How to keep cover affordable
Four ways to more affordable cover
1. Decline the automatic annual Consumer Price Index (CPI) increase to your cover.
To keep pace with the rising cost of living, an automatic CPI increase is applied to your cover at each policy anniversary. The increase is based on CPI and will range up to 10%. As the cover amounts increase, the premium usually increases too. So, choosing to decline this increase may reduce your premium. Let us know and we can adjust the level of cover and your monthly premium accordingly.
2. Decrease your cover ‘sum insured.’
You can ask us to reduce the amount of cover you have, which in turn will reduce your premium.
See the example below where Anna was able to reduce her premium by nearly $50 per month.
Affordability
Example
Anna is finding it a bit tough financially at present but wants to stay protected. She’s decided to look into reducing her amount of cover (sum insured) to see if lowering her premium amount will help her manage her expenses.
Anna reviewed her budget and decided to retain her policy with a reduced sum insured of $300,000 which gave her almost $50 extra each month, and the peace of mind she was still covered.
Anna considered the following options:
Note:
Changes to the sum insured may impact the amount of other benefits. The premium examples above are based on the current My Protection Plan product that has been available since 5 April 2021. To find out how reducing your cover could affect your premium please contact the ALI team on 1800 006 776.
3. Help offset the cost of your cover by using ALI’s Extra Benefits
As an ALI customer, you have access to Extra Benefits, which gives you access to discounts on eGift cards from a range of retailers – enabling you to save on groceries to petrol, home goods and travel. These everyday cost savings could help offset some or all of the cost of your cover.
Ready to calculate what you could be saving? We’ve created a handy savings calculator to get you started.
4. Have you stopped smoking?
Higher premiums apply for those who have smoked cigarettes, e-cigarettes, nicotine replacements or any other substance in the last 12 months. If you were a smoker at the time you took out your policy, and have stopped smoking for 12 months or more, you should tell us and we will re-calculate your premium based on the non-smoker rate.
Please reach out to our friendly team on 1800 006 776 if you would like to discuss any of the options in more detail. Our team are here to help.
Extra Benefits is provided by ALI Group Pty Ltd ABN 42 101 330 036 using services provided by The Ambassador Card ABN 27 271 418 094. Terms and conditions apply – visit https://extrabenefits.aligroup.com.au/page/terms-conditions. © ALI Group 2024
Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSL 226403. Any advice provided is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before making a decision to buy a financial product, you should consider the information contained in the relevant product disclosure statement. © ALI Group 2024