As advisers, part of our job is to understand your insurance needs. We do this as part of a much broader conversation about what is important about money, to you; where you are now, and what you want for your future. Wealth protection is something that can be critically important, depending on your stage of life, your debts and whether you have dependents. The amount of cover you may need depends on your personal risk and your personal values.
Got any insurance questions in mind? Don’t hesitate to contact us. Get in touch.
What does a financial planner do to help with insurance?
When you work with us, it is likely we will assess your needs and make recommendations. But that is really only the beginning of what we do to help our clients and families with wealth protection. We are also here should you be unlucky enough to need to use the insurance policy. This is called a “claimable event”. And it can be surprising to hear that we have met a number of people over the years who had experienced a claimable event, but not used their policy to receive the payments they were owed. Read about one of those examples in our story about Paul, who is finally happy for the new day ahead.
What determines a claimable event can be difficult to understand, which is why we are here. We have helped numerous clients.
- Matters of the heart: The Sanderson’s are a healthy and active family. Craig is very grateful, however, that their adviser had set them up with appropriate insurance cover before he experienced a heart attack. Upon reflection, Craig says, “our insurance cover gives us tremendous peace of mind for our family into the future if something were to occur. I take comfort in knowing there would be sufficient cover in place, cover I would not otherwise have been able to take up having recently been diagnosed with a heart condition. And it’s all thanks to receiving Steve’s professional and correct advice a number of years ago.”
- The snowboarding safety net: Dwayne is a young, loving father of two gorgeous girls and a builder by trade. When he was injured snowboarding, his family remained comfortable and secure knowing income was still coming in through an Income Protection Insurance policy their adviser Steve had set up.
- Losing life’s great love: Nothing can prepare a family for losing a wonderful father too soon, for Tracy, there was some comfort knowing that losing her husband wasn’t going to mean financial instability. In her words “I know that the grief of losing your loved one is a heavy enough burden to bear without the added weight of financial worries.”
What is the chance of my needing to use insurance?
In the 2018 Insurance Barometer Study by Life Happens and LIMRA, it was found that 1 in 3 families admit that a financial disaster would be more than likely, if not absolutely, within a single month should the household’s breadwinner suddenly pass.
Research conducted by Zurich identified some odds of needing insurance:
- 1 in 3 Australian Men and 1 in 4 Australian women will be diagnosed with cancer by the age of 75. The lifetime cost of cancer to an individual is on average more than $100,000
- Every 10 minutes, an Australian suffers a heart attack
- You have a more than 60% chance of being disabled for one month during your working life, and a1 in 3 chance of being disabled for more than three months.
- There is a one in 52 chance that one of two business partners would die or become totally disabled before 65
Do insurers really pay claims?
Research from 2012 reports that an average of $15.9 million was paid in claims every day to 171 Australians and their families. In 2017, AMP paid 11,705 people $1.112 billion dollars in insurance claims. That’s $3million every day. The average age of the claimant was 52 years, and 24.7% of the claims were for those aged 40-49.
What should I do if the worst happens?
Should you experience one of those things that we hope never happens, here are some tips to navigating what comes next:
- Ensure you premiums are always paid on time – if you have lapsed you may not have the cover you think you do
- If you bought your insurance with an adviser or are working with one, get in touch straight away and they can help you navigate the claims process
- Filing your claim quickly can be important, but there can also be ways to put a claim in even if a long period of time has passed
If you think may have experienced a claimable event or are unsure of the insurance cover you have and want help understanding that, get in touch. We are here to help you make sense of it all and ensure you have the right policies in place for your situation.
If you want to learn more about how you can plan to make the best future for you get in touch with the financial experts at Invest Blue today.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.