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Many Australians leave their policies to be renewed automatically
Call it loyalty or a set and forget approach that has been undertaken by many Australians, but many Aussies chose not to renew their life insurance policies. Recent research by Roy Morgan revealed that 77.4% of general insurance policies were renewed with the same company without approaching other companies.
According to the data, this is down by 2.7% when compared to five years ago. This may seem like nothing to worry about, but Aussies could be potential passing up the opportunity to save hundreds of dollars when it comes to renewing their policy with an insurer who will offer them a better rate.
More reviewing, less switching
Reviewing your life insurance policy on a constant basis is essential to finding an adequate cover that caters to your needs. In general, you need to review your life insurance whenever life's major events occur such as a change in your financial circumstances, getting married, getting a job, and having a baby to list a few.
This is to ensure that you and your dependents are taken care of financially in the event where you fall ill, sustain an injury, or pass on. It can also let you get access to the same benefits but at a lower rate that can help you save.
The research by Roy Morgan revealed that 1 in 5 Australians (9.8 million) review their general insurance policies over the past 12 months, which was an increase of 17.7% from 2013. However, there was less switching when it came to approaching another company with 15.1% of 19.8% of people who review their policy approaching other companies.
Looking around for a tailor-made fit
Australians are taking a more proactive role when it comes to shopping around for a policy that comes with the best possible rate, but they still get cold feet when it comes to switching. It is vital that you get an insurer that understands your needs and offers you a range of options that will be best suited to your needs.
Looking beyond the premium rate that is charged is also important. Keep in mind that just because a policy is expensive you will be getting the best deal. The same goes for cheap policies. Always check the features and exclusions that come with it.
This tends to be outlined in the product disclosure statement (PDS) that needs to be read carefully before signing your name on the dotted line. The take home is to always compare your way to a policy that will offer you the best value for your money.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
