Things are getting tight. Inflation is still there. Costs are increasing, the family is getting older.
So, lets cut the insurance, or just let it lapse.
This is a common thought process. But, read the article below - and think twice before you get rid of that insurance...
Aussies letting insurance lapse right before it's needed
By Katarina Taurian Investor Daily (Australia)
Forty-nine is "danger year", says Asteron Life
Australians are letting their trauma insurance lapse shortly before they need it, according to data from Asteron Life.
The average age for a trauma event and subsequent insurance claim is 49, the group stated. However, statistics show the average age of cancellation or lapse is 44, while the average age of take-up is 40.
Forty-nine is the common age for trauma insurance due to mature onset diseases like cancers, cardiovascular diseases and stroke, according to Asteron.
Reasons for the lapse include affordability and a change in marital status. Mr Vilo suggested financial advisers should review the clients' needs based on these changes.
"In situations where affordability is challenged, you're better off to reduce some of your cover and still have some in place, rather than remove it altogether and leave yourself fully exposed," he said.
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By Paul Swarbrick
