by Jodie | Mar 16, 2017 | Advisers, Insurance & Protection, Retirement
You’re retired, the house is paid off and the children are self-sufficient, – it may be time to review your life insurance?
Policies expire
People take out life insurance while they are working to protect their dependants if they die prematurely.
Life insurance policies, including income protection, trauma, and total and permanent disability (TPD) insurance, generally expire when you reach a certain age, even if you are still working. So, let’s consider some of the insurance products you may have and see how long they generally last.
Insurance options
Term life insurance is a popular policy option. Beneficiaries receive a lump-sum payment if the policy holder dies or suffers a terminal illness and the usual expiry age is 99.
TPD insurance is paid in a lump sum if an accident or illness prevents the policyholder from earning an income. The usual expiry age for this type of insurance is 65.
Trauma insurance covers a major illness or injury, such as a stroke or car accident. It covers specific events and is paid out in a lump sum that can be used for any purpose, such as living or medical expenses. The usual expiry age for this type of insurance is 70.
Income protection insurance covers loss of income caused by accident or illness. Typically, these types of policies pay 75 per cent of the insured person’s income but there are many variations in their terms. The usual expiry age for this type of insurance is 70.
What about my super?
There are usually additional rules for policies held within a superannuation fund. Life insurance coverage through super usually ends at the age of 65.
When deciding whether to take out or continue your life insurance, you may wish to consider such things as any outstanding debts, including any mortgage repayments, as well as the needs of those you leave behind.
Nevertheless, each person’s circumstances are different and if you are unsure of what you need, talk to your financial adviser.
![Safeguarding your retirement plan]()
by Jodie | Mar 3, 2017 | Budgeting, Finances, Insurance & Protection, Superannuation, Wealth
From wills to long-term budgeting, there’s a lot to think about when making your retirement to-do list. Here’s some top tips to make sure you’ve ticked all the boxes.
1. Check your Will and Power of Attorney documents
Without a valid will, an administrator will be appointed to manage your estate, which may cause your family plenty of problems. To save them stress, ask a solicitor to draw it up for you and make sure you and two witnesses sign it. Powers of Attorney protect you whilst you live, but can’t make your own decisions. Pick the person you trust most to make the big decisions in your life.
2. Plan your estate
Think of your estate plan as your family’s stress-free action plan that they can turn to for guidance when you pass away. It should cover all of your documents, contacts, debts, bills and assets so your family can easily figure out what to do with them. And don’t just put it all on paper, communicate with your family now, and let them know what you’d like so everyone is clear. It may save problems later!
3. Budget for the long haul
Australians are living longer than ever – which means your retirement savings also need to last longer. Create a long-term budget that will help you live the lifestyle you want – and don’t forget about healthcare costs. Then comes the most important part of a budget – sticking to it. Think of it as the plan you’ll follow for future spending.
4. Invest in your future
From boosting your superannuation to investing in shares and property, understanding your investment options can make a huge difference to your retirement savings. When you start investing – the earlier the better – make sure you have a mix of investments to spread your risk. And invest in yourself! Learn and partner with a professional to maximise your options.
5. Be wary of scams
Investment scams are on the rise in Australia, with perpetrators directly targeting retirees to access their superannuation funds. Protect yourself by never giving out your financial details over the phone or by email. And be suspicious of anything that sounds too good to be true. You know it probably is!
6. Start thinking about insurance
Many insurance policies expire at a certain age, leaving you without cover. And if yours comes from your superannuation fund, it could be eroding your savings. From age-based insurance policies to products that cover funeral expenses, you should seek professional financial advice to develop a plan that is appropriate for you as you enter retirement, so touch base with your planner sooner rather than later.
