Do I really need insurance?

Well, no one can predict with accuracy whether or not they will become seriously sick or injured, or when they’ll die. So even if you feel young and invincible now, you don’t know what’s around the corner. This is what insurance is for.

Insurance protects you and/or your family if anything should happen to you. And if it does, it creates a financial cushion for you, or the people left behind if the worst happens to you.

What does my insurance policy cover?

What you’re covered for will depend on the type of policy you have. Your Product Disclosure Statement (PDS) provides detailed information of what’s covered. A PDS should be made available to you prior to your application for insurance cover.

What types of personal risk insurance are available?

Here are the major types of cover available:

• Trauma/Critical Illness: this covers major illnesses or injuries that will make a significant impact on a person’s life, for example, cancer or a stroke.
• Total Permanent Disability (TPD): this covers rehabilitation costs, debt repayments and the future cost of living if you are totally and permanently disabled.
• Death or life: this is insurance that is payable in the event of death.
• Income protection: this is cover for when you are unable to work due to injury or sickness.

What is general insurance?

General insurance provides cover for your personal or business assets.

On a personal level, this could be Home and Contents, Motor Vehicle, Personal Accident, Travel and Farm Insurance.

On a business level, this could cover Commercial Property, Office, Key Man, Professional Indemnity, Directors & Officers, Public Liability, Aviation, Machine Breakdown and more.

I’m interested in an insurance policy but how do I know it is right for me?

Your Ink Wealth Advisor can help you identify if insurance is right for you, along with the type and amount of cover that will best match your needs. We’ll start by gaining a full understanding of your personal circumstances, and our recommendation to you will be presented in a written report.

What payments are involved with insurance?

If you enquire about insurance but choose not to apply for the cover, you will not be charged for the initial appointment. If you proceed to the next step, your Ink Wealth Advisor will prepare a Statement of Advice report (SOA), which is a legal document, prepared by a paraplanner. There is a fee for the preparation of this document, but it is generally between $300-$500 depending on the structures and complexity.

There are no further fees involved in setting up your insurance, apart from the premium set by the life insurance company for your cover. This differs from person to person, depending on the insured person’s situation and the amount of cover they are seeking. You’ll find this information in your Statement of Advice (SOA).

What’s the difference between cover obtained through an Advisor versus cover I can buy direct?

Risk insurance is intended to give you the peace of mind that you’re correctly covered for risks that may apply in your life. And without professional advice, it can be hard to be certain you’ve got the right cover for you. There are different kinds of insurances, and the terms and premiums vary from one insurer to the next. Things like waiting periods, benefit periods and exclusions impact your cover and premium, but not everyone understands what these mean.

A person who works as a qualified Advisor must undertake significant training and ongoing professional development. This means they are well equipped to explore your requirements with you, and to recommend the type and level of cover that’s best for you.

While cover bought direct is better than no cover at all, without professional advice, you risk having the wrong cover, or cover that’s insufficient for your needs.  The policy wording may be restrictive (which you’re unlikely to discover until claim time), or it may cost more than you need to pay.

Many people are attracted to insurance bought direct because medicals and blood tests are often not required, and cover can usually be put in place with less time and effort. The downside of this is that your insurance may not be underwritten and not all your circumstances may be covered. With insurance arranged through a professional risk insurance Advisor, you gain the peace of mind of knowing what you’re covered for because you have submitted detailed information to the insurer.

Isn’t insurance too expensive?

It can also be expensive not to have it.

You need to consider the cost of insurance against the effects of illness, injury, unemployment or death.

In many cases, insurance premiums can cost less than the price of a daily coffee. Ultimately, it’s up to you to decide whether you would be able to support yourself (or whether your loved ones could manage financially) if something were to happen.  It’s worth noting that insurance costs increase with age, health risks and risky occupations. And sometimes it’s possible to obtain cover when you’re young, but if you leave it until later in life, you may not be approved for cover at all, or it may cost extra if you have developed additional risk factors such as high blood pressure or being overweight for example.

What happens if I change my mind about my insurance policy?

If you wish to cancel your insurance policy, you should check the Product Disclosure Statement (PDS) about whether you must make any payments within the first month of your policy. This varies according to which insurer you’re with, and the type of policy. A PDS should be made available to you prior applying for insurance cover that will answer this.

If your insurance question isn’t answered here, please contact us. We’ll be very happy to help.