Tag Archives: Insurance

6 tips to having the right level of insurance cover

By Robert Wright /June 26,2017/

When life is busy it can be easy to overlook the important things and take your own well-being for granted. But it pays to stop and consider how much your loved ones depend on you. If something were to happen to you, money is the last thing you or your family would want to worry about.

If your income stops, can insurance help?

If things are running smoothly it’s hard to imagine life being different. But what if you became unwell, and because you could no longer work your income suddenly stopped?

Like most people, if you were unable to go to work you’d probably be relieved to continue receiving most of your income. Income protection insurance offers a financial safety net so that if you become sick or injured you could continue receiving up to 75% of your income, if certain conditions are met.

And if you became terminally ill or died, life insurance may provide a lump-sum payment. This may help to pay off any debts or leave a nest egg for your loved ones.

Trauma cover could also provide a lump sum if you’re diagnosed with a listed medical condition. The benefit is you could avoid financial stress and focus on getting life back on track throughout your recovery.

Our tips to make sure your cover is right for you

1. Schedule a health check in the morning

If you need to undergo a medical exam, arrange to do so first thing in the morning. Changes to things like blood pressure and sugar levels occur during the day and can give a health assessor an inaccurate or less favourable reading about your state of health.

2. Act now

It generally costs more to buy insurance when you’re older. Health exams can be more demanding too. So it can be a good idea to put your cover in place now.

3. Pay less by getting healthy

If you smoke you’ll generally pay more for your insurance cover because the risks to your health are considered higher. Try to cut out cigarettes and you’ll save twice: your premiums will be lower and you’ll also keep the money you’d normally spend on cigarettes!

4. Consider your beneficiaries

An important feature in any life insurance policy is the beneficiaries’ clause, which determines how money will be passed on to your spouse and children. There may be tax benefits with this feature as well – you should consultant a tax adviser or accountant for more information.

5. Keep up-to-date

Be sure to review your cover if something happens in your life. Your policy may need to be updated if:

• you get married, move in with your partner or have a child
• someone in your family dies, gets married or divorced
• your income or job changes
• the amount of debt you’re responsible for changes, such as when you take out a loan or credit card.

6. Be sure your cover fits your needs

At times, insurance providers may add new features or discounts to a policy. By regularly reviewing your policy and considering how your circumstances may have changed, you can make the most of any extras. Ask whether your policy will accommodate a higher level of cover if needed down the track. And ask about family discount benefits too.

Want to know more?

To learn more about protecting your future and the different types of insurance available please contact us.

 

Source: AMP

Why insurance is important – real benefits for you and your family

By Robert Wright /March 02,2017/

Insurance is all about protecting what you have now and what you need to have in the event of the unexpected.

As you travel through life, the protection you need is likely to change.  The key to selecting the right insurance is understanding your present needs and making sure you have both the right sort and level of cover.

Being over-insured is a waste of money, but it is also a financial risk to have too little insurance in place. With this in mind, let’s look at the types of insurance that may be particularly relevant to each life stage.

Just starting out

If you’re just starting out in your career, you probably recognise that it is important to insure valuable assets such as your car. Your most valuable asset however, is your ability to earn an income over your lifetime. As your income starts to rise, or you take on more debt, such as a home loan, it becomes more critical to have the right levels of income protection insurance and possibly life cover in place.

The family years

Once you have a partner, and potentially begin a family, life and TPD insurance becomes especially important. It is essential for your family to be able to survive financially if you were to pass away unexpectedly, or become permanently disabled. Even if only one of you is working, it’s important for both parents to have appropriate life and TPD cover in place – not just the major bread winner.

While raising a family, our financial commitments are often at their highest. This makes income protection insurance particularly important.

As you age, the likelihood of experiencing medical conditions such as heart attack increases, making living insurance worthwhile. Living insurance will provide an additional lump sum to assist with medical and other costs in the event of serious illness or injury.

Empty nest

More Australians are choosing to work until much later in life, and if that sounds like you, income protection insurance remains relevant until you hang up your work boots.  While your children may have grown up and be establishing lives of their own, life insurance can continue to play an important role.

Five reasons why insurance matters

Why is insurance important? Let’s look at five key reasons.

1. Protection for you and your family

Your family depend on your financial support to enjoy a decent standard of living, which is why insurance is especially important once you start a family. It means the people who matter most in your life may be protected from financial hardship if the unexpected happens.

2. Reduce stress during difficult times

None of us know what lies around the corner. Unforeseen tragedies such as illness, injury or permanent disability, even death – can leave you and your family facing tremendous emotional stress, and even grief. With insurance in place, you or your family’s financial stress will be reduced, and you can focus on recovery and rebuilding your lives.

3. To enjoy financial security

No matter what your financial position is today, an unexpected event can see it all unravel very quickly. Insurance offers a payout so that if there is an unforeseen event you and your family can hopefully continue to move forward.

4. Peace of mind

No amount of money can replace your health and wellbeing – or the role you play in your family. But you can at least have peace of mind knowing that if anything happened to you, your family’s financial security is assisted by insurance.

5. A legacy to leave behind

A lump sum death benefit can secure the financial future for your children and protect their standard of living.

Insurance is important for your financial wellbeing so it’s worth speaking to an expert who can recommend the insurance solutions that are right for you and your family.  To explore your options, please contact us.

 

 

Source: BT

The impact of the death of a parent on children

By Robert Wright /October 06,2016/

Findings from a recent study[1] explored the impact the death of a parent has on children and the surviving parent, comparing the results between insured and uninsured households.

