Tag Archives: income protection

Reviewing Personal Insurance

You always hear stories and advice about how important it is to have proper insurance cover, but once it’s in place often everyone sets and forgets about it.  It’s paramount that your insurance policies are reviewed on a regular basis to ensure you’re adequately covered. So how do you know when it’s time to review your insurance policies?  There are several life stages and events, which should trigger you to review your insurance policies.  Whether it be more responsibility such as starting a family, buying a house or even stressful events such as divorce and deaths of family members.  These types of events should trigger a call to action and requires you to review your insurance policies.

 

HouseStarting a family and/or buying a family home
Whether it be having a first child or buying your first home these are the most memorable and proud moments of your life, however often comes with additional responsibilities.  For those of you who remember to review your insurance needs, it’s often done after you’ve had kids or purchased that home.  This may leave you in a bingle as personal insurance policies can often be complicated and may require lengthy amounts of time to alter.  If bad luck strikes after the purchase of the home and your insurance policies aren’t adequate, this may potentially leave you in financial strife.  Therefore it’s a good idea to review and implement adequate insurance covers before these events.

 

Deaths of family members
When a close family member suffers from a medical condition, often this triggers you to think about your own morality and whether the same thing can happen to you.  This would normally be followed with thoughts of what will happen to my family if I were to suffer from the same condition?  On a lifestyle level, you might think to yourself and say I’m going to start eating healthier foods and exercising more.  The other question you should ask yourself, is do I have adequate insurance policies in place, if the same thing was to happen to me?  Again these types of events should trigger you to review your insurance needs.

 

Along with the above events, personal insurance covers should be reviewed but not limited to the following situations;

  • Marriages and divorce
  • Starting a family
  • Buying a house
  • New job
  • Kids enrolling in new school or completing their education
  • Illness and death in the family

 

If you’re unsure on whether or not to review your insurance needs, we strongly advise on picking up the phone and speaking to either your adviser or insurance representative.  There’s no harm is asking questions.

 

Putting in place personal insurance cover doesn’t necessarily require certain events to occur in your life.  Sometimes you may wish to protect the people around you financially.  For example you may be a 22 year old wanting to provide funds to your parents to look after you if you can’t look after yourself so you might want to look at Total & Permanent Disability (TPD) cover, or you may be a single 40 year old that needs to make sure income keeps coming in as you don’t have any other way to provide for your living expenses if you can’t work so you might consider income protection, or even a business owner that’s planning on the sale of the business to fund your retirement plans so you need insurance to make sure those plans don’t go off track somewhere along the line.

 

Whether it’s a certain event which occurs or you just wish to protect your family financially, personal insurance is a complicated area and needs to be looked at in depth.  Therefore it’s always strongly recommended that you visit an insurance expert such as JBS to review your circumstances and to ensure adequate insurance cover is in place for you.

 


Young, Free & Unprotected

When we’re young and free with the world at our feet, we think that we’re pretty indestructible (I remember that time). Life’s all about fun! Travel, drinking, friends… who wants to think about grown up things like insurance? While we might not want to think about it, it doesn’t stop that fact that we all need it.

Let me throw some figures at you… According to the place with all the info (The Australian Bureau of Statistics), they say that:
– In 2009, 15% of people in ‘prime working age’ are disabled.
– There are 275 new cases of diabetes in Australia every day, while two million of us are at risk.
– One in five Australians will experience a mental health problem in their lives.

And the Australian Institute of Health and Welfare put out a report that said:
– Males were 2.2 times more likely than females to be seriously injured as a result of a land transport accident, while just over 50% of those seriously injured were aged less than 30 years.
– For those seriously injured due to traffic (on-road) accidents, 28.2% were judged to be suffering from injuries which were considered to be high threat to life.

Of AMP’s 2010 claim, youngest to claim on Total & Permanent Disablement was just 18 years old, Terminal Illness was 24 years old, and Income Protection was 19 years old.

But what does that mean for you as a young nipper? Well, those figures don’t discriminate against age. We like to think that these figures are for the 15% of the older population or the two million people other than me.

But the reality is that it has to happen to someone, so it might be you. While we can take measures to reduce the risk, we can’t eliminate them and so we should look at ways of ensuring that other aspects of our lives are not negatively affected by it. Personal insurance gives you that freedom to know that if something did happen, you wouldn’t have to worry about the money needed to pay for rehab or maybe the cost of the experimental treatment, renovations to your home or even just having your partner or your parents stop work to be by your side in your recovery.

If we look at the statistics, you’re more likely to have a major medical injury or illness than win tattslotto but I bet you’ve bought a ticket or two in your life. If you think you’re in with a chance to win the big bucks, then you’re in with more of a chance to have something go really wrong with your health. So, why wouldn’t you take out insurance?

Also, taking out insurance while you’re young can save you thousands in the long run. While you’re young, you’re relatively healthy and therefore taking out insurance is cheaper. You are more likely to get standard rates, which means that you are no more of a risk of claiming than anyone else your age, unlike when you’re older, rounder and doing less exercise. If you can get standard rates at a young age, you can take out level premiums. This means that you can spread the risk of claiming over the life of the policy rather than just year by year and save a heap in the long run!

So take time out from all the stuff young people do these days and do a grown up thing for just a minute or two! Once it’s in place, you don’t have to think about it again (we’ll review it for you to make sure that it stays relevant) and you can go back to your Contiki tours, absinthe and ipads. Oh and it covers for anywhere in the world.

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