Get ready

to pay higher insurance premiums from 2018 

The insurance industry is set for drastic change.
Prepare yourself and your finances for what’s ahead

The life insurance industry is preparing for major changes under sweeping Government reforms slated for the end of 2017. And while the reforms were designed to protect the average Aussie consumer, experts say the changes could leave consumers worse off.

 

Here’s what you need to know about the changes on the horizon – and how you can avoid falling victim to the hidden reform traps.

Why TV insurance ads
might seem easy
but could cost you more.

TV advertisements selling life insurance are an all-too-familiar sight these days, and while they might make the process of buying life insurance simple, it’s easy to overlook the fine print. When purchasing insurance direct from TV, you’ll generally pay a higher premium, and one that is likely to increase every year.

 

Not sure about the fine print? Ask for help. >

Why TV insurance ads
might seem easy
but could cost you more.

TV advertisements selling life insurance are an all-too-familiar sight these days, and while they might make the process of buying life insurance simple, it’s easy to overlook the fine print. When purchasing insurance direct from TV, you’ll generally pay a higher premium, and one that is likely to increase every year.

 

Not sure about the fine print? Ask for help. >

Reducing the ‘churn’ rate will reduce competition

The proposed changes would have us believe that churning is bad, when in fact it’s a sign of a healthy and evolving economy. Churning – the process of customers switching from one policy to another – encourages competition and puts the onus on the insurer to continually provide a great value service at the right price, or risk losing clients to their competitors.

 

By discouraging churn, the government is paving the way for big insurers to keep customers tied to second-rate policies – reducing competition within the market, and leaving insurance advisers hamstrung to help their clients find a better deal.

Higher commissions to be paid from YOUR pocket

With the aim of reducing churn and improving customer longevity, the proposed changes seek to turn the insurance industry on its head through lower upfront commissions and increased ongoing commissions. But where will these increased long-term commissions come from? Where else but from the consumer’s pocket.

 

In order to cover the gap, advisers are likely to start charging a fee for service. And to compensate for higher ongoing commissions, insurance companies will most likely need to increase their premiums. In fact, five insurers have already raised their prices since the changes were first announced, and many others are expected to follow suit in the months ahead. 

With the reforms looming, there’s never been a better time to review your insurance in order to protect yourself and your finances. Here’s how:

 

Compare and save: From 2018, most advisers will be forced to charge a fee for service to cover rising costs. To ensure this fee isn’t being passed on to you, do your research – compare your policy against other insurers in the market to make sure you’re getting the best deal.

 

Consider level premiums: Level premiums do not increase with the age of the policyholder, which equates to long-term savings and greater control over your insurance policy.

 

[EXAMPLE CTA] Get a quote now. Enter your details below to compare policies and find out instantly whether you’re paying too much for your insurance policy….

 

1

Compare your policy

to ensure it remains

competitive

 

You’ve undoubtedly heard it before, but when it comes to insurance, it really does pay to compare. In fact, the exact same insurance policy has been shown to differ in price by up to 40 per cent from one insurer to the next.

 

So how can you be certain you’re getting the best price on your policy? Do your research – compare your policy against other insurers in the market to get the best deal.

Why wait?

Compare now and save. >

2018 industry reforms

Get ahead of them!

Government reforms are set to hit the insurance industry hard in 2018, changing the way commissions are paid and giving more power to the bigger players in the market.

Even though upfront commissions are set to drop and ongoing commissions will rise, no insurance company has given any indication that they will reduce premiums as a result. In fact, at least five insurers have already increased their premiums since November 2016.

Are you paying too much? 

Let us look after you.

Request free expert advice

and save immediately.

insurance tips and tricks powered by Clear Choice Financial with love,

 

At Clear Choice Financial we believe in empowering clients with everything they need to know in order to make the right decision when purchasing life insurance and mortage products. If you have any questions reach out and call 1300 599 512.