Navigating New Zealand's Rising Cost of Living: 7 Tips for Savings on Insurance

New Zealanders, like many people around the world, are feeling the pinch of a rising cost of living. Managing expenses has become a top priority for many households, and one area that often comes under scrutiny is insurance. To help you navigate this challenging financial landscape, here are seven valuable tips on finding savings in your life, trauma, income, and medical insurance policies.

1. Compare Insurance Providers: Shop Around for Savings

When it comes to insurance, loyalty doesn't always pay off. Take the time to research and compare insurance providers. The New Zealand insurance market is competitive, and different companies may offer better rates and coverage options. By exploring your options, you can often find more cost-effective policies that still provide the coverage you need. Contact us for a market comparison to see how your insurances compares with today’s market and to ensure you are comparing apples with apples.

2. Review Policy Coverage: Tailor Your Insurance

Take a closer look at your insurance policies to ensure they align with your current needs. Are you paying for coverage you no longer require? What other recent changes have occurred? E.g., you may have stopped smoking, your occupation has changed to a less manual one or you’ve been promoted, all of which might qualify you for lower premiums. Adjusting your policies to match your circumstances can lead to substantial savings. For example, if your family situation has changed or you have paid your mortgage off, you might not need the same life insurance coverage as before.

3. Explore Government Subsidies: Tap into Financial Assistance

New Zealand offers various government subsidies and assistance programs to help individuals and families cope with rising living costs. Check if you qualify for any of these programs, as they can provide much-needed relief when it comes to insurance premiums or medical expenses.

4. Bundle Insurance Policies: Consolidate for Savings

Bundling your insurance policies with one provider can often result in significant cost savings. Many insurance companies offer discounts to customers who purchase multiple policies from them. So, if you have life, trauma, income, and medical insurance, consider consolidating them under one provider to enjoy potential discounts.

5. Raise Excesses or Increase Wait Periods Wisely: Balance Savings with Protection

Raising the excess on your medical insurance policies or increasing the wait periods on your income protection, mortgage repayment cover, waiver of premium cover can lower your monthly premiums, but it's essential to strike the right balance. While higher excesses can save you money in the short term, make sure you can comfortably cover the amount if you need to make a claim.

6. Prioritize Health and Safety: Reduce the Need for Claims

While insurance is essential for financial protection, taking proactive steps to prioritize your health and safety can help reduce the need for claims. Invest in a healthy lifestyle by eating well, exercising regularly, and managing stress. Additionally, practice safety precautions to prevent accidents and injuries.

7. Seek Professional Advice: Consult a Financial Expert

The world of insurance can be complex, and finding the right coverage at the right price can be challenging. You must consider the impact of any pre-existing conditions you have especially any that have arisen since taking out your current policy, some might be minor, others more significant. Before making any changes, you must ensure you aren’t excluded for new conditions that you want cover for or you aren’t paying an increased premium for one type of cover to save a few dollars in other areas.

There are many ways you can adjust your current policy to save premiums without giving up coverage of important health conditions that are already covered. Consider seeking personalised advice for your situation from a qualified financial adviser to make sure you get it right first time. We can assess your unique situation and provide tailored guidance on optimizing your insurance portfolio while managing living costs effectively.

In the face of New Zealand's rising cost of living, managing your insurance expenses is crucial for maintaining financial stability. By following these seven tips, you may find savings in your life, trauma, income, and medical insurance policies without compromising your protection. Remember, it's essential to strike a balance between cost-saving measures and adequate coverage to ensure peace of mind for you and your loved ones.