topinsurancebrokerage - Tumblr blog

[topinsurancebrokerage]

CAN LIFE INSURANCE COVER MORTGAGE REPAYMENTS

Imagine you've put in endless efforts to acquire your dream home. But what if an unexpected injury or illness prevents you from working? Would you be able to meet your mortgage payments?

According to a government report from the Australian Institute of Health and Welfare, accidents rank among the leading causes of death for individuals aged 1-44, while cancer remains a significant cause of death for those aged 45-74. Whether it's an accident or a battle with cancer, your focus should be on recovering your health, not worrying about finances or mortgage obligations. The report also highlights that over a third (35%) of Australian households have a mortgage, underscoring the importance of having a safety net in place to protect against unforeseen circumstances.

Further research reveals that each year, 30-37% of Australians aged 18-69 have taken out life insurance products like Income Protection to alleviate the stress of mortgage repayments.

HOW YOU CAN COVER YOUR MORTGAGE WITH INCOME PROTECTION

Income Protection insurance can serve as an alternative income source if you find yourself temporarily unable to work due to an illness or injury that has resulted in Total or Partial Disability. This could happen if, for example, you injure your back while doing household chores, experience a heart attack, or suffer a broken leg in an accident.

By receiving monthly payments, up to 70% of your income, for a specified period, you can maintain your household's financial stability and provide for your loved ones while you recover. The insurance provides monthly instalments that can help cover your mortgage, allowing you to concentrate on your recovery without the added stress of financial obligations.

HOW YOU CAN COVER YOUR MORTGAGE WITH TRAUMA (CRITICAL ILLNESS)

Trauma Insurance provides coverage in case you experience a severe illness or injury that requires extensive medical treatment to recover.

Similar to TPD, this type of insurance may provide you with a lump sum payment, which can be incredibly helpful during challenging times, where you can use the payout to cover your medical expenses or rehabilitation needs.

When you need time off work to focus on your recovery, it's crucial to prioritise getting back on your feet. This might involve reducing your work hours or taking an extended leave. With Trauma Insurance, you can have peace of mind knowing that you'll receive a lump sum payment that can be used for your mortgage repayments while you concentrate on your recovery.

HOW YOU CAN COVER YOUR MORTGAGE WITH TOTAL AND PERMANENT DISABILITY (TPD)

If you become permanently disabled due to an accident or illness and are unable to work, TPD insurance offers a lump sum payment to support you.

This payment can be used for medical treatments, rehabilitation, and even to pay off your mortgage. By receiving this lump sum, you can ease the financial burden that comes with losing your regular income and focus on prioritising your health.

Unexpected illnesses or injuries often result in time off work, and if this extends beyond sick leave, it can leave you and your family financially strained. Having the right financial support ensures you can focus on recovery and provide peace of mind for your family's future.

[topinsurancebrokerage]

THE EFFECT OF FINANCIAL WELLBEING ON YOUR HEALTH

Our financial health is a crucial part of our overall well-being, whether we realise it or not. Several studies have shown a clear connection between our welfare and our financial well-being.

For example, a study conducted in Australia in 2015 found that experiencing financial difficulties increases the risk of developing mental health issues over time. Similarly, a study from 2017 discovered that being unable to pay for housing expenses, like rent or mortgage, was a significant cause of psychological distress.

Despite understanding this relationship, discussing financial well-being can be complicated and difficult to understand fully.

FINANCIAL WELLBEING

Experts generally agree that financial well-being or satisfaction encompasses both objective and subjective financial factors. For example, having enough money to comfortably pay off your mortgage or loan is an objective factor, while having enough financial resources to live the lifestyle you enjoy is a subjective factor.

Financial well-being is influenced by both your current financial experiences, like your current situation, as well as your hopes and expectations for the future.

IMPACT ON PHYSICAL HEALTH

Our financial well-being is closely connected to our physical health. According to a global study conducted in 2020, more than 80 percent of participants stated that when their finances were in order, other aspects of their lives became much more manageable⁵. In the same study, 70 percent of respondents also recognized that having positive financial well-being, including practising good financial habits, had a positive impact on their overall physical health.

