A health crisis can occur at anytime of life, but the risks obviously increase as we age. Unfortunately, due to this increased risk of illness or injury the cost of insurance for those over 50 can be high. As a result, people in this age group are tempted to drop the irinsurance cover altogether just when the need is at its greatest.

If age 50 is looming, or recently passed by, it’s even more important to continue to protect both your income-earning ability and the financial security of any dependents. Here aresome solutions to consider:

• Review your level of insurance. As your investments and superannuation increase, you may be able to reduce your cover and still provide for your beneficiaries.
• Life and disability insurance can be arranged through most superannuation funds. Premiums can be lower and are paid from the superannuation balance thereby reducing strain on the household budget.
•  If you have accrued a lot of annual or sick leave, you might want toincrease the waiting period on your income protection insurance which can reduce your premiums. Depending on circumstances, this may allow you to retainan important benefit at a more affordable price.
• Pay in advance. Prepaying 12 months’ worth of income protection policy premiums before 30 June may allow you to bring forward a tax deduction for nextyear into the current year. This can potentially reduce your taxable income andthe tax you pay this financial year.