The insider’s advantage

Unlike your car insurance, most life insurers offer what’s known as ‘guaranteed renewable’ policies – meaning that each year your policy is renewed, the insurer must continue to cover you under the same terms and conditions.

So regardless of whether your health has declined or you’ve taken up new activities, they cannot revoke your cover or change what you’re covered for.

For example, if you’re diagnosed with diabetes or even choose to start base jumping two years after you take out your policy, you’re guaranteed to have the same cover, for the same price. In fact, you don’t even have to tell your insurer about these changes.

An added benefit of this is that when most insurers make improvements to policy terms that benefit you, they will automatically include them in your existing policy – at no extra cost.

There’s more…

If your occupation becomes riskier, you don’t have to tell your insurer. But if you do, they generally won’t increase premiums, insure you for less, or change your benefits. However, if your occupation becomes less risky, make sure you tell your insurer as your premiums could be reduced.

The movement here is completely in your favour.

And more…

Look into future insurability, where you can increase your cover without any medicals when major life events occur (e.g. you get married or take on a larger mortgage).

The bottom line is, once an insurer takes you on, they take on the risk. So no matter how your behaviours change, you’re guaranteed the terms of your policy from the day you took it out. And, in some instances, you can improve your benefits, or reduce your premium, without additional risks or costs.


Important information

This information and white-labelled articles (“information”) are prepared by OnePath Life Limited (ABN 33 009 657 176, AFSL 238341). It is current as at September 2019 but may be subject to change. It is for the use of advisers only and may not be reproduced without the prior written consent of OnePath Life unless it is indicated otherwise.

While OnePath Life has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, OnePath Life does not accept any responsibility or liability arising from your use of this information.

This information and white-labelled articles (“information”) provided are of a general nature and have been prepared without taking account of your client’s objectives, financial situation or needs. Before acting on the information, your client should consider whether the information is appropriate, having regard to their objectives, financial situation and needs.

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