Over the years, industry standards have improved due to competitive climate in the insurance industry. Scope of coverage consistently redefined and prices have gone down from time to time. Holding on to old policies, could potentially mean a few things.
1) Overpaying
Yes. As prices has gone down, do not be surprised that some older rates are leveled and newer competitive rates have emerged. You could potentially get cheaper rate while you are at age 32 compared when you are 29.
2)Under-insured
Some clients have decided to take up low cost , low coverage term policies as a temporary solution to tide over their initial financial challenges. Over the years of affluence, they probably neglect the fact that they do not review or revisit their insurance needs. The shock of having realising your coverage has lapsed due to non payment, non renewable term or simply forgetting what they have are some examples of mistakes people commit.
3)Over-insured
While this group of consumers are rare, i do came across some with high insurance coverages from multiple companies. Typical of term insurances mistakes as they are marketed at low cost and people could just sign up and forget about it. Personal accident, hospital cash plans do fall into this category as well. Consolidate your portfolio for ease of mirco management and cost effective measures.
4)Insurability
No one ask you to cancel your policies prior to taking up newer policies in the first place. The rule of thumb is to get your new policies in places after the waiting period is over before dropping the old policies. This way you can be ensured of continuous coverage despite changing policies to benefit you more.
5)Restructure your policies
As definitions has improved, do exercise the theory of restructuring your portfolio from time to time. This gives you the edge of always getting the best buck value of coverage required. An example would be getting an early stage critical illness coverage to enhance your scope of coverage in a existing critical illness term plan. Alternatively, always look out for existing new launches from insurers and ask for their new definitions, features and of course, pricing.
6)Maintain a spreadsheet
As term insurances are simple and no brainer, keep a checklist or spreadsheet to remind yourself of important details like premiums, due date, coverage scope and sum assured. This will prove valuable when you practice restructuring from time to time.
1) Overpaying
Yes. As prices has gone down, do not be surprised that some older rates are leveled and newer competitive rates have emerged. You could potentially get cheaper rate while you are at age 32 compared when you are 29.
2)Under-insured
Some clients have decided to take up low cost , low coverage term policies as a temporary solution to tide over their initial financial challenges. Over the years of affluence, they probably neglect the fact that they do not review or revisit their insurance needs. The shock of having realising your coverage has lapsed due to non payment, non renewable term or simply forgetting what they have are some examples of mistakes people commit.
3)Over-insured
While this group of consumers are rare, i do came across some with high insurance coverages from multiple companies. Typical of term insurances mistakes as they are marketed at low cost and people could just sign up and forget about it. Personal accident, hospital cash plans do fall into this category as well. Consolidate your portfolio for ease of mirco management and cost effective measures.
4)Insurability
No one ask you to cancel your policies prior to taking up newer policies in the first place. The rule of thumb is to get your new policies in places after the waiting period is over before dropping the old policies. This way you can be ensured of continuous coverage despite changing policies to benefit you more.
5)Restructure your policies
As definitions has improved, do exercise the theory of restructuring your portfolio from time to time. This gives you the edge of always getting the best buck value of coverage required. An example would be getting an early stage critical illness coverage to enhance your scope of coverage in a existing critical illness term plan. Alternatively, always look out for existing new launches from insurers and ask for their new definitions, features and of course, pricing.
6)Maintain a spreadsheet
As term insurances are simple and no brainer, keep a checklist or spreadsheet to remind yourself of important details like premiums, due date, coverage scope and sum assured. This will prove valuable when you practice restructuring from time to time.
