Insurance companies are very competitive with each other, however they all base risk costs on the following basic factors:
Age
Gender
Education
Occupation
Income
When taking these factors into account, it could mean that if you have for example stopped smoking, had a salary increase or attained a
degree, you may be able to increase your insurance cover for the same premium, or even decrease your current insurance premium. You may even
be a lower risk to the insurer you use if you changed your occupation - this could also mean that they could decrease your premium.
Risk cover is basically a form of short term insurance, so it needs to be reviewed regularly.
Other factors that should also be taken into consideration are: Are your benefits, stand alone benefits or accelerated benefits meaning, are they part of your life cover, e.g. will your life cover decrease in the event of a disability or dreaded disease claim.
What are your waiting periods on your risk cover - you can save on income tax by purchasing income disability.
Is there a guaranteed term on your contract - e.g. is your cover guaranteed at a certain cost?
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?
Do you have term or whole of life insurance - if you needed more life cover after the term, would it still be affordable?
Have you reviewed the sum assured, you may need more or less due to a divorce/ birth of a child/ purchase of a house.
Before you cancel your risk cover in order to lower some of your monthly cost or decrease your monthly expenses, it is worth enquiring
from your insurance agent about reviewing your risk cover.
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