Flexible options to keep your cover affordable
We understand that financial circumstances can change. This page offers practical options to help you manage your life insurance costs – whether you're reviewing your cover, adjusting premiums, or exploring support during financial difficulty. We're here to help you stay protected while keeping cost affordable.
Change your cover
Reducing your cover or making changes to your insurance is one way to keep your policy affordable. We recommend speaking to your financial adviser before making any changes.
- Reduce how much cover you have: Your insurance needs may change over time. For example, if you’ve reduced your mortgage or your kids have finished their education, you may not need as much cover as before.
- Income Protection – increase the waiting period: A waiting period is the period between becoming disabled or ill, and when an income protection benefit starts being paid. You may have accumulated extra sick or holiday leave that can provide an income buffer if you are unable to work due to sickness or injury. By increasing your ‘waiting period’ for example from 30 days to 60 or 90 days (longer waiting periods are available) you may reduce your premium.
- Income Protection – reduce the benefit period: A benefit payment period is the maximum length of time your income protection or benefit is paid for while you remain disabled. As you get older or your financial situation changes, you may not require the same benefit payment period you chose when you took out your policy. Reducing your benefit payment period may result in a reduction to your premium. For example, moving from a Lifetime benefit to an aged 65 benefit or reducing your period from an aged 65 benefit to being paid a benefit for 5 years.
- Removing additional options: Your insurance policy may include additional cost options – like premium waiver, Life Cover buy back, which carry additional costs. Removing an option that you no longer require can help reduce your premiums, but it does remove the benefit of the option. You can ask us to remove any additional options. But remember that if you do cancel these, you will not be able to claim under them and may not be able to add them back in the future if you change your mind.
- Restructure your insurance from standalone to linked: If you have life, total & permanent disability and/or trauma insurance, you may be able to choose to make the covers either standalone plans or link them under the same plan. Standalone plans usually have a higher premium than linked cover, as with linked cover any claims on one type of cover generally reduces the sum insured for the other linked cover. For this reason, standalone plans are more expensive.
Change how you pay
The premium structure or premium frequency you choose on your plan may affect the premium you pay. Reviewing these may help reduce your premium.
Choose to keep or opt out of the inflation adjustment
To make sure your cover keeps up with the cost of living, you may have selected an automatic increase to your amount of cover without you needing to provide medical or other details. This is called an 'inflation adjustment'. Each year we increase your sum insured by either a fixed percentage or the increase to the consumer price index (CPI). We'll apply whichever of these is higher, which means you'll get more cover. As your cover increases so does your premium.
You can ask us to decline the increase in the sum insured from indexation at the policy anniversary. It's a good idea to speak to your financial adviser about how inflation may impact your personal circumstances, so you can decide whether inflation adjustments are right for you. This can also be done in My Resolution Life, just search for ‘inflation adjustment’. You can learn more here.
Change your payment frequency
Most insurance products offer savings when you pay your premiums annually. While some may charge more for more frequent payment options, choosing annual payments can help reduce your overall premium. You can request a change to your payment frequency at any time through the My Resolution Life portal.
Speak to your financial adviser
Consider speaking with your financial adviser before changing or cancelling your cover to make sure you’ve considered all your options and are making the right decision based on your circumstances. Alternatively, you can contact us and we can discuss some product options with you.
Depending on the product you hold, you might be able to use our cover adjustment tool in My Resolution Life to increase or decrease your sum insured, modify waiting and benefit periods and instantly receive updated quotes and cover options.
Review your health and past time loadings
Your medical history, pastime and occupation all contribute to how your insurance cost is calculated. If you have changed your occupation to a less manual occupation, stopped smoking, or had an improvement in health and have an existing health loading on your policy, you may be able to apply to have your cover reviewed and reduce your premium.
Changing your smoking status
Smoking puts your health at risk – which is why it will impact the amount of your premiums. If you change from a smoker to a non-smoker status, it may reduce your premiums.
If you’re not a smoker, check your policy schedule to ensure your smoking status is correct. You can also check your smoking status in My Resolution Life.
If you have stopped smoking or using nicotine replacement products and haven’t smoked any other substance, including vaping for more than 12 months, and have no illnesses caused or made worse by your smoking habits, you can apply to be reassessed as a non-smoker.
You can find the Digital Non-Smoker Declaration form here.
Changing to a less hazardous occupation
TPD and IP insurance is generally more expensive for those who have more manual occupations, due to a higher accident/injury risk. If you have moved to an occupation that is less manual, for example you are now a supervisor rather than on the tools, we may be able to reassess your occupation, subject to underwriting.
Request a reassessment of health loadings
For certain medical conditions, a health loading or an exclusion may have been applied to benefits under your policy. A health loading is a percentage increase in the cost of the premium. If you had health conditions when you originally purchased your insurance, for example high blood pressure or cholesterol or you had back or knee pain which resulted in a loading or exclusion applying to your benefits, and your health has since improved, we may be able to reassess your health loading, subject to underwriting.
Request a reassessment of pastime loading/exclusion
Certain sporting and recreational pastimes, such as climbing, motor sports or scuba diving are considered risky and may result in a premium loading or an exclusion. If you are no longer participating in these types of pastimes, we may be able to remove the loading or exclusion, subject to underwriting.
Other affordability considerations
From ‘freezing’ your premiums to exploring support during financial difficulty, these options can help you make informed choices that suit your changing needs.
Premium freeze
Some products offer the option to freeze* your premium in exchange for a reducing benefit amount. This means your premiums won’t increase each year, but your sum insured or monthly benefit will reduce each year. Before making any changes, you should check your policy terms carefully or speak with your financial adviser.
*Applicable for Risk Protection Plan policies with a stepped premium
Supporting you through financial hardship
If you're experiencing financial difficulty, contact your financial adviser or contact us to talk about how we may be able to help you. We understand that everyone’s circumstances are unique, so we'll assess your situation and discuss your options to help you through this period.
These options could include:
- Accessing features within your policy that may reduce or waive your premium.
- Altering your options or cover levels to make your premium more affordable.
- If your employment circumstances have changed, such as experiencing a reduction in income or unemployment, please contact us to talk through the impact this may have on your insurance cover.
Important information
The content of this website is for information only, it does not contain any financial advice or other professional advice or make any recommendations about a financial product or service being right for you. The information provided by Resolution Life Australasia Limited ABN 84 079 300 379, NZ Company No. 281363, AFSL No. 233671 (Resolution Life), is of a general nature and does not take into account your objectives, financial situation or needs. Before taking any action, you should always seek financial advice or other professional advice relevant to your objectives, financial situation and needs, as well as consider the policy document for the product. Any guarantee offered in the product is only provided by Resolution Life.
Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.
Resolution Life can be contacted at resolutionlife.co.nz/contact-us or by calling 0800 808 267.
