Hi Vanessa,
I’m in my early 50s and my husband and I have had life insurance for over 15 years. We’ve always paid the premiums, even when things were tight. But lately with the cost-of-living skyrocketing, we’re really struggling.
We’ve been talking about whether we should just cancel the policy because it feels like a luxury we can’t afford anymore.
The hard part is that we still have a mortgage, and two teenage kids. I’m the main income earner, and if something happened to me, I honestly don’t know how my husband would manage. But the premiums are high, and every month it gets harder to justify the spend.
It’s really stressing me out. We’re not sure what to do – and we don’t want to make a mistake we’ll regret.
Feeling the Pressure, VIC.
First, please know you’re not alone – so many families in their 50s are facing this same dilemma. It’s tough balancing immediate living costs with protecting your family’s future.
Before you make any final decision, it’s well worth exploring whether your policy could be adjusted to reduce your premiums. Many people don’t realise that insurance can often be restructured – and sometimes, it makes sense to review your level of cover or how your premiums are paid.
Leading money educator Vanessa Stoykov
Adrian Chan, Principal Adviser at Zurich Assure
Adrian Chan, Principal Adviser at Zurich Assure, shared this practical reminder that might help you look at it differently.
‘There are different ways to structure your insurances. One of those could be utilising superannuation to pay for insurance premiums. It’s not a one-size-fits-all solution and comes with both benefits and downsides but could fulfil a need whilst cashflow remains tight.
‘Before making any changes, I would encourage you to engage with a financial adviser to discuss your current situation and needs so that they can recommend a suitable plan that works within your budget.’
This is exactly why a review with a trusted adviser can help you find the best option for your family – whether that’s tweaking your benefit amount, changing premium structures, or checking if you’re doubling up with cover inside your super fund.
If you don’t have an adviser you trust, I offer a free service to connect you with one who can look over your current arrangements and see if you can get a more competitive rate.
You’re doing the right thing by asking the question instead of quietly cancelling. These conversations can make a huge difference – and your future self (and family) will thank you for it.
Good luck exploring your options,
Vanessa.