What impact does the death of a parent have on children?

The study found that the death of a parent can have wide-reaching impacts on children. For example, among the children in the study:

• 67% took on more household tasks and chores
• 43% reduced their involvement in social activities
• 41% stated a worsening in academic performance.

Many children were forced to grow up faster than they would have otherwise, and unfortunately this often comes at the expense of their social lives and their studies.

It’s worth noting that the parents surveyed often underestimated the impacts on their children, so the changes are not always obvious.

The study also highlighted some worrying trends with children’s mental health, with 29% of the children studied experiencing anxiety/panic disorders, depression or abusing drugs and alcohol.

How does having life insurance help?

Among these upsetting findings, it’s heartening to see that life insurance had a significant impact in helping families cope with the loss of a parent.

The most obvious impact came from an increased level of financial stability for those families who had cover in place.

Among families without insurance, the percentage who rated their finances as ‘struggling’ jumped from 14% to 47% after the death of a parent. By contrast, among families with insurance, the percentage of families who rated their finances as ‘adequate’ increased from 44% to 56% after the death of a parent.

This financial stability had a flow-on effect to other aspects of the family’s situation. Families with life insurance were more likely to stay in the family home, increase the amount of time they spend together, and maintain childhood friendships than those without insurance.

Keeping your options open

When it’s something as tragic as the death of a parent, it’s always nice to have the financial freedom to make the best choices for yourself and your family. That freedom is why life insurance is such an important and valuable asset.

[1] ’Impact of parent’s death on the family’ – Research conducted by Ipsos, prepared for ANZ Global Wealth, June 2015

Source: OnePath

Common Myths about Life Insurance

By Robert Wright /March 08,2016/

Most of us like to think that insurance is a set and forget proposition that we pay for without too much consideration.  However no one can predict the future. Illness or injury can strike at any time with potentially devastating consequences. Australian Bureau of Statistics data shows that medical illnesses are the leading causes of deaths in Australia[1]. Topping the list are several types of cancer, Ischemic heart disease, stroke, Alzheimer’s disease and dementia. The health risks are clear yet many Australians are manifestly ill-prepared for these life events.

According to Rice Warner’s ‘Underinsurance in Australia’ report[2], an average Australian couple around 40 years of age with children would require life insurance cover of approximately 10 times their annual earnings to repay debt and maintain their current living standards. However very few Australians have anywhere close to this level of insurance cover.

It’s common for people to have an “it won’t happen to me” mentality, but unfortunately the facts speak for themselves. Taking some time to understand more about life insurance is worth its weight in gold as it could protect the financial stability of those you care for if you can no longer work or pass away.

Here we look at some common myths about life insurance.

Myth One: ‘I’m young and healthy. I don’t need life insurance.’

It’s easy to think you don’t need life insurance when you’re young, fit and healthy. But life has a funny way of ‘just happening,’ and if you are about to experience a significant life event such as getting married, having a baby, or buying your first home, you need to consider what could happen if the unexpected were to occur. For instance; if you were left without an income, how would you and your dependents cope financially?

It’s also important to consider what your health may be like in the future. Although you may be young and healthy now, unfortunately deteriorating health is a natural part of life. It’s a good idea to consider taking out life insurance early on in life, when you’re less likely to have any pre-existing medical conditions, as these could make you ineligible for life insurance cover or attract higher premiums when you’re older.

 

Myth Two: ‘I’m single and I don’t have any dependents. I don’t need life insurance.’

According to the Australian Institute of Family Studies[3], the number of Australians living alone is as high as it has ever been with one in four people living in a single person household. And that’s been the case for more than a decade now. While many of us are happy living alone, many of us also have financial responsibilities that aren’t linked to having a partner or a child.

 

Myth Three: ‘Life insurance is only worth it if you pass away.’

One main objective of life insurance is to provide financial security for your loved ones should you pass away. However life insurance also provides protection should you become critically ill, injured in an accident, or permanently disabled.   Should this occur and you are no longer able to work, life insurance can help you to pay for out-of-pocket expenses such as the cost of medical treatment and other household bills.

 

Myth Four: ‘My superannuation fund includes life insurance cover. I don’t need any more.’

Many super funds offer some form of life insurance for members. However it’s often just a very basic level of cover and may not take into account your individual circumstances nor the amount of cover you would really need to maintain your standard of living if you could no longer work.  This is where professional advice can help.  Your financial adviser can tailor an insurance plan that’s designed specifically for you.  This includes a review of any existing insurance policies you may have, an analysis of your financial obligations, and the level of financial support you want for your dependents; both now and into the future.

 

Myth Five: ‘I have private health cover. I don’t need life insurance.’

There’s no denying that private health cover can be immensely beneficial if you require urgent or costly medical treatment. However in many cases it won’t provide cover for ongoing post-operative costs such as any rehabilitation, or those financial obligations that continue while you’re unable to work, such as household bills and your mortgage repayments.  Personal insurance can help by covering these additional expenses, and help protect your family’s financial situation should you be unable to return to work.

Reviewing your insurance arrangements with your financial adviser makes good sense.  Even if it simply confirms that your existing insurance cover is fine. To find out more, contact your adviser.

Source: Capstone

[1] Australian Bureau of Statistics, 2009, Causes of death, released May 2011

[2] Rice Warner ‘Underinsurance in Australia’ report (July 2014)

[3] Australian Family Trends No. 6. Australian Institute of Family Studies, March 2015.