What are your goals for the year ahead? Perhaps saving more money, getting healthier, or buying a home?
As you work hard to get there, having appropriate personal risk insurance in place can help you protect the road ahead. Here are some key things to consider, depending on your New Year’s resolutions.
I’d like to… save more
Are you looking at cutting your spending in 2023? Whether you’re saving for a big-ticket item or to build up your emergency fund, ‘saving more’ is one of the most common resolutions people make each year.
To ensure that you’re getting maximum value from the money you’re spending, now may be a good time to reassess your insurance needs, check for extras you might not need in your existing policies, and make changes if required.
For example, if you have health insurance and the size of your emergency fund allows it, you may be able to increase the excess on your policy. That’s the amount you agree to pay towards any claim: if you select a higher excess, you will pay a lower premium than you would if you had a lower excess – which can free up cash flow.
I’d like to… live a healthier life
Here’s another popular new year’s resolution: to exercise more or live a healthier lifestyle in general. And if that’s what’s on your mind, your insurance may just give you some extra motivation.
For example, some insurers offer discounts on gym memberships or sports gear. And if you wear a fitness tracker, you may be rewarded for achieving set activity goals. Plus, if you’re a smoker and quit for good for at least 12 months, you can let the insurer know by signing a non-smoking declaration and they will switch you to non-smoker premiums.
I’d like to… buy my first home
Thinking about stepping on the property ladder now that house prices are dropping across most regions? If you’re on the path to homeownership, insurance can help you safeguard your deposit.
For example, with income protection you can replace some of your income, after the specified wait period, if you suddenly lose your earning power due to a serious illness or injury - so you’re less likely to dip into your deposit savings. And of course, if you’re buying a house with a partner, life insurance could protect this shared goal from the unthinkable. Remember: insurance is not just for the goals you achieve, but also for those you’re working hard towards.
I’d like to… start a family
If starting a family is on your horizon, consider giving yourself an insurance check-up.
The arrival of a little one can have a big impact on your insurance needs. For example, you may consider taking out life insurance or increase the level of life cover you already have. How much cover you need depends on how you’d like your family to use the lump-sum payment, should something happen to you. For example, the life insurance payout may allow them to cover your child’s education or repay debt.
Plus, once your baby finally arrives, you may also consider adding them to your existing policies - like health insurance if you have it. Generally speaking, most providers allow policyholders to include babies on their policy within the first few months without underwriting (which means, any pre-existing conditions may be covered). Timeframes vary across companies, but this option is usually available within three months of the baby being born.
I’d like to… start my own business
Is 2023 the year you unleash your entrepreneurial spirit? Getting an appropriate level of cover can help you protect your creation.
The type of cover you need depends on how your business is structured. If it’s a solo project, key person insurance or income protection are worth considering. Plus, health insurance could give you faster access to treatment, so that you’re back on your feet as soon as possible.
On the other hand, if you have a business partner, you may also want to consider shareholder protection insurance. This key protection tool is designed to provide all-important funds should a shareholder pass away or be unable to work due to a serious illness or injury, minimising financial disruption to the business. Get in touch to learn more.
Like to talk?
Are you getting on track for the new year? Get in touch – we’d be happy to help you review how your insurance supports your goals.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.