When you receive your insurance statement every year, have you ever wondered whether your insurances are a smart investment?

When these covers are purchased with the stepped premium type which increases every year with age, it's easy to eventually find yourself wondering if it is a smart investment.

Buying insurances is not just about choosing a bank or insurer, then working out what covers you need and how much of each type of cover you need. There is a third factor that is commonly forgotten and that is: 'How long do you need it for?'.

‘How long you need it for’ is a crucial question to consider when setting up a plan to catch you if you fall.

It's important to not only focus on 'today's cost', but also focus on the 'total cost' of the insurance. We tend to focus only on the cost today when buying so we end up comparing offers across multiple insurers or banks, aiming for cheaper premiums with top of the the best policy definitions.

While cheaper premiums and quality policy definitions are certainly a factor when you buy, they shouldn't be the only factor if you are wanting some of your cover to remain affordable long-term.

Level life insurance premiums can be utilised for the portions of cover you need longer term like income protection, trauma or a portion of your life and disability cover. The cost will stay affordable and you will save substantially with peace of mind.