YOUR QUESTIONS ANSWERED: Insurance as you age
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Readers’ queries answered by financial experts, sponsored by PSG Wealth. Email your queries to [email protected]
Insurance as you age
I’m turning 60 next year and approaching retirement. I’m thinking of downscaling to save costs on my monthly living expenses, but I’m worried that if I cut my insurance down, I won’t be covered for all my risks if something should go wrong. How can I reduce my insurance costs, but still make sure I have the right cover?
Joelinda Dimond, PSG Insure adviser, personal and commercial, replies: It’s important for older people to revisit their insurance portfolio and adjust their cover as they downscale their lives. If you are moving to a smaller property or to a retirement village your risk profile will change and your asset base should also be smaller, therefore you should pay a smaller monthly premium.
Similarly with vehicle insurance, if you drive less because you are no longer driving to work every day, you become less of a risk and your premium should come down. You can even opt for a higher excess to reduce your premium as your risk of accidental damage decreases by driving less. Some insurers waive the excess entirely for people over the age of 55 and many insurers now provide the option to pay only for the mileage you drive – this is a good option for older people who tend to drive less.
Value-added services such as 24-hour emergency assistance, road cover including license renewal services (which can be very beneficial to older people), free assessments, tyre and excess solutions can come in handy.
It’s best to talk to an adviser who can help structure an insurance portfolio to match your changing needs.