All insurance companies compete with one another and they base their risk costs on the following factors:

1. Age
2. Sex
3. Education
4. Income
5. Occupation
6. Smoker Status

So in other words, if you have attained your degree, had a salary increase or become a non–smoker your premium may very well decrease or you could increase your cover for the same premium.

What if you changed your occupation - you may be a lower risk to the insurance company and therefore they will offer you a lower cost.

If you have a loading on your contract, maybe due to previous high blood pressure or another temporary illness, it might be time for a review and possibly a cancellation of the loading which will in turn decrease your monthly cost.

Risk cover is pretty much like short term insurance, it needs to be reviewed.

Other factors to take into consideration are:

1. Have you reviewed the sum assured, you may need more or less due to a divorce/ birth of a child/ purchase of a house?
2. Are your benefits, stand alone benefits or accelerated benefits (are they part of your life cover, e.g. will your life cover decrease in the event of a disability or dreaded disease claim?
3. Do you have term or whole of life insurance – if you needed more life cover after the term, would it be affordable?
4. What are your waiting periods on your risk cover – do you know that you can save on income tax by purchasing income disability?
5. What are your annual increases, do they increase with age; are they compulsory or automatic increases or does the insurance company increase on a discretionary basis?
6. Is there a guarantee term on your contract – e.g. is your cover guaranteed at a certain cost?

It is worth reviewing your cover so before your cancel your risk cover to relieve some of your monthly cost or even to possibly decrease your monthly expenditure, why not enquire about possibly reviewing your risk cover.

I offer free financial consultations and workshops and will analyze your portfolio and offer recommendations if alternatives are in your best interest.  There is no charge for these enquiries.

Please feel free to contact me and let’s see if we can possibly save some money and help the monthly financial burden.

Looking forward to hearing from you and the wonderful sunshine that’s about to come!!

Shirley Passanah
Registered Financial Planner
083 443 9000
shirley.passanah@liblink.co.za