Are you thinking about whether you can afford your insurance premiums?
You're in control, here's some things you can consider
We all know that life insurance can make a world of difference at a time when you and your family need it most.
Insurance may seem like one of those expenses that are not important until you need it. Depending on your policy, most insurance premiums increase every year based on your age and any indexation increase on your benefit amount.
If you’re looking to save money, your insurance policy can adapt to your needs over time. There are ways you could reduce your premium costs while still staying covered.
Before making any changes, you should check your policy carefully or speak with your financial adviser. If you decide to add some cover benefits back after they have been removed, this may require underwriting which could increase your premiums, or may not be allowed at all.
AMP Life has other options to help if you’re struggling to pay your premiums due to financial hardship. Find out more here.
Paul is a 45-year-old single father with two children living at home, aged 12 and 15. He is working full-time on a salary of $100,000 a year and is paying $95 a month for his income protection insurance cover.
A long-term smoker who has been trying to quit for some time, Paul finally succeeds in quitting. After 12 months of not smoking, he asks AMP Life to have his smoking status reassessed, and as a result his premiums for life insurance cover are reduced to $73 per month. Paul also decides to reduce his benefit period until his children are out of school, in order to help him stay on top of his premiums.
When Paul and his family move house, his finances are squeezed even tighter. To make it easier to keep up with his premium payments, Paul decides to change his waiting period from 30 days to 90 days. This gives Paul the time he needs to cover his extra costs and get himself into a better financial position and reduces his monthly premium further to $46. That’s a total saving of $49 per month for Paul.
Renee is a 41-year-old high school teacher with 10 year old twins who attend a private school. Renee earns $94,000 a year and is paying $230 a month for her income protection insurance cover with a benefit amount of $5,900 per month until the age of 65.
When Renee’s husband is made redundant after only 3 years at his employer, they need to reassess their finances so that they can continue to pay their mortgage and their daughters’ school fees. They contact AMP Life and speak to them about reducing their income protection benefit period from up to age 65 to 5 years. As a result, their monthly premium is reduced to $149 – saving them $81 per month. Updating their insurance cover based on their needs allowed them to still remain covered whilst taking some pressure off their financial situation.
Renee is aware that she will need to be underwritten again if she wants to reinstate her insurance to its previous levels.
Please note these examples are illustrative only and are not an estimate of the investment returns you will receive or fees and costs you will incur. These examples are based on the following assumptions (a) The cover amount remains the same through-out the period and the policy is not cancelled or suspended.; (b) No waiting period applies to the policy; (c) All figures are gross of tax. No allowance is made for tax circumstances, the taxation and Medicare levies on insurance benefits, or social security benefits; (d) The example does not take into account any fees and costs associated with insurance.
AMP Life Limited ABN 84 079 300 379, AFSL No. 233671 (AMP Life), has proudly served customers in Australia since 1849. AMP Limited ABN 49 079 354 519 (AMP Limited) has sold AMP Life to the Resolution Life group whilst retaining a minority economic interest. AMP Limited has no day-to-day involvement in the management of AMP Life whose products and services are not affiliated with or guaranteed by AMP Limited. AMP Limited is not liable for products issued by AMP Life or any statements or representations made in the PDS for those products. “AMP”, “AMP Life” and any other AMP trademarks are used by AMP Life under licence from AMP Limited.
Any advice and information on this website is general in nature and is provided by AMP Life, which is part of the Resolution Life group. The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on the advice, you should consider the appropriateness of the advice, having regard to those matters as well as the relevant product disclosure statement (PDS), available from AMP Life at amplife.com.au or by calling 133 731, before making a decision about the product. Consider speaking to a financial adviser if you have any concerns.
AMP Elevate insurance is jointly issued by Equity Trustees Superannuation Limited ABN 50 055 641 757, AFSL No. 229757 RSE Licence L0001458 (ETSL) as trustee for the National Mutual Retirement Fund ABN 76 746 741 299 and AMP Life.
If you decide to purchase or vary a financial product, AMP Life and/or other companies within the Resolution Life group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium they pay or the value of their investments. You can ask us for more details.