Author: Jeffrey Liu
In Australia, approximately 12 million people rely on the default insurance provided through their superannuation funds for financial protection. While this coverage may seem convenient, a concerning investigation by ABC News has revealed significant challenges faced by policyholders when making claims. This article examines these issues and highlights why retail life insurance offers superior protection and peace of mind. When Default Super Insurance Falls Short: Real-Life Stories According to an investigative report published by ABC News in August 2018, many Australians have encountered serious difficulties when attempting to claim on their default superannuation insurance policies. John Grayson’s Battle with Loopholes…
When applying for insurance coverage, there’s often a gap between submitting your application and receiving approval for your formal policy. During this critical period, you may wonder: “Am I protected if something happens while my application is being processed?” This is where interim insurance comes into play, providing vital temporary protection during the underwriting process. What is Interim Insurance? Interim insurance (also known as temporary or provisional cover) is a short-term protection automatically provided by many insurers while they assess your formal policy application. This coverage begins immediately after you submit a complete application and initial payment information, offering peace…
In the careful planning of family financial protection, parents often focus primarily on securing their own health and wellbeing through comprehensive insurance policies. However, a truly complete protection plan must also address the needs of the most vulnerable family members – our children. Child cover represents an essential yet often overlooked component of a family’s insurance strategy, providing crucial financial support during what could be the most challenging times a family might face. Understanding the Financial Impact of Childhood Illness When a child faces a serious illness or injury, the emotional toll on a family is immeasurable. What many families…
Lyndal Jordon worked in corporate roles for decades and thought she had set herself up for a comfortable retirement. But in 2022, she was diagnosed with gastric cancer. She doesn’t know how long she has left to live and says her superannuation fund, Aware Super, and its insurer, TAL Insurance, have exacerbated the financial and emotional stress. “Your life changes completely when you receive a terminal illness diagnosis,” Ms Jordon tells ABC News. “You believe in the systems and processes that you’ve set up, and then you get this slap in the face.” After getting lower income protection and terminal…
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…