Insurance is essential for financial security, but that doesn’t mean you have to overpay for it. Whether it’s life cover, trauma cover, health insurance, or income protection, there are smart ways to reduce your premiums while ensuring you still have the coverage you need. Here are some practical strategies to help you save money on insurance without sacrificing essential protection.
1. Review Your Cover Regularly
Your financial situation changes over time, and so do your insurance needs. If you took out a policy years ago, it may include cover you no longer require. Regularly reviewing your policies with a financial adviser ensures you’re not paying for unnecessary benefits and that your cover still aligns with your life stage.
2. Adjust Your Excess Amount
Most health insurance policies allow you to choose an excess—the amount you pay out-of-pocket before your insurance kicks in. By increasing your excess, you can lower your premiums. However, ensure you have enough savings to cover the excess if you need to make a claim.
3. Bundle Your Policies
Many insurance providers offer discounts when you bundle multiple types of insurance together, such as life and health cover. Consolidating your policies under one provider can reduce overall costs and simplify your insurance management.
4. Consider Level Premiums for Long-Term Savings
Life insurance policies typically offer two types of premiums: stepped and level. Stepped premiums increase as you age, while level premiums remain more stable over time. If you plan to keep your policy for many years, choosing level premiums can result in long-term savings.
5. Take Advantage of Discounts and Wellness Programs
Some insurers offer discounts for maintaining a healthy lifestyle. For example, AIA’s Vitality program provides premium discounts for engaging in health-focused activities like exercise and regular health check-ups. Check with your provider to see if similar options are available.
6. Avoid Overlapping Policies
Having multiple insurance policies can lead to unnecessary costs. For instance, if your employer provides some level of health or income protection insurance, you might not need to purchase the same coverage separately. Review what you already have and adjust accordingly.
7. Quit Smoking and Improve Your Health
Your health status significantly impacts your insurance premiums. Smokers typically pay higher premiums for life and health insurance. If you quit smoking or make other positive health changes, notify your insurer—you could qualify for lower rates.
8. Work with an Insurance Adviser
Navigating insurance options can be overwhelming, and you might not be aware of all the ways to save money. An experienced insurance adviser can help you compare policies, identify cost-saving opportunities, and ensure you have the right cover at the best price.
Final Thoughts
Saving money on insurance doesn’t mean cutting corners on essential coverage. By reviewing your policies, making strategic adjustments, and working with an adviser, you can find ways to reduce your premiums while still protecting yourself and your loved ones.
If you're looking to optimise your insurance cover and save money, NZ Advice Group can help. Contact us today for a personalised review of your insurance needs!