This happens more often than you might think.

I recently reviewed the insurance polices held by a couple who had a change in their financial circumstances. I noticed they were paying income protection premiums for a hypothetical income that was much higher than they had ever actually earned.

If they ever tried to claim on this policy, they would not receive such a high payout. The insurers would have asked to see their real incomes and then base the payout on those figures.

Why pay thousands of dollars over a decade on insurance premiums to cover non-existent income? I suspect poor advice at the time the policy was sold. I’m not naming names, but the policy in question was sold by a bank.

A good adviser will want to ensure you get value from your premiums, and that means recommending a policy that will actually pay out. So think hard before you sign on the dotted line of an insurance policy that is casually placed in front of you. And don’t be afraid to ask for regular reviews of your insurance.

Don’t put it off. Book an insurance review now.

I’m always happy to review your insurance policies at no charge Make an appointment