PERSONAL INSURANCE
Personal Insurance requirements can take on any number of variables in determining an appropriate level of cover. However, often premium cost represents the majority focus.
Whilst affordability is the key to maintaining ongoing protection, can one be sure that they have the right cover? or is there an alternative combination or a structure that would be more practicable that will meet the premium?
Apart from the Life insurance, there are options for total and permanent disability that can be purchased as an extension of cover as a standalone product. It can be structured under an “any occupation” or “own occupation” definition.
These definitions can differ from insurer to insurer. It can be incorporated into super or its ownership can be elsewhere. There are taxation considerations to be assessed when beneficiaries or dependents are being considered.
Then there are those who will rely on their super fund to provide their entire insurance benefit, but that in itself could be a concern in time. For example, employment changes from time to time and so does the structure of the conditions or acceptance of cover from fund-to-fund. So do you.
Insurance cover under your super may not always provide an automatic and all-encompassing level of protection. There may be exclusions for pre-existing conditions (health) that may limit your future option for protection.
The evaluation of what you have today needs to be weighed against what you may need in the future and a plan as to how that may occur put in place today.
The evaluation of what you have today needs to be weighed against what you may need in the future.
INCOME INSURANCE
Income Insurance has an array of benefit options that vary depending on the benefit, period of protection, age, and employment.
Underwriting should be done at the initial submission time so that with the commencement of the insurance comes the guarantee of benefit payment at claim time.
However, that is not always the case. Styles and types of cover vary, definitions differ and so do the applicable premium cost from company to company. The information supplied to you when looking to establish cover should accurate and appropriate at the time of your enquiry.
Policy conditions should be available so that enquiries can be satisfied as they arise.
Income Insurance has an array of benefit options that vary depending on the benefit, period of protection, age, and employment.
Trauma Insurance again has an array of benefit options that can vary from insurer to insurer. The protection offered by this type of cover is quite extensive and includes events like cancer, stroke, heart attack, a range of life-changing disabilities and illnesses.
Essentially it is a cover that provides upfront payments at the time of diagnosis or occurrence. As such it differs from Life insurance or total disability covers. It is a particularly important cover that can meet or contribute to medical expenses or provide a lump sum payment to assist with any financial costs.
It does not require you to working nor does it rely on an assessment of income like Income insurance. As such it is an ideal for young or stay-at-home parents, working couple sharing the repayments of a home or investment mortgage.
It can be used to fund additional medical costs or simply provide the financial support to enable time for recovery.
Important cover that can meet or contribute to medical expenses or provide a lump sum payment to assist with any financial costs.
TOTAL & PERMANENT DISABILITY
Total & permanent disability (TPD) is often bundled as an insured extension with Life insurance cover. In these instances, it is presented as an alternative to a death benefit payment and accessing the insured benefits of the Life insurance policy for a TPD benefit usually concludes the insurance cover. So “the inclusion of this benefit, represents “an and or” situation.
Whilst this may be the case in most circumstances, it is, however, a cover that can be provided as a stand-alone or purchased in addition, to any cover that may have been combined with life insurance, to provide a very real level of protection.
It is often designed to provide the payment of the sum insured, usually, an amount that when invested will provide an income stream, that will go towards the replacement of the lost income or earnings as a result of not being able to return to work, again.
However, in my experience, clients often feel the term TPD requires the occurrence of a dramatic condition that in real terms can have a very limited likelihood of happening and as such, options of ever attaining a benefit payment is remote.
So its importance is easy to dismiss and therefore to not establish an appropriate scope of cover.
Unfortunately, there are definitions from company to company that can vary greatly.
Insurers can alter cover depending on the product that it is attached to and as such consideration as to how an insurance policy defines TPD, as well as, the occupation definition can determine the degree of difficulty and whether the disability can be assessed successfully, to enable a payment.
Finally, there are taxation considerations when looking to incorporate this type of cover.
Cover that can be provided as a stand-alone or purchased in addition, to any cover that may have been combined with life insurance.
TAXATION
When considering Insurance there are two key taxation considerations;
- Whether the premium payable for the product is tax deductible
- Whether the benefit received, in the case of an insured benefit payment, is assessable
With Superannuation the tax considerations generally relate to
- The ability to claim a tax deduction on a super contribution
- The tax position on benefits received from a super fund
Generally with insurance, if you can claim a tax deduction for premiums paid then any benefits received will be assessable.
The very significant exception is surrounding Insurance inside super where it is paid to a defined beneficiary.
This enables premiums to be tax deductible and at the time of death, the benefit payment can be made for example, to a spouse, without the benefit being taxed.
This, in essence, makes insurance inside super a very important consideration.
If you can claim a tax deduction for premiums paid, then any benefits received will be assessable.
CORPORATE INSURANCE
If you would like to find out more about Corporate Insurance, please contact us and fill in any questions or details pertaining to your enquiry.
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