Retire Right 409 When to reduce life insurance, why price can't be the main driver, self-insuring, claims + more
Feb 25, 2026
Phil Thompson, a life insurance specialist at Skye Wealth focused on income protection, trauma and TPD. He discusses checking cover at reviews and when death cover becomes unnecessary. He explains balancing affordability with need, advisor roles at claim time, income protection versus TPD, self-insuring strategies, and how to compare policies and interpret claims data.
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Ask For A Professional Need And An Affordability Overlay
- Have your adviser show the professional recommended cover and then overlay an affordability test to decide if you should reduce levels.
- SkyWealth will recommend the need (eg $1m) but may advise a lower affordable level (eg $500k) and document why.
Parents Kept Cheap Death Cover As A Luxury
- Glenn describes his parents who kept cheap death cover into retirement even though there was no financial need.
- They kept it as an affordable luxury until they later cancelled when Dad stopped working.
Confirm Adviser Claims Support And Fees
- Expect an adviser or firm to help manage claims; ask who handles claims and whether there's a dedicated claims manager or potential fees.
- Phil says SkyWealth has a full-time claims manager and ordinarily doesn't charge clients for claim support.