Consequences of Underinsuring Your Home

Australia is in the midst of a bushfire crisis that will affect local communities for years, if not permanently, due to a national crisis of underinsurance. Already more than 1,500 homes have been destroyed – with months still to go in the bushfire season. Compare this to 2009, when Victoria’s “Black Saturday” fires claimed more than 2,000 homes in February, or 1983, when the “Ash Wednesday” fires destroyed about 2,400 homes in Victoria and South Australia, also in February. The 2020 fire season could end up surpassing these tragedies, despite the lessons learned and improvements in preparedness. One lesson not really learned, though, is that home insurance is rarely sufficient to enable recovery. The evidence is many people losing their homes will find themselves unable to rebuild, due to lack of insurance. We know this from interviews with those affected by the October 2013 Blue Mountains bushfires (in which almost 200 homes were destroyed). Despite past disasters, more than 65% of households affected were [...]

By |2020-01-28T11:39:45+11:00January 28th, 2020|Community Activity|0 Comments

General Insurance Information

How Your Premiums Are Calculated: Ever wondered how insurers work out the cost of your life insurance? There are many factors that can impact the premium you pay, but there are 4 factors in particular you need to be aware of. 1. Your personal risks 2. Your age and gender 3. The more protection you have, the higher the cost of your cover 4. Whether you’ve chosen to pay stepped or level premiums A number of other factors may influence your premium, including: 1. Your personal risks  Dangerous occupations can attract a higher base rate for your insurance, even before any loadings are applied. Poor health (such as a high Body Mass Index, or BMI) as well as dangerous hobbies, may add what’s called a ‘premium loading’ to your cover – which means you pay a higher premium than someone who doesn’t have those risk factors. Any loadings like these are recorded on your Policy Schedule. In terms of your health [...]

By |2019-11-13T13:58:38+11:00November 15th, 2019|Insurance|0 Comments

9 Myths about Life Insurance

9 Myths about Life Insurance Myth # 1 – Life insurance companies don’t pay claims There’s a common perception that life insurance companies will do everything they can to avoid paying claims. In fact, 92% of all life insurance claims are paid in the first instance. And OnePath Life has paid 93% of claims for policies taken out with a financial adviser during 2018. As long as you fulfil your duty of disclosure when you apply for cover, and you’re covered for the medical condition you’re claiming for, you should be confident your claim will be paid. Myth # 2 – I'm young and don’t have kids or a mortgage, so I don’t need it Life insurance isn’t all about providing for debts and dependants. It’s also about looking after yourself. Think what would happen if you became ill or disabled and couldn’t work. Would you ask your parents to bear the financial burden? Or would you rather have income protection to help [...]

By |2019-11-13T13:39:28+11:00November 13th, 2019|Insurance|0 Comments

Why Everyone Needs A Will, Especially Parents

Every now and then I come across an article which all of my clients should know about and this article from Caitlin Fitzsimmons is no exception. I totally agree with Caitlin that every parent with kids under 18 need to have a will and for good reason. Please have a read of Caitlin Fitzsimmons Why everyone needs a will, especially parents.

By |2019-03-12T11:25:39+11:00February 9th, 2017|Insurance, Tips and Other News|0 Comments
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