Insurance renewals

As your career continues to evolve, so does your lifestyle and your protection needs.

A lot can happen in a year so reviewing your situation regularly ensures that you and your loved ones remain adequately covered so that in the unfortunate case of an accident or illness, nothing falls through the cracks. 

Your PIP / PIPP policy explained

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Speak the language

Anniversary date: the anniversary of when you started your policy

Commencement date: the date you started your policy

CPI increase: an adjustment to maintain your level of protection as the cost of living goes up

Level premiums: ones that do not get affected by age

Premium increase: due to a CPI increase, a rate increase roll over or your age (for stepped policies)

Rate increase: applied by the insurer after their annual rate review

Renewal date: 1 June - when your premium is paid for the next 12 months (applicable for PIP / PIPP policies only)

Stepped premiums: premium re-calculated based on the degree of risk associated with your age each year

 

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Calculating your premium

 

With insurance covers such as PIP or PIPP, you have a fixed renewal date of 1 June regardless of when you started your policy (anniversary date). However, your premium is calculated and secured for 12 months based on your commencement date.

This means that a rate increase may get split over two years depending on your anniversary date.

Still confused? We don’t blame you! Here's an example that might help.

The evolving market

Your insurance cover is a product that has been created by an insurer to tailor to specific needs in the market at a certain time. It evolves constantly as the insurer re-evaluates what benefits should be added or modified depending on the context and the evolution of the market. The reasons why Australians use their insurance benefits have changed; and it’s impacting the insurance and claims environment on a broader scale.

FAQs

Personal insurance is a vast and complex environment. Below is a compilation of frequently asked questions and their answers which you may find helpful. For more information, get in touch with your DPM Insurance Consultant.

Is there a rate increase for this renewal period?

No, there is no rate increase. You may however, notice that your premium has increased which could be the result of a CPI increase and/or the remaining portion of last year's increase which has rolled over into the current period. Watch the explainer video here

I feel like my level premium is continually going up, would I have been better off with a stepped premium?

The recommendation for a level premium structure is based upon how long you intend to hold your cover for. With all factors being equal if you are holding your cover for longer than 10-12 years, the level premium option is more often than not the most cost effective. The alternative of having a stepped premium structure provides short term cash flow advantages but over a longer period it is likely to cost more.

Although level premiums do not increase based on your age or your likelihood of making a claim, it doesn’t mean that they don't go up. The only two reasons for a level premium to increase are an automatic CPI increase that changes your level of cover, or an overall rate increase to your cover passed on by the insurer behind your product.

Can my insurance arrangements be altered or can I change insurer?
Can DPM recommend products other than PIP or PIPP*?

Absolutely! It is important for you and your DPM Insurance Consultant to regularly consider changes in your personal and financial circumstances, and your current insurance needs. Part of the DPM advice process is to research the insurance market and recommend products that meet your requirements at the time of your review. DPM Insurance Consultants are not aligned to any particular insurance product and are obligated to provide recommendations from any product in the market that will be in your best interest, so you can be confident you have the best suited solution.

What are my options for reducing premiums?

There are a number of alternative strategies that could be considered to reduce premium costs. Your DPM Insurance Consultant can help you work through the various options during your review:

  • Making changes to your benefit waiting period;
  • Reducing the benefit amount;
  • Modifying extra benefits; and/or
  • Considering other products in the market.

Next step: review your options

Regular reviews ensure you and your loved ones maintain the right level of cover for your evolving situation - not more or less than what you need.

Talking to your DPM Insurance Consultant is the best place to start. They're here to help!

1800 376 376  |  www.dpm.com.au

DPM Financial Services Group
1 Palmerston Crescent, South Melbourne VIC 3205
Level 10, 133 Castlereagh St, Sydney NSW 2000

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* Professional Insurance Portfolio and Personal Insurance Protection Plan are products of AIA Australia Limited ABN 79 004 037 861 AFSL 230043 (insurer), administered by Doquile Perrett Meade Pty Ltd ABN 32 060 227 885

Every effort has been made to offer the most current, correct and clearly expressed information possible within this page. Nonetheless, inadvertent errors can occur and applicable laws, rules and regulations may change.
The information contained on this page is of general nature only and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of the information contained herein. Users are encouraged to contact their DPM Consultant for advice concerning specific matters before making a decision.