Jen Lewis, Senior Solicitor with the Financial Rights Legal Centre suggests doing a thorough review of your insurance policies, including a careful reading of the fine print. As you move through the life course, your insurance needs will change so you need to regularly review your cover. Look at the Product Disclosure Statement accompanying your policy, check what’s excluded and which natural disasters are covered.
Life insurance is particularly worth evaluating, especially if you no longer have big financial responsibilities like dependent children and mortgages. Jen Lewis says she receives many queries from people who can no longer afford rising life insurance premiums. She suggests asking your insurance company how the premiums will rise over a five year period to help you make the decision. Life Insurance policies are not necessarily for life.
On Home and Contents Insurance, it’s critical to read your insurance contract to see what you are covered for, and what you aren’t. If your computer is stolen for example, is it a “like for like” policy where you might get the monetary value of your old computer, or “new for old” where you might be entitled to a new computer?
It’s important to make sure you are not underinsured should your home be damaged or destroyed in a natural disaster. Jen Lewis advises you go to the Insurance Council of Australia calculator to make sure you are adequately covered for home and contents.
She strongly advises taking a comprehensive video of all your possessions and storing it in the cloud so in the case of theft or disaster you will have a record.
When travel is possible again, you need to see if your travel insurance covers illness due to Covid19.
Finally, Jen suggests shopping around because new customers often get better deals. Then ask if your insurance company will match it.