One trend that I have seen in my nine years of being a financial advisor is that whenever there is a downturn in economic conditions, and the cost of living becomes too high, clients tend to cancel their insurance policies or go hunting for new policies which they are told offer better different benefits at lower premiums….
This is a mistake.
Frequently Changing your Long-Term Policies Exposes You to Greater Risk
Constantly changing your long-term insurance policies (life cover, disability and critical illness cover) exposes you and your beneficiaries to additional risk, and to possibly losing your cover. When your policy is accepted, it is on the basis that there are no pre-existing conditions and should ANYTHING happen to you, you are covered (based on the terms of your policy).
The longer that the same policy is active and has been in force, the easier it is for an insurer, such as Liberty, to pay the claim. If a policy is younger than 3 years, there is additional documentation that the insurer requires in order to process the claim.
So frequently changing between different providers could leave your family with a lot more admin.
When a Pre-Existing Condition Becomes a Policy Exclusion.
If your health changes while you are changing policies, you could also be left entirely without cover, as any serious pre-existing conditions will not be covered. These include heart disease, cancer and the various perils that originally motivated you to take out the policy in the first place.
When we put your financial planning in place there is a commitment from my side to ensure that in any eventuality you, and your family, will be fine. Should anything happen to you, I will personally sit with your loved ones and complete the claim forms and ensure that your wishes are carried out, but in order to do this, we need to make sure your policies are in place as they should be.
In the last 9 years, I have never had a claim repudiated or cancelled when submitted, and this is my guarantee to you if you maintain your policies.
If you are struggling to make your monthly premium payments, or would like some more advice on how to better structure your long-term insurance policies, let me know and I will arrange a consultation.