Protection strategies, tactics and products to protect you, your family and your income includes life insurance

Importance of Insurance

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healthcare_medicine_cost_finance_dollar_iStock_000019024391MediumAs well as safeguarding your family’s financial future, insurance can lessen the financial blow of an unexpected tragedy.

 

 

 

Level vs stepped premiums

The choice of stepped or level premiums can have a large impact on the affordability of insurance over your lifetime. While stepped premiums are usually lower in the early years, level premiums can be more cost- effective, so it’s easier to hold insurance over a longer period.

Case study

Rob, non-smoker, takes out $1 million of life cover at age 35.

Age next Level premiums per Stepped premiums
birthday3665Total premiums over 29 years annum$906$8,016$84,835 per annum$600$27,250$196,745

*based on Asteron Life Complete life cover at 20 September 2013, white-collar professional, indexation rate of 3%

 

While the stepped premium is cheaper initially at $600 pa compared with level premiums of $900 pa, by age 65 the level premium is only $8,016 whereas the stepped premium is a whopping $27,250. Over 29 years, Rob can save $111,910 by choosing level over stepped premiums.

 

Insurance in super

Insurance in super is another strategy we can use to address affordability and cash flow concerns.

The cost of insurance through super may be more affordable compared to policies held outside super. The fund may be able to offer group rates, the fund can claim a tax deduction for the cost of insurance and this tax saving is generally passed to the member in the form of a reduced premium. Premiums can be funded from concessionally taxed super contributions. For these reasons, insuring in super can be more tax-effective than insuring outside super.

 

Summary

Cancelling insurance may be trading long-term security for short-term savings. A risk of dropping insurance is that it may be unavailable or more expensive if taken up again later.

 

The best defense against financial disaster is to stay covered so talk to us today to find out your best option.

 

Source I Asteron Life

 

 

 

Breast Cancer

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imagesGet Them Covered

October marked Breast Cancer awareness month around the world. Breast cancer is the most commonly diagnosed cancer among women in Australia, with 14,940 women predicted to be diagnosed with the disease in 2013, rising to 17,210 women in 2020. That’s an average of 330 women a week.

 

 

In the last five years, breast cancer has made up 50% of all of trauma insurance claims paid to women. And a high prevalence isn’t just observed for trauma. Breast cancer accounted for 20% of income protection claims, 18% of TPD claims and 15% of life and terminal illness claims.

 

Increasing age is one of the strongest risk factors for developing breast cancer, but it doesn’t just affect older people. Two out of three cases will be diagnosed in women aged 40-69, key ages for insurance coverage.

 

How can insurance help?

Trauma cover can provide a lump sum payment in the event of diagnosis. You can discuss with us how much cover is needed and you may include funds for treatment, supplementary income, reducing debt or even for a spouse to take time off work. Given the high chance of claim, trauma is the most expensive of the lump sum covers available.

 

Trauma insurance can cover breast cancer diagnosed at any stage. Definitions have evolved in the last few years to provide full claims to most women, even if they are diagnosed early, referred to as carcinoma in situ. Modern definitions should cover women who have a lumpectomy and follow up treatment like radiation or chemotherapy, rather than requiring more dramatic treatment to satisfy a claim at an early stage.

 

Keeping life going

Of course not all women will cease work. Australian women have an 89% chance of surviving more than five years after diagnosis. Certain income protection definitions and benefits can help provide support.

 

Cancer patients are one of the most likely groups of claimants to continue working through treatment. Finding a policy with a 10 hour definition will give them the flexibility to work up to 10 hours a week while undergoing treatment, without financial penalty. You may also look for a policy with a counselling benefit. While grief support is common on life cover, under income protection, this benefit gives access to support and comfort during a difficult and stressful time.

There are lots of considerations when choosing a policy for cancer coverage and sometimes it is impossible to be across all the benefits.

 

To find out how trauma insurance can help you, contact our office today!

 

1,3, 4. www.nbcf.org.au/Research/About-Breast-Cancer.aspx

2. Claims paid between 2009 and August 2013

There’s more to income protection than you may think

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incomeProtection-4When discussing income protection with clients, we find there’s no shortage of misconceptions around what income protection actually covers, and how far reaching this cover can be.

 

 

Some people think that income protection only covers injuries and has limited value for those in low risk occupations. The reality is that it also covers illness, which makes up 40 per cent of claims.

 

Furthermore, it’s not only illnesses with obvious physical affects that are covered.

Mental illness is responsible for many claims and is by no means uncommon in our community; one in five Australians will experience a mental illness at some stage in their lives.

 

Many clients are equally unaware of the variety of ways income protection can assist, through supplementary benefits and support beyond the basic income stream. The following real life story dramatically illustrates the value of quality income protection insurance.

 

How Simon’s story unfolded

In the three months following the death of Simon’s best friend, Simon developed a debilitating post traumatic stress disorder resulting in clinical depression and time off work.

 

Fortunately, some years earlier Simon had purchased income protection.

