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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

Is Your Insurance Working For You?

Published with permission – Is your insurance working for you?

Recently a client of ours, Anand, came to us seeking an opinion on his existing insurance cover.

We detailed his cover to him and explained the strengths and weaknesses of it and to Anand’s surprise, there were many variables we identified that were not in his favour.

A lot of people think that they are well protected because they have insurance through their super but not many people stop and think to understand whether their cover is sufficient, or let alone know how much they have. Ask yourself, is your insurance working for you? Anand’s cover was just this, default cover that was automatically offered to him by being a member of his superannuation fund which he wasn’t clear on.

We educated Anand on his existing cover and then took the time to understand what Anand values and importantly what he would want to happen to his family if he were to pass away or become totally disabled.

Anand also had income protection cover. However, rather than having 75% of his salary insured (generally the maximum one can insure) he only had 50% of his salary insured. Furthermore, we identified many other weaknesses in his policy that required attention.

Once considering Anand’s situation thoroughly we calculated and presented options for insurance that were necessary for his needs.

Ultimately Anand was able to:

  • Obtain a level premium contract. The cost saving by doing this was calculated to be over $140,000 between his current age and age 65. These types of contracts are rarely offered by superannuation funds.
  • Obtain appropriate life and TPD insurance through an external insurer, while still being able to continue paying for his insurance with money from his superannuation.
  • Obtain an income protection policy that was in line with 75% of his income.
  • Obtain an income protection policy on a much shorter waiting period and with a benefit period to age 65 (compared to his existing policy’s mere 2 year benefit period). This means that if Anand could not return to work due to injury or illness he could potentially be paid by the insurer up until age 65, which is for 35 years based on his current age.
  • Obtain income protection on a contract where Anand was guaranteed to be paid a benefit in line with cover he applied for and also where in the event of a claim, his benefit amount paid would increase in line with inflation each year. These features aren’t options generally available through super funds, including his existing super fund. Imagine trying to claim on your income protection policy to be told that because of the way it is set up you are not going to be paid!

Anand felt as though he was very well looked after throughout the whole process and really admired the extra length we went in explaining how insurance works and the options that he could explore. You can read Anand’s testimonial here: http://www.yieldfinancialplanning.com.au/testimonials/

Your ability to earn an income is your single most important asset so can you afford not to insure it?

Contact the insurance expert at Yield Financial Planning today to review your insurances and see if your insurance is working for you. This ensures you secure a suitable cover for yourself.

“GOOD FORTUNE NEEDS GREAT PLANNING”


GENERAL DISCLAIMER:

The content of this presentation is intended to be general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should consider its appropriateness having regard to these matters or obtain relevant professional financial advice before making any financial decisions.  Examples are illustrative only. Each person should obtain any relevant professional financial, taxation and social security advice before making any financial decisions.

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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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