Taking care of what is important
What is churning?
Churning is a term used to describe an activity of a broker whereby they systematically ask you to change your insurance company every 2 to 3 years in order to collect the new commission.
What are the risks of churning?
As we age our medical conditions deteriorate meaning a newly developed medical condition may be excluded by the new insurer. When applying for new coverage, you need to tell your insurer everything about your health. If you forget to tell and later make a claim for that condition, the new insurer may decline your claim which may have been covered by your old policy.
Why does my life insurance premium keeps going up each year?
Insurance premiums are determined by age so as you age the premiums are adjusted each year to reflect the risk of the insurance coverage. Your insurance amount also increased each year to keep pace with inflation.
How do I choose a good insurance Broker?
Ask you family and friends who did they use. A good insurance broker will identify all major risks faced by the client, prepare appropriate recommendations for you. These recommendations will be based on your objectives. If you have a limited budget, tell them upfront.
Most insurance professionals are good people with membership to professional bodies which set industry standards.