Sunday, November 29, 2015

Tips to save money on your insurance. #2

2. Consider your waiting period and/or excess.

Waiting Period: Increasing the waiting period on your insurance cover is one way to lower the cost of your insurance. The waiting period is the amount of time you must wait after fulfilling the conditions of your insurance before being eligible for the claim payment. For instance, with a 6 week wait on an income protection policy, you will have to wait 6 weeks after stopping work to become eligible for your claim payments.  The higher your waiting period, the more discounts you will get on your insurance premiums. Therefore, if you have sufficient savings to cover the wait period if something unfortunate does happen, a higher waiting period can be a great idea for savings in the long term.

Excess: For certain types of insurance like fire and general or medical insurance, you can select a higher excess to achieve the same savings. An excess is the amount of costs or damages that you must cover on your own before your insurance kicks in to cover the rest. A $1000 medical insurance excess means that you will pay the first $1,000 of any medical procedure you need and your insurance will cover the rest. We recommend taking a balanced approach between saving on premiums and having an affordable excess if something happens, but if you're taking a long term approach, increasing your excess can be a good move.

Friday, November 20, 2015

Tips to save money on your insurance. #1

The experienced insurance team at Spratt Financial Services has a number of tips to help you save money on your insurance, whether you have existing policies or you're looking to get insured:

1. Make sure your sum assured is not unnecessarily high.

Selecting the amount of insurance you need is one of the most crucial areas that people need to spend more time considering. It can often be too tempting to just pick a round figure that you assume is correct for your needs and go with it. When we give advice to new clients, we take the time in helping them go through their debts, their needs and what exactly they need provided for. Let's say you discover that you need $150,000 of life cover to adequately cover your debts. By doing this instead of blindly selecting say $200,000, you've instantly saved a considerable amount on premiums. Picking the amount that you need and then revising it as necessary as changes in your life occur is one of the best ways to be sure you're not spending too much on your insurance.