Considering this, it would be fair to consider our financial well-being as a foundation in our lives. If our financial situation starts to decline, it can affect other areas of our lives. Therefore, it is in our best interest to establish healthy financial habits to benefit our overall well-being.

THE INFLUENCE OF SPENDING HABITS ON FINANCIAL SATISFACTION

The way we use our money has a big impact on how we feel about our financial situation and how satisfied we are with it. It's not just about how we spend our money, but also about the debts we have and the amount of wealth we accumulate.

By improving our spending habits, we can reduce stress and anxiety while enhancing our overall financial well-being. One effective way to achieve financial security and improve well-being is by having a good savings plan. Research has shown that this to be true for people at all income levels.

5 TIPS TO ENHANCE YOUR FINANCIAL WELLBEING

Set a personal goal: Identify something you've wanted to do but couldn't due to financial constraints, such as joining a gym, taking an art class, or going on a holiday. Research the cost and treat it as a savings goal.

Review your budget: Take an hour to examine your spending over the past month. Assess your income and categorise your expenses, such as energy bills, insurance premiums, entertainment, groceries, and remaining funds.

Prioritise high-interest debt: Focus on reducing debts with the highest interest rates, such as personal loans, credit cards, and investment loans. Find ways to minimise these debts and save on interest.

Cut back on non-essential spending: Look for areas where you can trim discretionary expenses. Consider cancelling subscriptions, preparing lunch or coffee at home, or avoiding impulsive online shopping.

Save regularly towards your goal:Set aside small weekly amounts specifically dedicated to your personal financial goal. This consistent saving will help you make progress over time.

[topinsurancebrokerage]

5 QUESTIONS TO ASK A FINANCIAL ADVISER

Before you get life insurance, talk through these 5 questions with your financial adviser. That way you'll have a clear picture of what you're buying.

1. WHAT TYPES OF COVER DO I NEED?

Deciding what you need to be covered for is important. You can start by asking yourself (and your adviser, of course): Can I do without any of these types of insurance? Life cover - Pays a lump sum in the event of death or terminal illness – to cover living expenses for your dependents, pay off debts, funeral costs and fund palliative care if terminally ill so that your family remain looked after financially. Income Protection - Pays a monthly benefit to replace part of your income, if you are temporarily disabled and unable to work – to cover everyday living expenses and maintain your lifestyle, while you focus on getting back to work. If this cover meets your needs, you will need to determine how long you wait for your first payment (this is called the waiting period) and for how long you are paid (generally called the benefit period). Mortgage Repayment Relief Cover - Can provide a monthly benefit for up to 90 days to help you cover your monthly home loan repayments if you become Involuntarily Unemployed for more than 60 consecutive days. This cover can be added as a rider benefit in conjunction with your Life cover or TPD cover. Total and Permanent Disability (TPD) cover - Pays a lump sum should you become permanently disabled and unable to work – to cover out-of-pocket and ongoing medical expenses, home modifications and to take care of dependents if needed. Trauma cover - Pays a lump sum on the occurrence of certain types of serious illness or injuries (e.g. a heart attack or certain cancers) – to cover an extended break for you (and potentially your spouse) from work as you recover, as well as out-of-pocket medical expenses. This way, you and your loved ones can focus on recovery, not bills.

2. WHAT SHOULD I LOOK FOR (AND LOOK OUT FOR) IN A POLICY?

Buying life insurance isn’t difficult, but it does require some thought. So, don't ever feel pressured to make a quick decision. Take the time to consider your choice, and always make sure you:are aware of the injuries or illnesses covered by each type of insuranceunderstand how your medical history/occupation/pastimes will influence your coverunderstand the level and type of cover included – and how it will pay out in the event of a claimare aware of the ongoing cost of the cover. You could ask your adviser to provide you with quotes of likely premiums. Ask for this so you can plan for how you will pay for your insurance in the years to come beware of shortcuts – not having to provide your health history to get covered can mean that the insurance product may have more exclusions and become more expensive in the long rununderstand your medical history so you can disclose everything you need to your financial adviser. That way you’ll make sure to get the cover that’s right for youread the relevant Product Disclosure Statement.

