Author: Jeffrey Liu
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…
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…