How you spend, save and manage your money is fundamental to your future financial success.
Insurance is a large expenditure for most of us. They’re a necessary evil for most to protect our wealth and assets until we are financially independent.
We recommend setting up a schedule in a spreadsheet with all your insurances so that you can track them. The first thing you could do is assess the amount you pay each year. This on its own could be a significant motivation to renegotiate some of your policies!
Your framework for the spreadsheet could include the following columns:
a) Group (Health, Risk, Property Investment, Home, Car)
b) Type (Level of health cover, Income Protection, Life, Building, Landlord, contents, replacement, roadside assist)
c) Annual cost
d) Provider (Insurance company)
e) Policy number
f) Contact number
g) Who/and or what it covers (name, address, car)
h) Expiry date
i) Deductible (Yes or No)
j) Coverage (level of cover, and excess)
• General Insurance – Review car and home related insurances yearly and compare to other providers. Insurers will usually offer a sweet deal to get you on board, then sting you in the second year.
• Building insurance – Is the replacement value appropriate?
• Landlords insurance – Some companies specialise in this area and have a policy that’s much more robust than many of the other major insurance providers. Plus their premiums can also be more competitive.
• Income Protection – Should you increase your waiting period on your income protection from 30 days to a longer period of time?
• Personal Risk Insurance Indexation – Is it appropriate to permanently cancel indexation which ensures that your premium increase each year is minimised?
• Life and TPD – Check if these insurances are owned by a superfund? If so, are they paid within an environment with a lower tax rate?
Is it time to incorporate a Money Management System into your mortgage strategy to support your Property Planning? Contact us today to book in a free confidential property planning, strategic mortgage broking, money management or property select meeting.