June 2016 Edition

In this edition:

Welcome

SuperStream deadline looming - 1 July 2016

Preparing for the end of the financial year - 30 June

Key borrowing deadline extended for super

Life insurance myths

There are a few misconceptions about life insurance – like 'insurers don't pay claims', or 'insurance is too expensive'. Some people even think 'insurance isn't for me – I don't need it!'
 

Let's debunk those myths and get the facts. If you're making decisions about protecting you and your family, you'll want to base your future on fact – not fiction.

Myth 1 – Life insurance companies don't pay claims!

Insurers do pay claims. In fact life insurance companies pay out almost $10 million every working day in claims to customers. This figure would be even higher if Australians had adequate levels of cover.

Myth 2 – Insurance is too expensive

For most Australians insurance is very affordable. For example, a 35 year old male, non-smoking applying for $500,000 of Life Insurance cover, the monthly premium would be approximately $33. A 35 year old female, non-smoker applying for $500,000 of Life Insurance cover, the monthly premium would be approximately $25.

That's peace of mind for less than the cost of a coffee a day. You may find a budget planner a useful tool to help you see how you could free up the spare cash to ensure you have the right level of cover.

Myth 3 – I'm young and healthy – so insurance isn't for me

Life insurance can help people of all ages, and from all walks of life – it's not just for parents with kids and a mortgage. Even if you're young, single and healthy today, insurance is important to help you protect your lifestyle, your independence and cover your debts – in the event that you need to.

Insurance policies like Income Protection or Trauma can help you cover the bills, pay your rent or mortgage, cover medical expenses and continue to fund your lifestyle if you can't work because you get sick or injured. In fact getting insurance in place while you are young & healthy and locking in that cost, means it shouldn't become unaffordable as you get older, so can save you in the long run.

Myth 4 – Thanks, but I've got enough life insurance cover in my super fund

You probably don't have enough cover in your super fund. You may have some life insurance (death cover) through your super policy, but on average people with cover through super have less than half the level of cover they need.

Insurance through super also usually doesn't give you access to all insurance types – like Income Protection, Own occupation Total & Permanent Disability cover or Trauma cover.

Myth 5 – I'm covered by my private health insurance

Private health insurance provides valuable protection against the medical expenses associated with sickness and injury. But this is where it starts and stops: it's for medical expenses only. It won't cover your bills, debts or replace your lost income if you have to take an extended period off work due to illness or injury.

Private health insurance also may not cover the total cost of your treatment, or rehabilitation – potentially leaving you with a 'gap' that needs to be paid out of your own pocket.

To ensure you have no insurance gaps, a complete protection plan should encompass both private health insurance and life insurance.

Myth 6 – The government will look after me if I get sick

This would be nice but it's not really the case. Centrelink will pay a maximum Disability Support Pension of $794.80 per fortnight for singles or $1,198.20 per fortnight combined for couples. Would this cover your current lifestyle?

To discuss a plan to protect you and your family or to have a review done of your current personal insurance plan, give our Risk specialist, Debbie Adams a call.