Insurance Protection

Life insurance isn’t always a topic people want to talk about. In our Perth office, we see all forms as income protection insurance. Unfortunately, every time there is a study or a poll, it seems like more and more Australians are underinsured. This is often due to avoidance and denial, but it often happens out of a false confidence many have that “it can never happen to me.”

Unfortunately, “it” does happen to a lot of Australians every day. Nobody plans on having catastrophic illness or injury, but they still happen. The most recent survey showed up on an insurance industry website called RiskInfo, which publishes insurance industry news.

According to the poll, in which more than 1,000 Australians were asked questions about their life insurance coverage, 33% perceived themselves to be underinsured, while 23% said they were unsure if their current coverage was enough to protect their families if they died or became unable to work. Only 45% estimated that they were adequately insured. *

Some other results: of those who had only one of the four major types of insurance, more than 67% said they thought their coverage was adequate to protect their income and their families. *

One of the more important and underrated aspects of financial planning is income protection. To that end, we offer various forms of life insurance in our Perth office. We can’t give individual advice in a blog because everyone’s financial needs are different, but can offer some indications that it may be time to at least call a financial planner and ask for an insurance checkup.

Yearly Checkup

When you entrust your financial planning to us at Approved Financial Planners, we are always happy to offer a yearly insurance checkup. We feel that we owe it to our clients to provide them with the best in financial services. Consequently, we offer a yearly insurance checkup just to ensure that changes in your financial situation haven’t made it necessary to alter your coverage to better protect your assets.

Life Changes

Changes in your life often affect your financial situation because they can change your financial needs and priorities.

Changing Employers

If you change your employers, your entire financial situation can change. Different employers usually have different superannuation funds and different insurance plans. If you were depending upon your previous job for any kind of insurance, it is a good idea to find out what kind of insurance your new job provides.

We currently provide life insurance and disability insurance to many of our Perth area clients. They are two popular forms of wealth protection. Many people think they “can’t afford insurance,” but it is possible to afford it now and later, depending upon how you choose to pay your premiums.

There are two basic ways to pay for insurance: a stepped premium and a level premium. Here’s how they work.

Stepped Premium

A stepped premium starts out low and increases as you age. It is most often chosen by those who expect to make more money in the future than they do now. Ideally, younger clients on a career path find their income rising as their premiums rise. If their careers go as planned, the stepped premium can work out very well for all parties.

Level Premium

A level premium is higher at first, but tend to remain stable over the years. The premium is calculated each year, based on the age when you first took out the policy, no matter how old you are. This avoids the sharp rise that often happens with a stepped premium.