Premium
Your premium is the investment you make to protect yourself, your family and your financial future. Understanding how premiums work can help you choose cover that's affordable today while continuing to provide the protection you need in the future.
Your premium is the regular payment you make to your insurer in exchange for your insurance cover. As long as your premiums are paid and your policy remains active, you'll generally continue to receive the benefits outlined in your policy.
The cost of your premium is based on several factors, including your age, health, occupation, lifestyle, the type of insurance you choose and the amount of cover you have. For some types of insurance, your premium may also be affected by whether you choose stepped or level premiums, your excess, or optional benefits you've added to your policy.
It's important to remember that premiums can change over time. This may be due to factors such as your age, inflation, changes to your level of cover or premium adjustments made by the insurer. Your adviser can help explain why your premium has changed and whether your policy still meets your needs.
Paying your premiums on time is essential to keeping your cover in place. If premiums aren't paid, your policy could lapse, leaving you without the protection you've put in place.
Why It Matters
Your premium is the investment you make to protect yourself, your family and your financial future. Understanding how premiums work can help you choose cover that's affordable today while continuing to provide the protection you need in the future.
Common Misunderstandings
"A higher premium means I'm guaranteed a better policy."
Not necessarily. The right policy depends on your needs, the benefits included and how the policy is structured - not just the price.
"My premium will never change."
Not always. Depending on your policy, premiums may increase over time due to age, inflation or insurer pricing changes.
"If I miss one premium, my cover ends immediately."
Not necessarily. Many insurers provide a grace period, but if premiums remain unpaid your policy may lapse.
"The cheapest premium is always the best option."
Not always. Lower premiums may mean different benefits, definitions or levels of cover. It's important to consider the overall value of the policy.
FAQs about Premium
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Most insurers offer a range of payment options, including monthly and annual payments, although this varies between providers.
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Premiums can change due to factors such as your age, inflation, policy changes or insurer pricing updates.
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Possibly. Adjusting your level of cover, wait period, excess or premium structure may reduce the cost, although it's important to understand how these changes affect your protection.
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If premiums remain unpaid, your policy may lapse and your insurance cover could end.
Understanding your premium is about more than knowing what you pay - it's about making sure you're receiving value from your insurance. If you'd like to review your premiums or explore options that better suit your budget and needs, talk to a New Vision Financial Services adviser. We're here to help you keep your cover aligned with your life and financial goals.