Cheapest isn't always the Cheapest

Buying insurance isn't about finding the best deal. You need to look at the total cost over the period you are going to have the insurance.

New research suggests that while new life risk policies with front loaded discounts can increase affordability in first-year premiums, they can be more costly to consumers over the medium-to-long term, especially for life, TPD and trauma.

The research, commissioned by PPS Mutual and undertaken by actuarial consultants Rice Warner, reviews front loaded discounts prevalent in Australia’s retail life insurance market and the longer term impacts of the practice.

It shows that front loaded discount policies with stepped premiums have on average lower premiums in the first policy year, but higher premiums from the third policy year onwards (click here for the full report).

So before you take out a new policy make sure you look at the long term cost.

If you would like me to review your current insurances please get in touch with me today, Wayne 0412 49 42 43 or visit my website www.insuranceforliving.com.au to book in a free consult.