 

This paid him a regular income, which helped replace lost wages. Simon was also offered a rehabilitation benefit, through which he was assigned a rehabilitation adviser.

 

The rehab adviser developed a management plan and worked with Simon’s GP to identify appropriate courses of therapy.

 

With Simon unable to return to his own occupation, the rehab adviser engaged a specialist — paid for by insurance — to retrain Simon for the building industry. Simon progressed well and was able to secure his first building job.

 

A twist in the tale

Long working hours, less family time and medical support took its toll; Simon suffered a relapse. The rehab adviser once again became involved and even organised a personal trainer to help Simon lose weight and to improve his general well-being.

 

Simon persevered, recovered and was able to recommence work, this time with more on-the-job training and support. Despite the fact that he was working full time, the insurance continued paying partial income support, due to his wages being less than what they were prior to his disability.

 

Taking the next step

Simon’s story demonstrates the value of quality income protection insurance that goes beyond a simple income stream; insurance that provides holistic support for the complexities that illness can bring.

 

Source I Asteron

 

Life is full of unexpected twists and turns. If you found yourself in a situation similar to Simon’s, could you survive without income protection? Don’t leave it to chance; speak to us today about the income protection options available to you.

 

People seeking support and information about depression can contact Lifeline on 13 11 14 and MensLine Australia 1300 78 99 78.

The Importance of Trauma Cover

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importanceofTraumaCover-2Thanks to modern day treatments, cancer survival rates are on the rise. But can you afford to be treated?

 Our new case study will help you understand the importance of trauma cover when facing serious illness.

 

One in two Australians will develop cancer before the age of 85 and one in five will die from the disease, according to a report from the Australian Institute of Health and Welfare (AIHW).

 

But while the incidence of all cancers rose by 27 per cent in the 25 years to 2007, deaths from the disease have actually fallen by 16 per cent. This proves just how far modern medicine has come and the calibre of treatments available to treat the various forms of this illness.

 

In fact, this report has revealed that cancer patients are increasingly living longer with 66 per cent now surviving for at least five years (for all cancers combined in the period 2006-2010) – a large increase from the 47 per cent survival rate for all cancers in the period 1982-1987.

 

According to Anne Bech, spokeswoman for AIHW, “While overall cancer survival is improving in Australia variations still exist between types of cancer.”

 

The report also revealed that cancer sufferers, who have survived for five years, had a 90 per cent chance of living for another five years for all cancers combined. This is all good news right? Well if you have enough money to cover all the necessary (and ongoing) treatments then absolutely! But what if you can’t afford to be treated?

 

One might be forgiven for thinking that a combination of income protection insurance, private health insurance and Medicare are enough to cover the treatment of serious illness. But the truth is, in the case of cancer, where it can take years of treatment including many rounds of chemotherapy, radiotherapy and even surgery, serious illness can come at a huge cost which can mean hundreds of thousands of dollars out of your pocket.

 

It’s important to speak to us to understand the difference a lump sum payment can make in the event of suffering a pre-defined traumatic event such as cancer.

 

Not only will trauma cover help to meet any out of pocket expense you might face, but it could in fact, ultimately assist with the road to recovery by removing some of the added financial pressure created by the need for ongoing and often expensive treatments.

 

Are you financially prepared for the treatments that go along with surviving serious illness?

 

For more information on trauma cover to put your mind at ease, contact us today.

 

Source I Zurich

Cover That’s Designed for Little & Big Kids

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CoverforKidzFor parents, there’s no greater pleasure than watching your kids grow into healthy happy adults.

Childhood is all about great experiences and big adventures. However, it’s not possible to prevent every childhood accident or serious disease. If, sadly, something were to happen to your children, how financially prepared would you be? It’s a conversation worth having.

 

BE READY TO LEND A HELPING HAND

A family with a seriously ill or injured child can face financial stress. Mounting medical bills and time off work to care for the child take their toll. That’s why understanding the benefits of child cover can help you get the right cover if something unforseen were to happen to your child.

 

WHAT TO LOOK FOR

Child cover offers can vary quite a bit between providers. It’s helpful to understand some of the key areas to look at when determining which cover best suits you.

 

Lump sum benefits can be as high as $200,000. Some providers include $10,000 in child cover premium-free for each eligible child as part of a lump sum or income protection policy, so this is worth investigating.

 

In addition, it’s important to look at the cut-off age for child cover, which isn’t necessarily just for little kids. Some providers make it available up to age 21 at which stage a lot of big kids have started driving and are going out without their parents. At this stage in life, children can be exposed to greater risks, increasing the possibility of injury through accidents.

 

If you move to another policy, including a spouse’s policy, consider if you can take your child cover with them. There are providers that allow fully-transferable child cover without the need for a re-assessment so kids can easily remain covered.

 

When a child grows out of child cover, you may want to continue covering your young adult children. To make it easier, often child cover can be converted to life cover, with linked or stand-alone trauma cover, without the need for any medical underwriting.

 

To find out more about child cover, talk to us today and see how we can help you further.

 

Source I Asteron