3. WHAT’S THE BEST WAY TO PAY – STEPPED OR LEVEL PREMIUMS?

Insurance premiums will generally increase over time – simply because health risks increase with age. That’s why most insurers offer two common ways of paying for, and managing, the costs of your cover over time: Stepped premiums: when the cost of your cover is recalculated each year based on your age at your policy anniversary. Generally, this means your premium will increase each year as you get older. Level premiums: when your premium is ‘averaged out’ over a number of years to help prevent large increases over time. This means your cover will generally be more expensive than stepped premiums when you are younger but will be lower in later years.

Note that regardless of which premium option you select, premiums are generally not guaranteed, and increases can occur.

4. HOW LONG DO I NEED TO BE PROTECTED FOR?

We don’t know what the future will bring. That’s why it helps to plan ahead. You should begin the insurance relationship with an expectation that your cover needs to be continually adapted to suit your needs. The rule of thumb is that your need for financial protection usually decreases over time. For example, if you pay off your mortgage, reduce your debts, or no longer have dependents to look after financially, you may want to review your cover. You should keep your policy as long as you require financial protection for your needs. If you no longer have debt or have enough financial resources to maintain your livelihood should something happen to you, then you may no longer need as much cover. Lower cover usually means lower premiums, so it’s definitely worth reviewing your policy every 12-18 months.

5. WHAT DEFINES A TRUSTWORTHY INSURER?

Before making your final choice, be sure to consider:the reputation and longevity of the insurerif the questions the insurer will ask you about your health and medical history are in plain language, so that it’s easier for you to complete the application with confidence. This is important because you won’t always know the medical term for a condition you might have had (e.g. you might know you had a case of tennis elbow in the past, but you may not know that it’s medically referred to as ‘epicondylitis’)the proportion of claims an insurer pays and how long they take to make claims decisionsthe extra services and support provided at time of claim (including sensitivity to mental health challenges arising from claims, added services for rehabilitation, tele-claims availability, help in filling out the forms)the insurer’s claims handling process (including time to payment, any immediate release of funds)any information on the insurer’s fair and transparent claims decision making processthe breadth and adaptability of the insurer’s product suite.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

[topinsurancebrokerage]

TRAUMA INSURANCE EXPLAINED

Critical Illness or Trauma cover pays out a lump sum cash in case you become seriously ill or suffer a major injury. This can help you and your family cover medical costs, access rehabilitation, make required modifications to your home and pay for other expenses giving you financial freedom during a critical time.

Trauma insurance guarantees that a medical emergency does not turn into a financial distress.

WHAT DOES TARUMA INSURANCE COVER?

Trauma, or recovery insurance, covers you for specified serious injuries and illnesses that require extensice medical treatment. These illnesses and injuries include sever burns, major head trauma injuries, and conditions such as cancer, heart attacks, strokes and transplants. It is important to keep in mind that conditions covered under trauma vary depending on the insurance providers, most importantly, the severity of the condition is an important criteria. You can find the details of these criteria in the product disclosure statement of every insurance provider.

HOW MUCH TRAUMA COVER DO I NEED?

When deciding out level of cover for trauma insurance, it is important to consider a few things. Firstly, think about how much money your family would need to cope with daily expenses if you were unable to go to work. Secondly, consider the costs of paying for your medical expenses and recovery on top of your existing financial obligations. It is also important to keep in mind any ongoing or future investments and debts you may have - these could be mortgage repayments, car loans or educational costs. You may also want to look at your contingency plans, savings and any assets you may easily be able to sell, e.g. shares, in case of a financial emergency. There is no one-size-fits-all policy when taking out insurance, the level of cover will depend on your financial situation and personal needs.

HOW WILL I PAY FOR MY TRAUMA COVER?

There are two different options to pay for your insurance premiums - level and stepped. Stepped premiums increase with your age every year, where as level premiums are calculated based on your age at time of the policy application and remain the same until the age of 65. Trauma cover can only be paid out-of-pocket since the change in law in 2014 no longer allows you to fund your trauma via your superannuation.

HOW IS A TRAUMA CLAIM PAID AND WHERE CAN I USE THE PAYOUT?

Trauma benefit is paid as a lump sum amount which can give you financial freedom at the time of a medical crisis. You can use the payout to cover a number of expenses such as:a substitute for your income to cover daily expenses if you're unable to return to work,to cover medical expenses that are not paid for by your health insurance,to make required adjustments to your lifestyle a result of the illness or injury,to repay any outstanding debts to reduce the financial stress on your family.

