Health goals for 2025? Ensure your policy fits your unique needs
January’s almost over, and while we’ve all had time to settle back into our routines, there’s still one New Year’s resolution that deserves a second look—your financial security. Whether you’ve started hitting the gym, eating healthier, or simply trying to spend less after the holiday blowout, one thing that often gets overlooked is how your health history impacts your life insurance.
If you’ve had medical conditions in the past, you may assume insurers will either reject you outright or charge a fortune. But the truth is, not all insurers assess health the same way—and that’s where working with a financial adviser can make a huge difference.
Your health history: Why it matters
Insurers base their premiums and coverage on risk assessments, which means your medical history directly influences how much you pay. However, the way each insurer assesses that risk isn’t always the same. For example:
A person with a history of high blood pressure might get an exclusion or higher premiums with one insurer but be approved at standard rates with another.
Smokers or individuals with chronic conditions like diabetes may face huge cost differences depending on the insurer’s underwriting process.
According to the Australian Prudential Regulation Authority (APRA), insurers apply varied risk assessments based on their underwriting models. This means one insurer may flag you as high-risk, while another could be more flexible, offering better rates.
How financial advisers help
1. Navigating exclusions and loadings
Exclusions (where a condition isn’t covered) and loadings (extra costs on premiums) can be tricky to understand. An adviser can work with different insurers to know the best terms based on your health history, meaning you could avoid unnecessary premium hikes.
“💡 Stat: A review by ASIC’s MoneySmart found that adviser-recommended policies are often better tailored than direct or group policies.”
2. Comparing policies to find the best fit
Every insurer has different rules when it comes to underwriting. Instead of assuming you’ll be stuck with one insurer’s high premiums, an adviser can compare multiple policies to find one that offers the best deal for your situation.
For example, an adviser may find an insurer that doesn’t charge extra for a mild pre-existing condition—something you wouldn’t know if you only checked one policy.
3. Making life insurance less confusing
Let’s be real—insurance jargon can be confusing. Policies come with fine print, technical terms, and pages of legalese. Advisers break it down for you, making sure you actually understand your coverage instead of just picking the first option that looks good.
“💡 Fact: Australian Securities and Investments Commission (ASIC) has noted that a large portion of Australians don’t fully understand their super-linked insurance policies, often assuming they cover more than they actually do.”
How your health impacts premiums (with real data!)
According to Skye Wealth’s industry data:
A 38-year-old non-smoker with no major health conditions can get a $1 million life insurance policy for as low as $750 annually through a retail insurer.
The same person, if diagnosed with mild asthma, could face a 50% premium loading, bumping the cost to $1,125 annually—but an adviser could help negotiate a better rate, saving over $187 per year.
Similarly, ASIC’s research found that many Australians overpay for insurance simply because they don’t shop around. [Source: ASIC MoneySmart Insurance Guide]
Why late January is the perfect time to review your policy
By now, most of us have recovered from holiday spending, settled back into work, and started thinking about 2025 goals. It’s the perfect time to reassess your insurance because:
✅ Your budget is clearer—you know where you stand financially after the holidays.
✅ You’re in the mindset for change—you’ve set goals, now it’s time to protect them.
✅ You’ll be ahead of the game—waiting until mid-year could mean higher premiums or delayed approvals.
How Skye Wealth can help
At Skye Wealth, we help Aussies find the right life insurance cover—tailored to their health, financial goals, and lifestyle.
Here’s how we make it easy for you:
âś… We compare policies to find the best insurer for your health profile.
âś… We negotiate on your behalf to secure better rates.
âś… We explain everything clearly, so you actually understand your policy.
👉 Ready to make 2025 the year of smart financial decisions? Reach out today and let’s review your insurance together.
References
Australian Prudential Regulation Authority (APRA) - Life Insurance Statistics https://www.apra.gov.au/quarterly-life-insurance-performance-statistics
Australian Securities and Investments Commission (ASIC) - MoneySmart Life Insurance Guide https://moneysmart.gov.au/how-life-insurance-works
Productivity Commission - Superannuation: Assessing Efficiency and Competitiveness https://www.pc.gov.au/inquiries/completed/superannuation
ASIC - Default Insurance in Superannuation (Report 675) https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-675-default-insurance-in-superannuation-member-value-for-money/
Skye Wealth Internal Data - Industry Trends and Case Studies