Introduction

With premiums often running to thousands of dollars per year, whether or not to take out private health insurance is a major financial decision. Here are some of the key issues you need to consider in making that decision.

Why go private?

There are two main types of private health insurance: hospital cover, and general treatment (or extras) cover. In some states you may also need to take out ambulance cover.

Introduction

Consumer credit insurance, also called loan or mortgage protection insurance, helps you meet repayments on a mortgage, personal loan, credit card or other loan contract if you lose your job, cannot work due to illness or injury, or die. It may also cover theft of your credit card or even replacement of faulty goods you have purchased with a credit card.

It’s often sold when the loan or credit card is set up but it’s your choice, as a borrower, to decide if you want or need this cover. Many people have it without knowing, so it’s worth checking your loan contracts to see if you are covered - and what you are paying for it.

Introduction

A health crisis can occur at any time of life, but the risks obviously increase as we age. Unfortunately, due to this increased risk of illness or injury the cost of insurance for those over 50 can be high. As a result, people in this age group are tempted to drop their insurance cover altogether just when the need is at its greatest.

Introduction

Not a year goes by without some part of Australia being devastated by a natural disaster. Bushfires, floods, storms and tropical cyclones are a part of our lives. And as we’ve witnessed in recent years, destructive weather patterns and events occur regularly throughout the year, often with little or no warning. This means that any time of the year is a good time to review your insurance cover to ensure your financial possessions are protected, as well as the security of you and your loved ones.

Introduction

Research undertaken by Rice Warner in 2015 revealed that on average Australians had Life and Income Protection insurance meeting only 61% and 16% of their needs respectively. Cover for Total and Permanent Disability was as little as 13% of people’s needs.

Introduction

One of the joys in life is that we don’t know what will happen next. Most of us have positive expectations but sometimes Life doesn’t follow our lead and we’re dealt a blow. It’s how we manage each experience – or how we’ve planned ahead – that will make it either good or bad for us. These three stories could have easily turned out quite differently.

Introduction

The argument has been waged for many years - do I take out health insurance or do I invest the same amount each year and if I get sick, the money will be available (and it's earning me interest!)?
As with any type of insurance the decision is a personal one. Many people go without car, home or life insurance, thinking that the money is better spent or invested elsewhere… they are willing to take that risk. But how many of us have actually sat down and weighed up the differences between taking out health insurance or not, particularly with the government penalties on those not covered by a private health fund?

Introduction

You’ve saved hard to build your retirement nest egg. You should be able to spend the money on a well-earned relaxing lifestyle. But all this could be put at risk if your adult children don’t have their own financial affairs well managed, particularly adequate insurance protection.

Introduction

When most people think about financial planning they tend to focus on the wealth creation side of things, but often forget about the wealth protection. Building a financial plan without adequate insurance is like building a house on flimsy foundations.

Comprehensive insurance cover can be a significant expense; however these costs can be made more affordable by taking advantage of the tax deductions that apply to specific types of insurance, and to some methods of implementing insurance.