WHAT ELSE DO I NEED TO KNOW ABOUT TRAUMA COVER?

In the event of an illness or injury covered under your trauma insurance, it is important that you keep your medical records handy. This will make the process of receiving the benefit quicker as your insurance company will request these documents to process your claim. It is difficult enough to deal with a medical emergency without the added strain of financial distress. Understanding the meaning of your trauma cover and how it works can help you focus on your recovery and loved ones when times are rough.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

[topinsurancebrokerage]

MANAGING YOUR MONEY | INSIGHTS FOR BUSINESS OWNERS

Self-employment brings numerous benefits, including the freedom to control your schedule and pursue fulfilling work. However, it also demands responsibility, as the ultimate accountability lies with you.

Alex Luck, Director and Financial Adviser at Everest Private Wealth, generously shares his expert tips for effectively managing your finances in the self-employed domain. Discover valuable advice on effectively managing your finances as a self-employed individual, covering crucial areas such as optimising your business structure and ensuring a healthy cash flow.

ESTABLISH THE APPROPRIATE BUSINESS STRUCTURE

When people start working for themselves, they often focus more on growing their business than on its structure. They may think that they can deal with the details later on. However, it's crucial to set up the right structure from the beginning or as soon as possible if you're already self-employed.

Some individuals may begin as sole traders or in partnerships but later realise that operating as a company would be more suitable. Changing the business structure can be expensive, so it's wise to consult with an accountant or financial adviser early on.

The appropriate structure for a self-employed person depends on their specific circumstances. For instance, a lawn mowing business might work well as a sole trader, but a technology start-up with plans for significant growth and employment will require a more complex structure.

UNDERSTAND YOUR TAX OBLIGATIONS

One common mistake in self-employment is spending all the money you earn without considering taxes. Besides income tax, there are other taxes like GST and company tax that may need to be paid.

To avoid this problem, you can hire a bookkeeper or use software like Xero to keep track of your tax obligations regularly. Additionally, it's important to take advantage of any government support available to you.

CASH FLOW MANAGEMENT

It's important to have money available in case of emergencies or unexpected opportunities. "Don't let your business run out of funds," advises Luck.

Having a healthy cash flow is crucial. If you keep taking money out of your business without reinvesting in it, and something unexpected happens, you could find yourself in a tough situation. You might have to sell something important that you need.

As a general guideline, it's a good idea to save enough money to cover at least six months of expenses for yourself and your business, just to be prepared.

BE MINDFUL OF YOUR EXPENSES

When it comes to investing in facilities and equipment for your business, it's wise to begin with modest choices.

Instead of splurging on expensive state-of-the-art desktop computers, consider if a $1,000 laptop can fulfil your requirements just as effectively. Similarly, questioning the necessity of a lavish office space when working from home could suffice.

Rather than getting caught up in grand visions of a booming global enterprise, prioritise spending only on what you currently need to carry out your work. Additionally, it's crucial to maintain accurate and detailed records of your expenses.

INVEST IN INSURANCE

As a self-employed person, it's important to have different types of insurance like public liability and public indemnity. These insurances can provide you with protection in case of legal issues that may arise.

Additionally, it's crucial to consider how you would manage financially if you couldn't work for several months or longer due to unexpected situations like illness or accidents.

Having income protection insurance can help you cover your business and personal expenses during the period when you are unable to work. It gives you the necessary time to recover and get back on track.

It's essential to think about the impact on your business if you are not able to be present. In many cases, both your business and your income could suffer quickly if you are not prepared for such situations.

[topinsurancebrokerage]

DOES BUYING A HOUSE REQUIRE LIFE INSURANCE?

Buying a house is one of the most exciting things you do in your life. As it is most likely the biggest investment you make in a lifetime, it can be quite thrilling.

Buying a house is one of the most exciting things you do in your life. As it is most likely the biggest investment you make in a lifetime, it can be quite thrilling.

IS LIFE INSURANCE NEEDED WHEN BUYING A HOUSE?

