Thinking of Cancelling Your Insurance? Get Advice First.

If you’re reviewing your outgoings, there are some important considerations when it comes to Insurance, says Grant Willis, Head of Asteron Life.

With the cost of living rising, you may be reviewing all your regular outgoings. When it comes to insurance, you might be wondering how much do you really need. Can you cancel or reduce your cover, and what insurances are ‘nice to have’?

This is a really difficult topic for the average Kiwi to navigate. On one hand, life insurance might be starting to look like a luxury you don’t need. But if you’ve had the cover in place for years, it can be difficult to give up the ‘security blanket’ of your insurance – or you might feel like you’re placing yourself or your family’s financial future at risk.

Insurance is complex, so how can you keep what you need and eliminate anything extra? The best way is to talk to an adviser, for three reasons:

1. An adviser can identify if cancelling could cause problems

Cancelling a life insurance policy can cause surprising issues down the track – for example, if you need to take out cover again, and you’ve had medical issues in the meantime, you might be facing higher premiums and more limited options. An adviser can explain how cancelling your insurance might affect you in future.

2. They can future-proof your strategy

Retiring, paying down debt or kids leaving home should all trigger a life insurance review – do you still need the same cover? An independent financial adviser can talk to you about your plans, assess your current needs, and plot out a plan for the future. For example, if your kids have left home you might feel you don’t need much life cover – but if you’ve still got mortgage or business debt you might feel you’re better off keeping your existing cover in place. Bouncing your plans off an adviser can help you feel confident that whatever decision you’re making is the right one now, and in the foreseeable future.

3. An adviser can help you save money

If you’re reviewing your insurance in the hopes of saving money, an adviser might be able to find ways to cut your premiums without cancelling your cover. They can talk to you about reducing it, increasing wait times or restructuring your policies. Cancelling your life insurance can be a big decision in your life and sometimes signals an exciting milestone. But whatever your circumstances, it’s always great to get personalised help. Talk to an insurance adviser for advice that’s tailored precisely to your situation.

An adviser will be on your side

Asteron Life won the Life Insurance Company of the Year award in 2021, and we work with some of the best advisers in the industry. If you don’t have an insurance adviser yet, we can help you find one in your area. There’s no direct cost to working with an adviser, and they can support you in choosing insurance and if you need to make a claim.

To find an adviser near you, go to: www.asteronlife.co.nz