They say that the one constant in life is change, and this is certainly true for anyone entering their senior years. Suddenly you may find yourself working less, enjoying your hard-earned money more and spending your time on more relaxing pursuits. However, lifestyle is not the only thing that evolves as you enter into your next life stage. As your health and financial needs start to change, so do your risks and insurance requirements.

Bertus Visser, Chief Executive of Distribution at PSG Insure, points out that people in their senior years should start to look at their risk management processes a little differently. “Around age 65 or 70 is when you should start taking stock of changes in your vehicle usage, the possible shrinking of your asset base, your medical needs, and life insurance requirements – alongside a range of other factors.”

In recognition of National Older Persons Week from 27 September to 3 October, Visser says it would be wise to have a long conversation with your adviser about structuring an insurance portfolio to match your current needs and suit your pocket, allowing you to make the most of your finances.

“It’s important for older people to revisit their insurance portfolio and adjust their cover as they downscale their lives, since this will impact their risk profile. For instance, if they are moving to a retirement village or old age home, this will impact their risk profile and they should pay a smaller premium. Similarly, you might scale down on the possessions you take with you to a smaller property, and this in turn can impact on the amount of cover that you need.

“The same applies to their vehicle insurance: as they drive less, their risk reduces and they may want to increase their excess to pay a smaller monthly premium. In fact, some insurers waive the excess entirely for people over the age of 55. Many insurers now also provide the option to pay only for the mileage you drive, which is a good option for older people who generally tend to drive less.”

On the one hand, people over the age of 55 can actually get much lower premium rates for car insurance than younger people as they are considered less “risky”. While on the other hand, these lower premiums may come with a few additional stipulations to comply with which may change as you age to help you manage your risks better.

Lastly, value added services can be a great addition to your portfolio, according to Visser. “Add-ons such as 24-hour emergency assistance, road cover including license renewal services (which can be very beneficial to older people), free assessments, tyre and excess solutions can come in handy and make life a little easier whilst helping to save a little money too.”

He adds that entering into your next life stage has its benefits and presents a great opportunity to better manage your risks while scaling down your spend on insurance products. “It may become a bit more complex to compile a great insurance portfolio, but a good adviser can make it happen,” Visser concludes.

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