Investing in property is a crucial financial responsiblity and an ongoing commitment. Even though it is not a requirement when buying a house, life insurance plays a significant role in securing your family's future. According to the Australian Bureau of Statistics, the average mortgage repayments in Sydney are calculated at $2,167 per month, whereas monthly repyments in Melbourne can be $1,820. It is important that in the event of an accident or illness that prevents you from going to work, you have a policy in place that can assist you with your debts and daily living expenses. Income Protection provides the monthly payments of upto 75% of your monthly income that can cover such expenses. A life cover would provide your family with a lump sum benefit in case you pass away, allowing them to take care of financial responsibilities without the added stress in their time of grief. Having a life insurance policy can give you and your family the peace of mind that if the unexpected occurs, you will have the monetary assistance to cover your house loans and other costs associated with owning property.

WHEN IS THE BEST TIME TO GET AN INSURANCE COVER WHEN MOVING INTO A NEW HOME?

The search for a new home is a busy time and can be emotionally taxing. It may seem tempting to delay the added work of finding the right insurance policy until after you're settled into your new home and all arrangements have been finalised. However, even though you may not have moved into your new house yet, you are still financially responsible for it and must think about financial protection. If you already have an insurance policy, this can be an important time to review your policy and make sure you are covered for the extra debt you're taking on. It is also worthwhile to look at what you're covered for, the benefit period, waiting period and the sum insured under your cover. Your financial adviser can assist you in reviewing and updating your existing insurance, or help you find the right one to cover your needs. If you don't have a financial adviser, click here to get in touch with us today.

IS LIFE INSURANCE THE SAME AS LENDERS' MORTGAGE INSURANCE?

Have you heard of lenders' mortgage insurance (LMI) and wondered if it is any different from life insurance? Yes, it is. Where LMI protects lenders, life isnurance protects the individuals insured under the policy. When taking out a loan, generally people must pay a deposit of 20% of the house's purchase price in order to avoid paying the LMI. If your deposit is less than 20% or you are not qualified for the First Home Loan Deposit Scheme by the federal government, your LMI payments can be soemwhere between $2,500 to $10,000. Unlike life insurance, LMI is designed to protect the lender and not you and your family. So, if you default on your loan or the unpaid value of the mortgage does not equal the selling price of your property, your lender can make a claim for the LMI policy to cover the shortfall. LMI and life insurance are two very different insurances designed for two very different purposes, and it's not uncommon to take out both.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

[topinsurancebrokerage]

TYPES OF INSURANCES YOU MUST KNOW ABOUT

There's more than one way to protect yourself with life insurance. Here we explore the 4 main types of cover, how they can help and how much cover you may need.

LIFE COVER

Pays a lump sum to your beneficiaries or estate in the event of your death or terminal illness. Allows you to pay off any existing debts, cover living expenses for your dependents, or provide the financial support you’d like to give them in your absence. It may be the simplest form of life insurance, but life cover is undoubtedly one of the most important as it helps you provide for your debts and dependents. When you’re looking at life cover, there are 3 key things you need to understand so you know what you’re covered for, and what that means at claim time:How much you’re covered forHow your policy will be paid outHow your cover is structured – linked or stand-alone.

Did you know? When considering how much to cover to apply for, it’s worth considering how much to replace your income, support your family, educate your children etc.? You can adjust this figure over time as your debts reduce or your children become less financially dependent. That way you’re not paying for cover you no longer need. There's more than one way to protect yourself with life insurance. We will discuss the 4 main types of cover today, how they can help and how much you may need.

TOTAL AND PERMANENT DISABILITY (TPD) COVER

Pays you a lump sum if an illness or injury leaves you permanently disabled and unable to work, or perform normal domestic duties if you work in a home-maker role. Allows you to cover out-of-pocket medical expenses, home or transport modifications, support your ongoing financial needs and take care of your dependents. A permanent disability will change what the rest of your life looks like. It can also make life much more expensive in terms of medical care and home modifications – which is why Total and Permanent Disability (TPD) cover is so valuable. When you’re looking at TPD cover, there are 3 key things you need to understand so you know what you’re covered for, and what that means at claim time:How your claim will be assessed – Any or own occupationHow long your claim will take – Maximum medical improvementHow your cover is structured – Stand-alone or linked.

