6 tips to having the right level of insurance cover

Our industry insights have given us tips on how to make sure your insurance cover is right for you. 

When life is busy it can be easy to overlook the important things and take your own wellbeing for granted. But it pays to stop and consider how much your loved ones depend on you. If something were to happen to you, money is the last thing you or your family would want to worry about.

If your income stops, can insurance help?

  • If things are running smoothly it’s hard to imagine life being different. But what if you became unwell, and because you could no longer work your income suddenly stopped?
  • Like most people, if you were unable to go to work you’d probably be relieved to continue receiving most of your income. Income protection insurance offers a financial safety net so that if you become sick or injured you could continue receiving up to 75% of your income, if certain conditions are met.
  • And if you became terminally ill or died, life insurance may provide a lump-sum payment. This may help to pay off any debts or leave a nest egg for your loved ones.
  • Trauma cover could also provide a lump sum if you're diagnosed with a listed medical condition. The benefit is you could avoid financial stress and focus on getting life back on track throughout your recovery.

Our tips to make sure your cover is right for you

AMP has been helping to protect Australians for more than 160 years. Here are our top tips to help you get the most from your insurance cover:

1.     Schedule a health check in the morning

If you need to undergo a medical exam, arrange to do so first thing in the morning. Changes to things like blood pressure and sugar levels occur during the day and can give a health assessor an inaccurate or less favourable reading about your state of health.

2.     Act now

It generally costs more to buy insurance when you’re older. Health exams can be more demanding too. So it can be a good idea to put your cover in place now.

3.     Pay less by getting healthy

If you smoke you’ll generally pay more for your insurance cover because the risks to your health are considered higher. Try to cut out cigarettes and you’ll save twice: your premiums will be lower and you’ll also keep the money you’d normally spend on cigarettes!

4.     Consider your beneficiaries

An important feature in any life insurance policy is the beneficiaries clause, which determines how money will be passed on to your spouse and children. There may be tax benefits with this feature as well – you should consultant a tax adviser or accountant for more information.

5.     Keep up-to-date

Be sure to review your cover if something happens in your life. Your policy may need to be updated if:

  • you get married, move in with your partner or have a child
  • someone in your family dies, gets married or divorced
  • your income or job changes
  • the amount of debt you’re responsible for changes, such as when you take out a loan or credit card.

6.     Be sure your cover fits your needs

At times we may add new features or discounts to a policy. By regularly reviewing your policy and considering how your circumstances may have changed, you can make the most of any extras. Ask whether your policy will accommodate a higher level of cover if needed down the track. And ask about family discount benefits too.

Want to know more?

To learn more about protecting your future and different types of insurance have a look at our online learning module.

If you already have insurance with AMP you can check the level of cover you have by logging into My AMP. If this is through your super, check out your details, including the type, amount and cost of the cover.

Otherwise, you can speak to a financial adviser or call us on 131 267, so we can help you to protect what’s most important to you.

How much insurance do
you need?

There are many factors that can affect the level of cover you need. Our calculator can help you work out how much cover you may need.

Find out now

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© AMP Life Limited. It’s important to consider your particular circumstances and read the relevant product disclosure statement before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.

Although the information in this article is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decisions. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.