For most of us, long-term insurance is one of our biggest assets, yet we spend very little time understanding it.

Am I over-insured? Does my company provide life insurance and how does that work?  What is my premium pattern? Am I going to be able to afford my premiums in ten years’ time?

This week’s podcast was motivated by a LinkedIn post by certified financial planner Bryan Nicol, entitled “R880k wasted on insurance my client didn’t need”.

He explained that most people consider employee benefits and personal finance as separate entities. Certified financial planner Johann Peens posted a comment with other advisers, saying clients do not even know what cover they have.

This discussion turned into a podcast conversation because while most people have some form of long-term insurance, most could not tell you much about it. As a result, we probably don’t have the right cover for our needs.

Many people are unaware of the extent of their insurance coverage, often assuming that their employer’s life insurance is sufficient. This leads to a false sense of security, which can lead to significant gaps in financial protection.

Many employees don’t fully grasp the difference between pensionable salary and risk salary, which can drastically affect the payout their loved ones would receive in the event of their passing.

In this discussion Bryan and Johann explain what you need to know about your employee benefits and the questions you should be asking your employer and financial adviser.

We then go on to explain premium patterns for long-term insurance and the affordability of insurance as you age. We explain the difference between different premium patterns, especially when it comes to comparing quotes, and how aggressive premium increases can leave you struggling to keep up with payments in later years.

This is why understanding and continuously reviewing your long-term insurance cover is so important. So listen to this podcast and make sure that those premiums you are paying are giving you bang for your buck.