Wednesday, 23 January 2013 04:21

Income Protection for Women

 

Some Insurance companies offer income protection for those working 20 hours per week and above. And with women making up nearly half of the entire Australian workforce, and over half of those being part-time, this is great news.

In 2011, women made up 45 per cent of the Australian workforce with 80 per cent aged 20 to 54. Over half (52 per cent) of those work part-time, usually returning to work after having children or time spent studying.

Today there is an increasing number of dual income households, due to the high living costs associated with servicing debt, meeting childcare fees and maintaining a reasonable lifestyle. In many cases, both partners do not have income protection, with females often foregoing this cover, due to affordability issues.

In such cases, there are various options on offer to help make income protection more affordable, such as:
• waiver of premium when on maternity leave
• options for longer waiting period
• shorter benefit options
• essential Cover - accident-only income protection option - an inexpensive way to insure your income.

Part-time female workers are a major part of Australian society and income protection insurance should be a key part of their financial plan, just as it is for a household’s full-time breadwinner.

This material has been provided for general information purposes and must not be construed as investment advice. This material has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional insurance advice tailored to their specific circumstances prior to making any insurance decisions and should read the relevant Product Disclosure Statement.

Important information: This information was prepared by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA).

 

Published in Life Insurance

Consumers can expect double digit percentage increases in their Life Insurance and Income Protection premiums over the next few years.

Insurance company TAL recently said in a statement to the media that the last few years has seen a much higher incidence of claims which has put severe pressure on insurance company profitability.  This can be seen in the charts below which were sourced from actuaries Rice Warner.

Insurance Premiums likely to rise

It was also revealed recently that the Media Super fund had increased insurance premiums by 45%.

Life Insurance and Income Protection is a highly competitive industry and we recommend that given the likelihood of premium increases, consumers would be well advised to seek help from an insurance specialist (offered by GEM Capital).  An insurance specialist can access insurance policies from many different insurance companies to obtain the best possible outcome for each individual.

This material has been provided for general information purposes and must not be construed as investment advice. This material has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional investment advice tailored to their specific circumstances prior to making any investment decisions and should read the relevant Product Disclosure Statement.

 

Published in Life Insurance
Wednesday, 28 November 2012 03:27

Life Insurance for young families

Young family having a baby

New priorities and responsibilities

As a 'young family' you have a natural instinct to care, nurture and protect those you are now responsible for. It isn’t just about you anymore, it is about your responsibilities and knowing that your family is secure in your care. You are thinking about the things you are currently providing but, more importantly, you are already planning for the future-such as education for your children; a safe and comfortable home; and family holidays and recreational activities.

As with all life stages, you like to think that you will always be there for your family, and be able to work and provide a steady income. There is nothing stronger or more compelling than the natural instinct of a parent wanting to ‎protect their family.

Why you need life insurance to protect your family

No one plans to get sick, injured or to die unexpectedly and we all have a tendency to think that it won’t happen to us. ‘I’m too young to get cancer or have a heart attack’ and ‘I’m the safest driver on the road,’ are common misconceptions.

The first step in addressing your family’s financial security is to become aware of the risks you and your family are exposed to. One of the greatest risks you may face in your life is losing your ability to earn an income and to provide a secure and comfortable lifestyle and future for your family. Despite this being the case, many people don’t insure themselves for this risk, whilst almost everyone insures their car!

It’s worth taking a moment to consider what would happen if an extended illness or injury or premature death stopped your ability to work and provide an income. This could have a devastating impact to your family’s financial security and long-term lifestyle choices. It’s hard to imagine losing your health and your ability to go to work or even losing your life, but it is easy to imagine the practical impact the lack of an income would have.

The perfect time to put in place a life insurance plan

It is so important to consider your life insurance needs while you are relatively young and healthy, before you have any health scares and while there are still a range of options available to you. Too many people only realise the need for life insurance once they begin to experience health problems and it is often too late.

Published in Investment Advice
Wednesday, 03 October 2012 02:22

To My Dear Dead Husband Tom........

To My Dead Husband Tom,

Why were you so against insurance? You always chuckled and laughed that you would never die and I would just remarry. Well guess what? You died one year later! It’s now two years later, all our money is gone and I have some real physical and mental challenges.

I am left with our daughter Susan, NO HOME, working two jobs, and bills coming from everywhere.  The doctor bills for your heart attack alone were in excess of $90,000.

The fun and laughter is now gone and we are really hurting! When I really think about it, I believe I am as much to blame as you are. I should have opened my mind and imagined the alternative picture that my Financial Planner was painting. Instead I chose to laugh about it and assumed it would never happen to us.

The joke is on me! I am not remarried and most likely will not get married ever again. When someone dies it is amazing the sorrow and pain that comes to the surface.

I want to let you know that I now have a policy on myself, and I make sure it is the first bill paid. If something ever happens to me, I want Susan to be protected. You know what kills me the most? For approximately  $650 a year, we could have been protected.

Tina

Published in Investment Advice
Monday, 27 August 2012 01:14

Financial Planning and Family Risk

There is an important aspect to Financial Planning we would like to highlight which is the potential risk associated with an illness, injury, or major trauma event occurring to a member in your family ie a son, daughter, their spouse or a grandchild.

If the unthinkable happened and one of your family members was to suffer from any of these events, would they survive financially, or would you need to step in and offer financial support?
We think it is important that you be honest and ask yourself two questions.
  1. Would you step in and help out your family in the event that one of your children, their spouses or your grandchildren were to suffer a serious illness or injury.  We know the importance of family and think in most cases the answer would be yes.
  2. How would you feel if when you found out they had no or insufficient insurance cover to provide for their family.......how would the rest of your family feel?

The financial consequences for you could be a burden too great to bear and drastically affect your future plans and other family members.

Many parents know little or nothing of their extended family’s real financial position, this extends to not knowing how much debt they hold and ongoing financial commitments they have.  In addition, most parents rarely know what insurance cover they have in place and if this is sufficient to meet the circumstance.

This is not unusual as they are adults now and responsible for their own life BUT, if something did happen and only then did you find out, you would potential have to suffer the financial consequences.  This is what we call Family Risk as it affects all members of the family.

We provide a financial planning service to the adult children of our clients.  We would be happy to have a discussion with you about your family and how we could provide this service to them.

Published in Investment Advice