June 25 – Trevor Thompson

AMP share price dropped 12.9% yesterday due a profit downgrade. Two reasons cited were higher life insurance claims and higher policy lapse rates. There are many reasons why a policy might lapse, including competition since people like me want your business and work to find a lower cost option. However if our economy is slowing and people are losing jobs, dropping shifts or overtime then it may be a problem affording premiums.

If this happens, talk to your adviser. There may be ways to reduce or restructure your cover to lower the cost. Sure the policy may no longer provide the perfect protection solution but its surely going to be a better solution than no policy at all if tragedy befalls.

By Trevor Thompson. 
CFP DipFP

SENIOR PARTNER