There are different factors which contribute to your premium increases each year. The main reason is due to recent claims experiences for those in your age demographic. As you get older, the likelihood of you making a claim on your insurances rises and therefore your premiums tend to rise as you get older. Inflation is also a factor which can impact on your premiums.
There are options available which avoid the headache of increasing premiums such as levelling your premiums – this involves agreeing your premiums for a set period of time instead. During these set periods, the premium tends to be higher than what it otherwise would be, but you can enjoy savings in the long run.
The amount of life insurance you need depends on your personal circumstances. It is important to consider who would be affected should you pass and how this would financially impact them. For example, if you are single, renting and have no children to provide for, you would require a lot less cover than say someone who is in a relationship, has children and extensive debts, such as a mortgage.
The reality is that throughout your lifetime your circumstances will change and so the amount of life cover you need is fluid and should be adjusted regularly.
Health Insurance and Income Protection are two different products and cover different risk areas in your personal life. Health Insurance pays for the costs of surgery and specialists and tests and income protection pays you a monthly amount to cover your expenses like rent, mortgage and general bills.
What a lot of people don’t realise is that having health insurance won’t pay you any money if you suffer a serious illness, it will pay your medical bills but if you are off work due to illness you may be in strife. Most people who are dependent on their income should have some income protection.
The insurance companies will assess your claim and go through past medical history. The main reason the insurer won’t pay out is due to non-disclosure which means that you haven’t told them something during the application process. At Hammock we have a history of getting claims paid and we have the best team to support you though the claims process.
The best way to guarantee you will be paid at claim time is to go through the process thoroughly, not cut corners and provide medical information up front to the insurer so they have all the information they need to assess your claim at the application stage.
Yes. ACC is in place to compensate for surgeries, tests and income when a person suffers from a accident. The statistics show that if you are going to be off work for longer than six months then it is likely that you would have suffered a major illness rather than an accident. It’s important to note that in the event of suffering an illness like cancer, heart disease or a stroke, ACC won’t pay you anything under ACC.
As a customer of Hammock you don't actually pay us for advice upfront out of your own pocket. Instead Hammock will usually get paid a commission from the provider you choose to purchase insurance from. The amount of commission we receive for our service is dependent on the type of Insurance product you choose to purchase as well as the company you choose to purchase from. For a personal insurance policy Hammock could receive commission ranging from 33% to 200% of the first years premium. This means that if you pay $500 in your first year the commission to Hammock would be maximum $1000. For a house/car/contents policy we get between 10% and 20% of first years premiums.
There is also a annual commission paid to advisers to service their clients. This commission is sometimes called renewal commission or servicing commission and the amount of servicing commission varies depending on the amount of initial or upfront commission taken at the start of the policy. At Hammock we take a spread commission approach where we take less upfront and more servicing. This means that we are incentivized to provide excellent service to our clients over a long period of time.
On the face of it commission rates can seem high and it's important to know what your commission actually buys you going forward. A relationship with Hammock is not only a sales process; you receive ongoing support and reviews each year and most importantly you get a qualified lawyer to look over and manage the claim process for you at no cost -if you need to claim on your insurance in the future. The commissions insurance companies pay advisers also has to take into account the cost of bringing on new clients and finding new people to work with (marketing), also a lot of the time we will provide advice to people and not receive any form of remuneration.
At Hammock we will keep you informed with how your decisions impact our commission so you can make informed decisions every step of the way. A breakdown of the commission we receive from each provider is available on request by emailing email@example.com.
Yes, we have many options around structuring your insurance cover in a way which maximises your claim ability and also let's you get the amount of coverage you and your family require.
You should review your cover at least every year and especially if you have had a major life event like a new job, taking on a mortgage, having a child etc.