Having insurance when money is tight
Published on Thu Jun 27 2024 in News
It can be frustrating to manage your money when things cost more. Everything is getting more expensive and it’s tempting to cut back wherever you can. It may be tempting to cancel your insurance as a quick and easy short-term solution. Before you do that, you should think about why you got insurance in the first place. Keeping your cover is important and we can share some tips with you to help manage your premiums.
The importance of Insurance:
Life and Funeral Insurance helps you and your family to keep moving forward even when the unexpected happens. It will quickly pay you or your family a lump sum if you get terminally ill or pass away – helping make sure that they have the financial means to help with everyday costs, funeral costs, outstanding debts, future expenses like school fees or even car repayments.
Managing your insurance premiums
Instead of cancelling your insurance policy, consider these alternatives to make your payments easier.
Flexible payment options:
· Switch to fortnightly or monthly payments: Rather than paying your premiums annually, consider spreading out the cost by paying fortnightly or monthly. This can help make your payments more manageable and easier to fit into your budget. Here's a handy tip: Schedule your payments for right after payday to make sure they get covered.
Review your financial priorities:
· Reevaluate your budget: You might be able to save money in other areas to keep your insurance. This way, you can hold onto the important protection you got the insurance for in the first place.
Adjust your coverage:
· Review and adjust your policy: Talk to your insurance provider about adjusting your coverage to better fit your current financial situation. You may be able to lower your premiums by reducing the cover amount. For example, if your mortgage has reduced, or if you've made lifestyle changes like quitting smoking, you could see a drop in your life insurance costs.
Explore discounts and savings:
· Look for discounts: If you haven't committed to an insurance provider yet, did you know that some insurance providers offer discounts for various reasons, for example, at Momentum Life you can add multiple lives to a Funeral Insurance policy which would allow you to qualify for discounts. If you already have a provider, it's good news to know that maintaining a healthy lifestyle can sometimes help get you lower premiums. Ask your provider if you qualify for any savings.
Why you shouldn't cancel your insurance
Peace of mind
· Insurance gives you peace of mind. Life throws curveballs, and insurance helps you and your family face them without worrying about the costs and financial pressure too.
Responsibility
· Getting insurance is a way to show you care. It might seem easier to skip payments now, but it could cause your family trouble later when they need less to worry about.
The long-term benefits:
· Life Insurance premiums are often lower when you are younger and healthier. Cancelling now might mean higher premiums if you decide to get insured again later, as age and health factors will affect the cost.
Your initial intentions:
· Reflect on why you got life or funeral insurance in the first place. The desire to protect your family's financial future remains relevant, even when money is tight. Consider the long-term benefits and peace of mind that comes with maintaining your insurance.
Times are tough, and managing your money can be hard. However, the desire to protect your family's financial future remains relevant, even when money is tight. Rather than cancelling your insurance, there might be better ways to lower your monthly payments. Keeping your insurance will help you protect your loved ones in the long run.
At Momentum Life, we are committed to helping you find the best solutions to keep your cover intact and your family’s future secure.
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The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.