Did you know? TPD cover may be purchased as a stand-alone policy or as a ‘linked policy’ that’s connected to life cover or trauma cover.

TRAUMA COVER

Pays you a lump sum in the event of certain types of serious illness or injury. Allows you to cover the cost of out-of-pocket medical expenses and financially support your lifestyle and family during an extended break for you (and potentially your spouse) from work as you recover. Trauma cover is all about supporting your recovery from a serious illness – helping you afford the treatment of your choice and allowing you to make necessary changes to your lifestyle. When you’re looking at trauma cover, there are 3 key things you need to understand so you know what you’re covered for, and what that means at claim time:What you can claim for – Trauma definitionsHow your cover is structured – Stand-alone or linkedMaking multiple claims – Trauma reinstatement

Did you know? A little-known benefit of trauma cover is that you may be able to make multiple claims in your lifetime.

INCOME PROTECTION

Pays you a monthly benefit to replace part of your income if you are temporarily unable to work as a result of serious illness or injury. Allows you to cover everyday living expenses and maintain the lifestyle you’ve built for yourself and your loved ones. There's not much you can do without an income. In monetary terms, your ability to earn an income is your biggest asset by far - which is why income protection is so important. When you’re protecting your biggest asset, there are 3 things you need to understand so you know what you’re covered for, and what that means at claim time:How much you’re covered for – the sum insuredHow long you need to wait to be eligible to make a claim – the waiting periodHow long your claim will be paid for – the benefit period.

Did you know?

One great feature of income protection is that premiums are generally tax-deductible, which can make it significantly more cost-effective to get the cover you need. You may also be able to hold an income protection policy inside super, meaning you can use tax-effective super contributions to pay your premiums, however, within a superannuation environment policy feature are generally more restricted.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

[topinsurancebrokerage]

IMPORTANT THINGS TO KNOW ABOUT LIFE INSURANCE

Life insurance is an important tool to keep your financial plan on track against life’s mishaps. It comes in many different forms such as life cover, total and permanent disability cover, critical illness or trauma cover, and income protection cover. Each can play an important role protecting you and your loved ones’ lives.

Yet many people remain unsure of why they need life insurance or whether it will be there when they really need it. The life insurance industry paid out $10 billion in claims last year according to industry group, the Financial Services Council. Here are five reasons why it’s worth making sure you’re covered in the event of a disaster.

1. PEOPLE MAKING LIFE INSURANCE CLAIMS ARE YOUNGER THAN YOU THINK

Australians enjoy some of the longest lifespans in the world. Men and women aged 65 in 2014-2016 can expect to live to 84.6 years of age and 87.3 years of age respectively, according to the Australian Bureau of Statistics. However, the average claim age for life insurance is only 66 years for men and 63 years for women, according to an analysis of ClearView data. It shows the importance of insuring against the unexpected, whether a terminal illness or death due to accident or illness, so that you can maintain your standard of living, including paying for medical treatment, or look after loved ones if you’re not there.

2. INSURANCE CLAIMS INVOLVING ADVISERS ARE MORE LIKELY TO BE ACCEPTED

A comprehensive 2016 life insurance survey by the corporate regulator, Australian Securities and Investments Commission (ASIC), found insurance claims were declined in just 7 per cent of claims when a financial adviser was involved. Life insurance claims through a superannuation fund (known as group insurance) were declined in 8 per cent of cases while direct life insurance (sold through the Internet or a call centre), were declined in 12 per cent of cases. However, one insurer via direct sales declined 29 per cent of claims while one insurer via a super fund declined 23 per cent of claims, suggesting a skilled financial adviser can be valuable to ensure protection is there when you or your family needs it most. An adviser can ensure you have the right type of cover provided by a reputable insurer and then help you navigate the process if you need to make a claim.

3. MOST LIFE INSURANCE CLAIMS ARE PROCESSED QUICKLY

More than 130,000 insurance claims were processed in 2017- 18 by the major insurers that have subscribed to the new Life Insurance Code of Practice. The industry reported that 89 per cent of income-related insurance claims were decided within two months while 92 per cent of non-income-related claims were decided within six months.

