You Can't Predict, You Can Protect

Many people pay close attention to insuring their personal effects, usually the family home, contents, car and precious jewellery. These items provide lifestyle, value and memories. We would have a void to fill without them, miss them and lucky for us they can usually be replaced.

Rarely do we stop and think about ourselves. Insuring yourself is really about protecting your loved ones, your lifestyle, expenses, debt, and having peace of mind; a safety net in place should things go wrong.

  • It is projected that, by 2030, the number of Australians living with severe disability will have increased to 2.3 million because of population growth and ageing.
  • An estimated 75% of Australians had a long-term condition in 2007/08, that is, a disease or health problem that had lasted, or was expected to last 6 months or more.

It’s clear there is a growing need for insurance; Australia however is one of the most underinsured nations in the developed world.

This video addresses some common misconceptions stopping people from taking out insurance:


Six vital steps you need to take to implement insurance

So let’s look at the 6 vital steps necessary to take in order to implement an insurance policy that is tailored to your needs and that of your families:

  1. Work out what’s important to you – have a think about what you enjoy, value and want to maintain and protect. What really matters to you? This is what you need to insure.
  2. Understand the impact of a life event today – how would your current arrangements provide for you/and or your family. What would the impact be?
  3. Understand the type of insurance policies available – what type of policy will protect what is important to you? Different policies cover different life events, there is a wide range of insurance types such as life, total and permanent disablement, trauma and income protection insurance.
  4. Use a professional adviser that can get it done for you - Let’s face it, the life insurance adds on TV are tempting, they look easy and accessible; however they should be taken as a reminder.

    These types of insurances are generic; a large net aimed at capturing a wide audience. We however get to know your situation, discuss options and most importantly provide you with a tailor made insurance plan specific to your needs only.
  5. Don't delay - Don’t put off obtaining appropriate cover. You can’t insure against an event that has already happened…

    Furthermore if you start showing a pre-disposition of a particular condition (which generally increases as we age) the insurer is likely to apply an exclusion on your policy for the condition (even if you do not suffer it yet), limiting the scope of your insurance cover.  

    If you already have a condition, it's even more important to get cover in place for all the other possible events that could occur, did you know some insurance policies such as for e.g. Trauma could cover up to 57 conditions? 

    Delaying may also end up costing you more money, as premiums will increase as you get older (unless level premium option is selected).
  6. Take note when life changes - Insurance levels should be reviewed on a regular basis to take into account changes such as reducing or increasing your debt, having a child, getting married, choosing private school over public school, changing your living arrangements etc. Insurance is not a ‘set and forget’ proposition.

Common misconceptions stopping people from taking out insurance

"Workers compensation will cover me”

Not usually, this only covers events that take place at work and the amount covered, if paid as it is not guaranteed, may not be adequate to protect your lifestyle.

“I have insurance inside my super to cover me”

Usually cover obtained within a super fund is the default cover. It’s not specific to your needs and can be grossly inadequate. There are rules about whether you can access the insurance pay out within your super fund before you reach retirement age.

“It won’t happen to me” – this is the big one, we truly hope it doesn’t, sadly statistics show it will happen to some of us:-

  • Cancer is Australia’s leading cause of disease at 19%. In 1 year 110,000 new cases of cancer are diagnosed.  
  • Cardiovascular disease follows at 16%, 1 of us has a stroke every 11 minutes. 1.1 million are disabled by heart and vascular disease.
  • Mental disorders represent 13% of the cause of disease. Around 1 in 5 Australians aged 16–85 years has a mental disorder at some time in a 12-month period, including 1 in 4 of those aged 16–24 years.
  • In addition, death rates from these diseases are falling making it more important to hold appropriate trauma, income protection and total and permanent disability cover.
  • Type 2 diabetes is increasing and is expected to become the leading cause of disease by 2023.
  • Ambulances attended 2.9 million incidents in 2008–09, of which 39% were emergencies.
  • Accidents also happen, 315 people drowned in 2011. 

4 in 5 people consider “life insurance too expensive” - In fact, it’s usually cheaper than a daily cup of coffee.

1 in 2 “doubt my insurance claim will be paid”

The following payout statistics from one particular insurance company say otherwise:-

  • In 2011, over $602 million paid in claims
  • $272 million in life cover
  • $78 million in trauma cover (cancer, heart disease, multiple sclerosis)
  • $155 million in income protection
  • $97 million in total and permanent disability.

And the payout figures are increasing each year.

Why should you choose us for your insurance needs?

  • We have over 25 years of experience preparing tailored insurance needs analysis for our clients.
  • We have strong relationships with our insurance providers and can ensure the best underwriting outcomes. We know what to ask and we know what to challenge.
  • When you need to activate your insurance policy, you need the cover paid promptly – we can guide you through claim time. Feedback from insurance companies has been there is a higher payout rate when a client has an adviser guiding them at claim time. Again, we know what to challenge on your behalf. 
  • We review your insurances as you progress through life to ensure it remains right.

If you have any doubt that your insurance may not be adequate please contact us on Ph (03) 9349 1525 to discuss.