Why do my insurance premiums keep going up? What can I do about it? The premiums increase for 2 reasons … 1. As you get a year older, you are deemed to be a greater risk to the insurer and more likely to claim. The premiums are the price you pay to cover the risk – therefore if the risk increases, so too does the premium. The level of risk increases at a greater rate as we get into our mid-forties and therefore the premiums increase at a greater rate from your mid-forties than they did when you were in your thirties. The good news is – you got to have another birthday! Below is Dr. Seuss’s take on birthdays – it’s all good! 2. Most insurance benefits such as trauma cover, life insurance or income protection cover are linked to inflation – this means if inflation is running at 3% then the benefit will increase by 3% on the policies anniversary. If for example, you set the policy up with a benefit of $500,000 and inflation was 3%, then the benefit will increase to $515,000. The good news here is that the benefit retains the same purchasing power – your family can continue with their current standard of living. What can I do about it … ? Firstly, the level of cover you require needs to be continually assessed. An ideal time is when you meet with your adviser to review your covers. If the mortgage has decreased, your KiwiSaver balances have grown and the kids have left home, … Continue reading “Why, you might be a WASN’T!”