Author: Jeffrey Liu

Selecting the appropriate life insurance premium structure is an essential aspect of financial planning. In 2025, you typically have two choices: Variable Age-Stepped Premiums and Variable Premiums. Each option comes with its own advantages and disadvantages, so comprehending their workings will enable you to make a well-informed decision that aligns with your needs and budget. Changes to life insurance premium labels Following industry-wide reforms, the Council of Australian Life Insurers (CALI), together with the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), has revised how insurers describe their premium structures. These updates are designed to…

Suicide represents a significant health issue in Australia. According to the 2016 report by the World Health Organisation, suicide was the leading cause of death among Australians aged 15 to 44. This alarming statistic has prompted numerous questions about life insurance policies and whether they cover deaths resulting from suicide. In Australia, life insurance policies commonly include coverage for suicide, but typically the policy must be active for more than 13 months from the issue date. It’s important to check your PDS to verify this. Life Insurance May Include Suicide Coverage There is a widespread misconception that Australian life insurance…

In short: Corporate regulator ASIC is taking Cbus Super to court for failing to process more than 10,000 death and disability claims in a timely way. ASIC is alleging that payments from more than 6,000 of those claims have been delayed by more than a year, and some are yet to be completely rectified. What’s next? Cbus said it will ask ASIC to engage in alternative dispute resolution to avoid lengthy litigation. The corporate regulator ASIC is taking industry superannuation fund Cbus to court for failing to process more than 10,000 death and disability claims in a timely way. The…

A recent report from iRess highlights a concerning trend among insurers, revealing that some allocate as much as 47% of their Income Protection recommendations to products featuring monthly benefits that decrease to 60%, or even 48%, after a two-year period. This finding is particularly noteworthy as it contrasts sharply with my expectations and the prevailing discussions surrounding the reduction of Income Protection products. For a comprehensive comparison, please refer to the details below. The disparity in potential benefits can be significant. Below is a straightforward example: Age of Claim: 40 Income: $120,000 Benefit payable to Age 65 without indexation: It is likely…

An unforeseen illness or injury can lead to considerable financial stress, particularly if it hinders your ability to work. Income Protection insurance acts as an essential safety net, supplying income replacement when you can’t work because of an illness or injury. Often accessible through superannuation funds, the premiums for this coverage are usually deducted from your super contributions, making it a convenient choice for many. What is Income Protection insurance? Income Protection insurance is intended to replace a portion of your income if you cannot work due to illness or injury. IP can be funded through your superannuation fund, with…

As your life changes and your responsibilities expand, your life insurance should expand with it. And if you’re thinking that sounds like a lot of effort, think again. Most policies allow you to increase your cover without any medical checks or complicated forms when major life events occur, like having a child or increasing your mortgage. In fact, that’s exactly how your cover is designed to work. Insurance isn’t ‘set and forget’ A common misconception about life insurance is that it’s a ‘set and forget’ arrangement that doesn’t need to be reviewed regularly. The problem with that approach is that…

Purchasing a home is an exhilarating experience. This article guides you through the home buying process, helping you understand what to anticipate. 1. Save for a house deposit The initial step is to organize your finances. Create a budget to determine how much you can set aside for your deposit. Then, conduct some research on house prices. Understanding the general cost of houses helps you establish a target to aim for. An ideal savings target for a house deposit is 20% of the purchase price, plus enough to cover buying expenses (refer to steps 5 and 6 below). 2. Determine…

The Superannuation Across Generations (SAG) survey found that 87% of respondents believe in the value of superannuation as a means to save for retirement. Support spans all age groups, demonstrating broad approval of the system. Generational Perspectives on Super:The survey revealed that Baby Boomers (93%) are the strongest advocates for superannuation, closely followed by Gen Z (89%). The Silent Generation (87%), Gen X (84%), and Millennials (83%) also showed strong support, indicating widespread trust across demographics. How Actively Are Australians Managing Their Super?Australians are now more engaged with their super than ever, with over a third checking their balance at…

In Australia, individuals often seek financial security through various insurance products, particularly in the context of job loss or income disruption. Two popular options are Living Redundancy Cover and Income Protection Insurance. While both serve to provide financial assistance during challenging times, they have distinct features, benefits, and limitations. This article explores the key differences between these two types of coverage. 1. Definition and Purpose Living Redundancy Cover: Living Redundancy Cover also called as Repayment Relief Benefit. This type of insurance is designed to provide a lump-sum payment if you are made redundant from your job. It aims to cushion…

Bundling multiple types of coverage into a combined life cover policy may help you save on insurance. This can include life insurance, TPD, trauma cover, and income protection. It’s important to understand the advantages and disadvantages, as well as the impact of claims on your payout, before choosing between a linked or standalone policy that best meets your needs. The Difference between standalone and linked cover Linked Cover A bundled cover is a policy arrangement that combines multiple types of lump-sum coverage into a single policy with one premium. These policies are typically less expensive because if benefits are paid…