When working with clients we come across examples of clients with level premium insurance. I had one such client this week and I thought it was worth having a look at the value of level premiums.
This client has held their insurance since 1998.
The cover is income protection cover. They took this cover out at age 30, so a little over 20 years ago as they are now 50 years old.
The cover level selected was based on 75% of their income at the time they took out the policy, since then he has seen a significant lift in salary and the policy having increases through CPI has kept pace with this over the years.
The cover level is now around $17,000 per month with a 13 week stand down and any benefit payable to age 65, so in effect if he was to become unable to work the benefit payable would be over $3 million dollars.
If he were to take this cover out today the price would be $429.52 per month,
With level premium the price my client is paying is $161.45 per month, a savings of over $$268 per month. 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.
So, no matter how you look at if you need an insurance program that will go the distance and with premiums that don’t increase with age you are likely to keep the cover in place longer and increase the probability of making a claim.
We love level premiums and will work hard to ensure you have a program in place to help protect what most matters to you and your family.
Grant Uridge Grant@plus4.co.nz or phone 04 9761099 or cell on 0274488689. Do it now as every month that goes buy is costing you money.
Grant Uridge is a Kiwi with an aversion to exercise. It’s not his natural home and going to the gym or even out for a walk is always done reluctantly.
That said, a weekly bike ride and spasmodic gym sessions do have a time and a place in Grants schedule.
So, having a monitoring device strapped to his wrist is not natural. Used primarily as a watch, the journey has been interesting once a few points were gained. Weekly Air New Zealand air points has been a weekly motivator to get moving.
Not ever likely to be the most motivated physically, the program has made Grant more aware of the need to get out and about.
Already a Fitbit wearer this has helped the move toward small steps to a healthier Grant.