Author: Jeffrey Liu
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…
Question: Is it permissible for an overseas property to be part of a Self-Managed Super Fund (SMSF) if it is not rented out but is intended as an investment for future superannuation income? Answer To address this question, we must consider the regulations and guidelines concerning property ownership within an SMSF. It is also essential to reflect on the motivations behind acquiring property as an investment, particularly overseas property, and whether this aligns with the fund’s overall investment strategy. Ownership of Property in SMSFs Self-Managed Super Funds are permitted to own both domestic and overseas properties. In fact, property is…
Starting an insurance claim can seem daunting, but understanding the process can make it much more manageable. Whether you’re dealing with home, car, health, or travel insurance, knowing the steps to take can help you navigate the claims process smoothly. Here’s a comprehensive guide on how to start your insurance claim in Australia. 1. Understand Your Policy Before initiating a claim, it’s essential to review your insurance policy. 2. Gather Necessary Documentation Collecting the right documentation is crucial for a successful claim. 3. Contact Your Insurance Provider Once you have your documentation in order, it’s time to contact your insurance…
Life insurance is vital to securing financial stability for families. Choosing between group life insurance, where an employer or super fund trustee insures a group of employees or members, and individual retail life insurance, which is generally purchased through a life insurance advisor, can be confusing. Understanding the difference helps you make an informed choice that suits your financial protection goals. What is the main difference between group and retail life insurance? Group life insurance is usually provided by superannuation funds or employers and often comes with lower or limited coverage. In contrast, retail life insurance is acquired directly from…
The dreaded increase is here – health insurance premiums are set to rise in April. With health funds proposing an average hike of 6%, this year’s increase could be one of the largest yet. So, how can you respond to the upcoming health insurance price hike? You have two choices: If neither of these options is pursued, then you are effectively accepting the increase. Should You Cancel Your Health Insurance? Cancelling your health insurance might seem like a good way to save in the short term, but it can quickly become a costly mistake if you experience an accident or…
1.Minimize tax liabilities for individuals earning over $97,000 annually: To avoid the Medicare Levy Surcharge (MLS) if your income exceeds the relevant threshold, obtain an eligible private hospital insurance policy for the full tax year. Although private health insurance isn’t tax deductible, it can still influence your tax situation. Firstly, the private health insurance rebate is accessible to those with an eligible Medicare card who meet specific income thresholds and have a hospital, extras, or combined health insurance policy. This rebate can be claimed annually through your tax return, or you can opt to receive it as a premium discount. Moreover, if…
Property owners in Australia have access to various types of insurance products tailored to meet their specific needs. Among these, Holiday House Protection and Landlord Insurance are two distinct types of cover designed for different purposes. Understanding the differences between these insurance options is essential to ensure your property is adequately protected. What Is Holiday House Protection? Holiday House Protection is a type of insurance designed specifically for properties used as holiday homes or short-term rental accommodations. These properties are typically rented out through platforms like Airbnb, Stayz, or Booking.com, or are occasionally used by their owners for personal leisure. Key Features…
The devastating wildfires in Los Angeles (LA) highlight the destructive power of natural disasters, leaving many homeowners grappling with the emotional and financial toll. While LA might seem far from Australia, the similarities between the two regions—both prone to intense fire seasons—make the lessons from these events highly relevant to Australian homeowners. Comprehensive home insurance is not just a safety net for homeowners; it is an essential tool to protect against the financial devastation caused by bushfires, which are becoming increasingly common in Australia. Lessons from LA Fires for Australian Homeowners 1. The Rising Threat of Bushfires Both LA and Australia…
An increasing number of Australians under 50 are being diagnosed with cancer, as reported by the Australian Institute of Health and Welfare. Although survival rates for common cancers in individuals in their 30s and 40s have increased, the cost of treatment can reach thousands. The AIHW cancer report additionally discovered: The insurance giant Zurich has released a 2024 report detailing the costs of care for prevalent cancers, including out-of-pocket and lifetime recovery expenses. For bowel cancer – which is one of the top five most commonly diagnosed cancers in Australia* – the average out-of-pocket cost in the first 12 months…