4. NEW LEGISLATION MAY HAVE CLOSED YOUR INSURANCE IF IT’S ATTACHED TO SUPER

Many superannuation funds automatically include life insurance. Unfortunately, many people are unaware they have this insurance or are unlikely to ever use it – the result is their retirement savings are slowly eaten away by premiums. The Government’s Protecting Your Super package aims to stop this from happening. From 1 July 2019, super accounts with insurance that were inactive for at least 16 months have had their insurance cancelled. An opt-in choice to continue with your insurance was, however, available. If you have any concerns, contact your financial adviser who can also ensure you have the most appropriate life insurance.

5. LIFE INSURERS WANT A REGULATORY OVERHAUL SO THEY CAN OFFER REHABILITATION BENEFITS

Employment provides people with the money they need to support their lifestyle. However, those who are incapacitated and unable to work lose more than an income: it can also dent their happiness and self-confidence. Life insurers are lobbying for a change to legislation which would allow them to fund treatment for Australians at risk of long-term incapacity where they are not covered by private health insurance or stuck on public healthcare waiting lists. Research commissioned by life insurance representative group, the Financial Services Council, suggests such reforms could provide benefits for up to 10,118 people per year while 87 people could be prevented from becoming totally and permanently disabled. Early intervention by life insurers could also cut return to work times from 18 to 13 weeks.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

[topinsurancebrokerage]

DOES BUYING A HOUSE REQUIRE LIFE INSURANCE?

Buying a house is one of the most exciting things you do in your life. As it is most likely the biggest investment you make in a lifetime, it can be quite thrilling.

Buying a house is one of the most exciting things you do in your life. As it is most likely the biggest investment you make in a lifetime, it can be quite thrilling.

IS LIFE INSURANCE NEEDED WHEN BUYING A HOUSE?

Investing in property is a crucial financial responsiblity and an ongoing commitment. Even though it is not a requirement when buying a house, life insurance plays a significant role in securing your family's future. According to the Australian Bureau of Statistics, the average mortgage repayments in Sydney are calculated at $2,167 per month, whereas monthly repyments in Melbourne can be $1,820. It is important that in the event of an accident or illness that prevents you from going to work, you have a policy in place that can assist you with your debts and daily living expenses. Income Protection provides the monthly payments of upto 75% of your monthly income that can cover such expenses. A life cover would provide your family with a lump sum benefit in case you pass away, allowing them to take care of financial responsibilities without the added stress in their time of grief. Having a life insurance policy can give you and your family the peace of mind that if the unexpected occurs, you will have the monetary assistance to cover your house loans and other costs associated with owning property.

WHEN IS THE BEST TIME TO GET AN INSURANCE COVER WHEN MOVING INTO A NEW HOME?

The search for a new home is a busy time and can be emotionally taxing. It may seem tempting to delay the added work of finding the right insurance policy until after you're settled into your new home and all arrangements have been finalised. However, even though you may not have moved into your new house yet, you are still financially responsible for it and must think about financial protection. If you already have an insurance policy, this can be an important time to review your policy and make sure you are covered for the extra debt you're taking on. It is also worthwhile to look at what you're covered for, the benefit period, waiting period and the sum insured under your cover. Your financial adviser can assist you in reviewing and updating your existing insurance, or help you find the right one to cover your needs. If you don't have a financial adviser, click here to get in touch with us today.

IS LIFE INSURANCE THE SAME AS LENDERS' MORTGAGE INSURANCE?

Have you heard of lenders' mortgage insurance (LMI) and wondered if it is any different from life insurance? Yes, it is. Where LMI protects lenders, life isnurance protects the individuals insured under the policy. When taking out a loan, generally people must pay a deposit of 20% of the house's purchase price in order to avoid paying the LMI. If your deposit is less than 20% or you are not qualified for the First Home Loan Deposit Scheme by the federal government, your LMI payments can be soemwhere between $2,500 to $10,000. Unlike life insurance, LMI is designed to protect the lender and not you and your family. So, if you default on your loan or the unpaid value of the mortgage does not equal the selling price of your property, your lender can make a claim for the LMI policy to cover the shortfall. LMI and life insurance are two very different insurances designed for two very different purposes, and it's not uncommon to take out both.

WANT TO KNOW MORE?

If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.