Brian Magellan - Swainwoodham Group" data-"http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-50x50.jpg 50w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-66x66.jpg 66w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-100x100.jpg 100w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-120x120.jpg 120w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-200x200.jpg 200w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group-230x230.jpg 230w, http://www.elite6.co.nz/wp-content/uploads/2016/10/Brian-Magellan-Swainwoodham-Group.jpg 240w" data-sizes="auto" data-orig-sizes="(max-width: 240px) 100vw, 240px" />Insurance premiums are lower when you’re young and healthy, and higher when you’re older and more likely to be diagnosed with an illness or disease. This is the case for 95+% of people with insurance – and unfortunately it often means that many of these people will need to make the tough decision to cancel their insurance in their older years – which is exactly when they will need their cover!

Why should you care?

Long term affordability of insurance is an important topic that is usually not addressed until you start feeling the financial pinch of higher premiums in older age. And most people, when faced with significantly increasing premiums and low income, will decide to cancel their cover, leaving themselves and their family exposed to the effects of disease, injury and illness at a time in their life when they are more likely to make a claim!

The typical premium growth trend for 95+% of people with insurance, who have Stepped (or Yearly Renewable Term) premiums. You pay less when you’re young, and much more when you’re older.

The ages when men and women typically claim on their critical illness (or trauma) cover, which protects you for illnesses like cancer, heart attack and stroke (these 3 illnesses represent 80% of all trauma claims).

What similarities do you notice?

Clearly, you need to be able to afford your insurance from your late thirties onwards in order to be protected from these critical illnesses. But for many people their expenditures are highest from this point in their life, with a mortgage, kids and living expenses all reducing the amount of money they have to spend on essential insurances.

Unfortunately, the number 1 reason why people reduce or cancel their insurance is due to affordability issues.

How much will your insurance premiums increase by?

We can tell you that between the ages of 40 and 60, your insurance premiums will increase by anywhere between 450% and 950% – this means that a man with $100,000 Trauma cover paying about $40 per month at age 40 will end up paying over $300 per month at age 60!

  • Does that sound a bit scary to you?

  • Do you think you’ll have trouble affording your insurance in later life?

  • Do you want to lose the security of your insurance?

So what can you do to avoid this situation?

Fortunately, we can help you significantly reduce the total amount of premiums that you pay over the same period of time, without reducing your cover!

We can do this by restructuring your premium to what are called ‘Level’ premiums. This type of premium structure remains constant over a period of time that you specify, and ensures that you don’t experience the large increase in premiums that people on Stepped premiums experience.

And don’t worry – your level of cover also stays the same throughout that period as well.

You’ll therefore have certainty of knowing what your premium will be, and know that you can afford your insurance into older age.

Why haven’t you heard of this before?

Unfortunately, many advisers in New Zealand aren’t aware of all the potential solutions available to their clients, and aren’t as proactive in identifying ways to help their clients save money.

If you want to know more, please contact me for a confidential discussion. We can show you how you too can afford your insurance into older age.