During tough economic times, you may look for ways to cut your expenses. However, when reviewing your budget, insurance should be one of the last items examined.

If the unthinkable were to happen and you didn’t have adequate insurance, the financial impact on you and your family could be quite dramatic. Regardless of whether you’re feeling the squeeze right now or looking for options to reduce your expenses, there are a number of ways many of us could make personal insurance cover more affordable.

1. Buy your insurance in super

If you buy your insurance through a super fund, you may be able to take advantage of a range of tax concessions generally not available when insuring outside super. Alternatively, you could arrange to have your premiums deducted from your existing superannuation account balance without making additional contributions to cover the cost.

This could make your insurance affordable if you don’t have sufficient cash flow to fund the premiums. The trade-off with this option is that you will use up some of the money that could otherwise meet your living expenses in retirement.

While this could impact your lifestyle when you retire, think of what could happen to your family’s lifestyle in the interim if the worst were to happen. Without insurance, your family could run down your savings very quickly and face financial difficulty well before your intended retirement date.

2. Pay level premiums

If you elect to pay level rather than stepped premiums, you could reduce the long-term cost of your insurance considerably. This is because, over time, level premiums could end up cheaper, often at a stage in life when you need the cover the most. You can learn more about this strategy here.

3. Pay your premiums annually

In some cases, you may be eligible for a discount if you pay your premiums annually, rather than monthly.

4. Consolidate your insurances

Holding all your personal insurances in the one policy could enable you to save on fees. Fee savings could also be made by consolidating the insurances held by yourself, your spouse and other family members (in some cases) into the one policy.

5. Choose a longer waiting period and shorter benefit payment period for Income Protection

Most Income Protection insurance policies enable you to choose how long you will need to wait before the insurance benefit will start to be paid and how long it will be paid for. Choosing a longer waiting period and a shorter benefit payment period could reduce your premiums, in some cases significantly.

6. Reduce the sum insured

As a last resort, you could consider insuring yourself for a lower amount. If something were to happen to you, this would clearly be a better option than cancelling your insurance completely. But you also need to keep in mind that reducing the sum insured could leave you (or your family) without sufficient money to meet your financial goals should the unthinkable happen.


If you wish to discuss your options further, Rebecca from PEB Financial Planning can be contacted on 1300 187 894 or by booking a free consultation at your home or our offices in Inglewood or Willetton.

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*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.

PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.

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PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098.