Premiums

Do you know what a premium is or how it will work for you? A lot of money changes hands when it comes to insurance, so it is important to know all you can about the financial terms you come across. If you know what premiums are and how to handle them you will be placing yourself in a great position. Take your time and really get a hold of your responsibility with life insurance. Your premium should be something you truly care about.

What is a Premium?

When you get your life insurance policy, you will be responsible for a payment each month. This monthly payment is called the premium. You must continue to pay this every month while you still maintain that life insurance coverage. Your premium will be based on a number of different factors. Each insurance company has their own special system, but a main determining factor will be your policy’s face value. As long as you continue to pay the premium you will remain in good standing with the life insurance company. Read through your policy and have a clear understanding of what your premium will be.

What Happens if You Don’t Pay?

If you do not pay your premium then you will lose your policy. You will have a grace period of 30-31 days in order to make your late payment. If you do not pay the premium by then your policy will lapse. If you have built up cash value then you will have some help. The cash value will be used to continue the monthly payments until that runs out. If you want to keep your policy and your cash value, then you need to make sure you pay each and every month. There are some people though who cannot pay each month because it is too expensive.

Tips on Lowering Your Premium

The best thing you can do is lower your risk to the insurance company. If you are less of a risk, you will be able to get better rates and coverage. If you do not pay each month then you become a risk. Remain diligent on paying your premiums as best you can, and if you have any trouble make sure your life insurance agent knows about it right away. Another way you can lower your risk is by becoming healthier! Improve your health and show the insurance company that you are going to live for a long time. This is the best thing you can do and a lot of times it results in better premiums. You have the power to help yourself, so take advantage of it!

When you take out a new policy with Insurance Kings we'll give you the first month's cover for free on acceptance PLUS a Gift Voucher to the value of $30 to spend at any Coles supermarket.

Term Life Insurance
Helps ensure your loved ones are cared for and financially secure.

Trauma Insurance
Look after your family if you suffer a major illness or trauma event.

Income Protection
Helps replace your income when unable to work due to an illness.

Select Term Insurance
Choose a level of cover for a set period and enjoy full protection.

Funeral Plan Insurance
Provide your family with financial assistance for funeral expenses.

Troy Rabaud & Nathan Lewis are authorised representatives of AAA Financial Intelligence Pty Ltd ABN 23 093 616 445, Australian Financial Services Licence 312478

General Advice: Any advice on this website is general advice only. We have not taken into account any readers’ personal objectives, needs or financial circumstances when preparing this information. You should therefore consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial circumstances and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that product.

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