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Reviewing your Death and TPD Insurance Cover could lead to savings amid cost-of-living challenges

The information contained in this article contains general advice and is provided by Hood Sweeney Securities Pty Ltd [AFSL 220897, ABN 40 081 455 165]. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. Any examples provided are for illustrative purposes only. Please refer to our Financial Services Guide (available at for contact information and information about remuneration and associations with product issuers.

Consumers are feeling the pinch in the current economic climate, making it more important than ever to find ways to save money.

Have you thought about reviewing your Death and Total and Permanent Disablement (TPD) insurance cover? It may seem counter-intuitive - saving money on insurance, a budget item that only seems get more expensive - but for some, truer words have never been spoken. Find out why.

Why Now?

The financial strain of the cost-of-living crisis has led many of us to scrutinise our expenses, but insurance may be overlooked because it is is perceived as a fixed cost.

Lately though, insurers have been actively competing for new business, particularly in the Death & TPD space. This has resulted in attractive premiums being offered to new clients, while loyal existing customers watch their premiums increase.

This recent activity has created opportunities for our clients to shop around for significant premium savings from alternative insurers to protect them in the event of premature Death, or Total and Permanent Disablement.

Death and TPD cover can provide a safety net for you and your family in the unfortunate event of Death or a condition that leads to Total and Permanent Disablement. They can cover expenses such as medical bills and mortgages and provide an ongoing income stream for your family.

This financial support is invaluable if the unthinkable happens and you are unable to provide for your family.

Consumers who haven’t had their personal risk insurances reviewed by a Financial Planner with expertise in this area may find they are under-insured, and/or don’t have Death and TPD insurances structured appropriately to ensure optimum tax effectiveness and increased certainty at claim time.

Other factors that could contribute to cost reductions in your Death and TPD insurance include:

  1. Financial Circumstances: It may have been a few years since your insurances were last reviewed. In that time, your need for Death & TPD cover could have changed. Perhaps your debts have come down, you are part way through paying off school fees, and your investment assets such as superannuation have increased.

  2. Health and Lifestyle Changes: If you’ve made significant health improvements or lifestyle changes since taking out your policy, you might qualify for lower premiums. Many insurers now offer discounts for non-smokers, those with healthy BMIs, or individuals who have taken steps to reduce health risks.

  3. Bundling Discounts: Many insurers offer discounts for bundling multiple types of coverage. If your Death and TPD cover is with different providers, consolidating them might yield potential savings.

Case Study

In a recent engagement with a husband-and-wife client, our team conducted a comprehensive review of their existing insurance policies, given it had been a few years since their last review. The purpose of the review was to:

  • Ensure they continued to have appropriate levels of cover in place given their current financial circumstances and needs, and

  • Obtain premium savings where possible.

These clients were open to going through the insurance application process if it meant achieving savings with equivalent quality policies.

Following the insurance review process, we were able to obtain the husband savings of approximately $4,400 in the first year alone by moving to another insurer, on a like for like basis, on $2,000,000 of Death & TPD cover.

For the wife, we achieved premium savings of just over $4,500 in the first year, on a like for like basis, on $2,100,000 of Death & TPD cover.

Further premium savings were possible because the need for cover had come down for both the husband and wife since their last insurance review.

This proactive review process resulted in significant savings for the clients on their personal risk insurances, while also providing them with the peace of mind that they have the appropriate levels of cover in place for their current circumstances.

Navigating the complexities of life risk insurance policies can be daunting to tackle alone.

At Hood Sweeney Securities Pty Ltd (AFSL No 220897 ABN 40 081 455 165) personal life risk insurance is a specialist service. We have a dedicated team of Representative Financial Planners who specialise in personal life risk insurance, armed with the skills and experience to help clients achieve appropriate and cost-effective life risk insurance coverage for their needs.

Schedule a review of your Death and TPD cover with us, a process that could lead to additional comfort if you’ve not had insurances reviewed before, and to savings for those who haven’t had their insurances reviewed for some time.

Ensuring you are not overpaying for essential coverage is a step towards improving your financial health.

For more information on the content of this story, contact:

Cooper McRae

Financial Planner | Life Insurance Specialist

Representative of Hood Sweeney Securities AFS Licence No. 220897

1300 764 200

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