Product

Deductible Buydown

Product Description

A deductible buy-down is an insurance product that can be offered as an endorsement or a separate policy, providing businesses and individuals with the ability to manage their financial risk in the event of a loss. This type of policy reduces the deductible that the covered entity pays in the event of a claim, allowing clients to receive their expected compensation more quickly and efficiently. Typically, an additional premium or contribution is charged for the additional coverage. One of the most common deductible buy-down policies is for cyclones. This product is designed to provide peace of mind to clients in areas at risk of cyclones, enabling them to focus on rebuilding and recovery after a loss. Deductible buy-down policies are often underwritten by global insurance markets including Lloyd’s of London.

PRODUCT APPETITE

Minimum Premiums around AUD $25K++
Cyclone deductible buydowns more favioured
Other Perils (Case by Case)

BENEFITS

N

Lower out-of-pocket expenses: A deductible buydown policy can significantly reduce the amount a policyholder has to pay out-of-pocket in the event of a claim.

N

Certain Underwriter at Lloyd's

N

Peace of mind: By reducing the financial impact of a loss, a deductible buydown policy can provide policyholders with greater peace of mind and security

N

Deductible buydown policies can be tailored to meet the specific needs of the policyholder, allowing for more flexible coverage options.

CONCLUSION

A deductible buy-down policy can provide significant benefits to businesses and individuals who want to reduce their financial exposure in the event of a claim. By lowering the deductible, the policyholder can reduce their out-of-pocket expenses and have more financial security. The policy is easy to purchase, flexible, and can be tailored to meet the specific needs of the policyholder.