652 per week just to cover existing outgoings
  • 55% of households would be unable to pay all of their expenses and maintain their lifestyle 4 weeks after sick leave and annual leave ran out
  • Each week 288 households in New Zealand fall into this situation
If you don't have income protection cover these are some of the harsh realities which your family could face. To find out more about Income Protection cover get in touch with us here.

Finance Minister: Budget will help vulnerable Kiwis

Monday, June 03, 2013
Finance Minister Bill English says the Budget 2013 will help the most vulnerable people in society "who the Government has served very poorly in the past".

Mr English said the Budget revealed earlier this month, which focused on housing affordability and a return to surplus, would be an important step in the efforts to close the gap between rich and poor. Read more here.

Special Events Benefit Cover

Monday, April 08, 2013

A quick overview of some possible benefits of your policy which you may not be aware of!

Did you know that you may be able to increase your policy benefit by up to 50% of the original sum insured if one of the following events occur.

  • You marry or divorce
  • Your partner or spouse dies
  • You give birth to a child
  • You increase your mortgage
  • Your annual salary increases by at least $ 5000 per annum.

If any of these events have happened recently it often means we can increase your cover without having to complete a new proposal form and have it medically underwritten. If you would like to enquire about some extra cover contact us here.

Supply Shortage Keep Prices High

Friday, April 05, 2013
The number of new listings in the New Zealand real estate markets continues to fall, especially in the main urban centres. In March, new listings were down 3% on February and 4% lower on the same month a year ago. The decrease in new listings was particularly apparent in the major centres, with Wellington and Canterbury experiencing falls of 9.9% and 8.6% respectively from the same time last year, with Auckland’s figure falling by 4.6%. Read the full article on interest.co.nz here.

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