When working with people we come across examples of clients with level premium insurance. I had one such client this week. The results were very interesting and I thought it was worth having a look at the value of level premiums and sharing the level premium numbers.

This client has held their insurance since 1998 – around 20 years now.

The cover is income protection cover and they took this cover out at age 30. A little over 20 years ago as they are now 50 years old.

The cover level selected as the best for the clients unique circumstances was based on 75% of their income at the time they took out the policy. Since then they have seen a significant lift in salary and the CPI based policy increases have kept pace with this over the years.

The cover level is now around $17,000 per month with a 13 week stand down period and any benefit payable to age 65. So in effect, if they were to become unable to work today, then the benefit payable would be over $3 million dollars.

If they were to take this cover out today the price would be $429.52 per month.  However, with level premium the price my client is paying is $161.45 per month, a savings of over $268. Over the next 15 years this will mean a saving of a minimum of $48,000 and very likely many, many thousands of dollars more.

The key message here is, no matter how you look at it, you need an insurance program that will go the distance.  If you have one with premiums that don’t increase with age, you are more likely to keep the cover in place for longer and also increase the probability of making a claim.

We love level premiums and will work hard to ensure you have an insurance program in place to help protect what most matters to you and your family and most importantly, one that is the best for your unique circumstances.

If you wish to have a free no obligation discussion around your insurance program, we are only a phone call or email away.

Grant Uridge, Grant@plus4.co.nz or phone 04 9761099 or cell on 027 4488 689.

Thurl Gibbs, Thurl@plus4.co.nz or phone 04 9761099 or cell on 021 952 088.

PS. Don’t delay as every month that goes buy could be costing you money.