A health crisis can occur at any time of life, but the risks obviously increase as we age. Unfortunately, due to this increased risk of illness or injury the cost of insurance for those over 50 can be high. As a result, people in this age group are tempted to drop their insurance cover altogether just when the need is at its greatest.
If age 50 is looming, or recently passed by, it’s even more important to continue to protect both your income-earning ability and the financial security of any dependents. Here are some solutions to consider:
- Review your level of insurance. As your investments and superannuation increase, you may be able to reduce your cover and still provide for your beneficiaries.
- Life and disability insurance can be arranged through most superannuation funds. Premiums can be lower and are paid from the superannuation balance thereby reducing strain on the household budget.
- For income protection insurance, if you have accrued adequate annual or sick leave, you might want to increase the waiting period which may reduce your premiums. Depending on circumstances, this may allow you to retain an important benefit at a more affordable price.
- Pay in advance. Prepaying 12 months’ worth of income protection policy premiums before 30 June may allow you to bring forward a tax deduction for next year into the current year. This can potentially reduce your taxable income and the tax you pay this financial year.
Everyone is different so there might be other solutions to suit your circumstances that are not mentioned here. If you’re not sure what to do, always talk to a licensed financial adviser before you make any adjustments to your insurance cover. We can help you achieve the right balance for your needs.
Disclosure Statement: Ann Little Insurance Brokers is an Authorised Representative of Synchronised Business Services Pty Ltd, ABN 33 007 207 650 trading as Synchron – AFS Licence 243313. General Advice Warning: This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider you financial situation and needs before making any decisions based on this information.