Oh dear,

It sounds like this is quite stressful for you both. Insurances are one of those things that we generally don’t enjoy paying for... until we need them. Then we are very grateful to have them in place to protect our toosh from whatever BS life throws at us.

A few things to know about insurances:

* We have different types of insurances to protect us from different financial risks (death, long term disablement, inability to work...etc). It's important to think about your life stage and what you need (Evergreen Money Club Members, we have our deep dive on this in our library for you to watch, plus a Bonus Masterclass launching this month with Dr Emily Amos who gets raw and real about needing to use her Income Protection policy). Consider why you took them out and if they are still right and relevant for you. I.e. If you took them out because you had a big mortgage or little kids but now the situation has changed, then some may be redundant, others may be too high for your need. Or you may find you are not covered in the right places (yes, I am looking at you special Evergreen member who got badly injured last month only to find out they didn’t have Income Protection, as they thought 👀).

* You are right, generally, as you get older the premiums go up (sadly, it's based on claims statistics, so it’s normally when you are likely to claim on them). But from what you are telling me, you are putting money into the hypothetical long-term savings bucket, but the insurance hole at the bottom is letting more out than you are putting in – meaning you need to find the right balance for your situation between having adequate retirement savings and not being under insured. The dance is an awkward one for many, but there generally is a good sweetspot to be found.

* Pro Tip: Before you look at cancelling or even reducing any of your cover, both of you go and get full medicals (including blood tests!). I know it sounds extreme, but you would be so shocked at the amount of stories I have heard of people reducing or cancelling their cover only to find out a short time later that they actually had something they could have claimed on. Please don’t let that be you!

* Once you have done your medical – and assuming all is clear, request a meeting with your Financial Adviser. Ask them exactly what insurance you have. What is the strategy? Does this match your current needs? What options do you have to stop the Super pool from being drained year on year and what would that mean in terms of long-term impact? Are your beneficiaries and contact details correct? Do they match the Super defined beneficiary list? Is it binding or non-binding? Also, ask your Adviser how they get paid (it's important they are honest and transparent about any fees or commissions). If they don’t feel like they have your back, maybe it's time to find a new one (or if you want to DIY you can always join one of our education programs).

Ultimately, Superannuation was designed to look after your financial needs in retirement. It’s really great that you are looking now at how to make sure you are adequately protected but also have as much as possible for your long term income needs... to avoid retiring broke!

Jess

Have a money dilemma?

Money dilemmas can be a nightmare! They can leave you up all night ruminating about what to do, have you feeling alone and isolated or just plain ol' stuck. So, we are here to help. I am going to tackle one a week and give you my unbiased, no BS general thoughts on how to tackle your conundrum. We would love for you to send yours (or someone you know) in. 

Obvs all of this is general advice only... especially important to note any and all of the comments above do not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.