In Australia, Life Insurance and TPD Insurance is typically included in your super – by default. Generally this is a good thing, but if you’re one of the 4 in every 10 Australians who have more than one super fund, it may not be a
good thing at all.
Why? Because, unless you’ve opted out of insurance with your other funds, you’re essentially duplicating your cover AND your premiums. As you can see below, this can have a massive negative impact on your retirement savings.
It’s in our 40s that living costs Age typically start to really soar…. mortgage, kids, school fees, the list goes on. It’s also the age when the incidence of people suffering a serious illness or injury starts to soar. Dramatically. In fact 68% of
trauma insurance claims are made by people in their 40s*.
The 40s is also when many people let their insurance lapse….which is the exact opposite of what they should be doing. It’s like flying your family into a storm and UNfastening your seat belts.
How to increase your chances of a full and prompt payout from your Life Insurance company
Life, Trauma, Income Protection and TPD insurance are there to cover you for dire events. So when you need to make a claim, you need it approved NOW – and paid as quickly as possible. Unfortunately, that’s not always what happens. ASIC recently found that some life companies were rejecting as many as 1 claim in every 3*. That’s quite an alarming statistic, but bear in mind it’s not all life companies, only some.
Better get insured while you’re still bulletproof
When we’re young we tend to think we’re unbreakable, bulletproof. It’s only once we hit 35 or so, and we start to hear of contemporaries suffering major illnesses or conditions, that it tends to dawn on us that actually we’re not…
…that maybe it’s time to get properly insured. And with good reason read on –
What is it for?
If you have an accident or suffer an illness that means you’re unable to work, or only work in a reduced capacity, once your sick leave runs out and you no longer earn your full income, how will you afford to live?
Income Protection insurance provides you with, typically, 75% of your usual salary in a monthly payment – so you can keep making loan repayments, stay on top of household expenses and also continue to generate savings for your future.