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What to expect at the annual renewal of your life insurance

Every year, just before the anniversary of your policy, you’ll get a letter from your life insurer. It will let you know that your policy will be renewed for another year. It will also state the amount of cover you have, which is handy for reference.


Why do premiums increase?


When you’re reading the annual renewal letter, you might notice that your premium has increased. Many New Zealanders with life insurance have ‘age-rated’ cover, which means the cost increases every year. This happens because getting older comes with a higher risk of getting sick, becoming disabled or dying *. Your insurer may also use other things like their own or industry wide data to determine the likelihood of making claims. This analysis impacts your price increase.


Another reason for a premium increase is the consumer price index (CPI), which measures the cost of living. If you chose the CPI option, the amount you are covered for will increase to help keep up with the cost of living. This extra bit of cover comes with additional cost.


If you’re concerned about the cost of your cover, you can talk to us about your options.


Don’t wait for your annual renewal to adjust your cover


It’s worth checking-in with us to see if your cover is up to date - especially if anything’s changed in your life or business recently. It’s good practice to do this once a year to ensure you have the right cover in place for you, whether that be increasing or decreasing the amount you’re insured for.



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