All posts in Industry News

A Tale Of Two Insurance Stories!


We have all seen movies on TV where there are two different endings to a story.  It is usually a family ghost or an angel from heaven that has been sent to show a person the consequences of their decisions in life!

There is a happy ending & a not so happy ending with the person having a second chance to go back & make things right.

This of course is make believe as in real life we sometimes only get one chance to get things right.  For some people they don’t even get this chance as an unexpected event occurs which leads to grief.

This is particularly true in relation to life insurance!

Here are two stories outlining a family scenario below, highlighting the financial impact both with & without adequate Life insurance cover!

As they also say in the movies, “the following story is based on true events”.

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Beware The Direct Insurer!


Unless you have been living under a rock for the last year or so you would be aware that momentum is starting to build in the risk insurance space.

Whether you have insurance or not, very few of you can deny the value or importance of financially protecting both yourselves & your family.

As important as it is, it has been found that only a small percentage of our population have adequate cover in place to financially protect against serious illness, injury or premature death.

The reluctancy for Australians to adequately protect themselves through personal insurance has created a huge market in the risk insurance space!

For any of you who have recently taken a sick day it’s almost impossible to watch TV without a life insurance advertisement coming on.

It’s bad enough that we have to be exposed to the horrors of such shows as ‘Ellen’ or ‘Oprah’ while we are recovering let alone tacky life insurance ads!

The bulk of these ads are created by the direct insurance providers who promote the process of quick & easy insurance.

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I Thought My Insurance Covered Me For That?


I would like to share with you a typical situation that I come across regularly working as a risk adviser in the industry.

There is nothing unusual about Mr & Mrs Jones.  Mr Jones is a self-employed electrician while Mrs Jones is a stay at home mum, primarily involved with maintaining the home & looking after the children.

Mr Jones had noticed over the last couple of months that health-wise something wasn’t right.  He booked an appointment in with his GP who referred him on to a specialist for further tests.

Unfortunately a malignant cancer was detected & even though it was still at its early stages, treatment was necessary.

The doctor confirmed that there was a very good chance that he would recover, however he would need to spend at least 3 or 4 months away from work during the treatment & recovery phase.

This news provided some reassurance medically; however their thoughts were now focused on their situation financially.

Being the sole income earner & realising that they only had savings to assist them for about a week or two, how would they meet their financial obligations?

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Do You Have A Mortgage? Young Children? Guess What …. You Need Insurance!


If I had a dollar for each time the words ‘I don’t need personal insurance’ were mentioned, I would be relaxing on a tropical beach right now instead of writing this blog.

What scares me the most is that these words are coming from people who are financially responsible for their family or business!

It’s vital that we don’t associate a lack of enthusiasm or need for insurance with a genuine belief that it isn’t necessary!  The majority of the people that I come across as an adviser are educated & intelligent.

Even so, I find myself having to paint a picture of what can go wrong in order to convince them of the benefits of personal insurance.

Here’s an example.  Mr Smith, “I take it your income or ability to earn an income is important to you right now?”  “Well yes, I need my income in order to pay our bills & go on holiday each year”.

Mr Smith, “If you got hit by a bus tomorrow what would the financial impact be on your wife & children?”  “Well … am … I haven’t really thought about it”.

“Mrs Smith doesn’t work so I guess she would have to move in with her parents as the home would have to be sold.  Our parents may also have to look after the children as I assume my wife would have to look for a job!”

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What Can A Risk Adviser Do For You?


I think by now we are all familiar or becoming familiar with the term ‘risk insurance’.

We are constantly being reminded through the media about the importance of financially protecting our income or our family.

You may feel that these messages are becoming a little repetitive, however unfortunately it’s in our best interest if we are serious about tackling Australia’s underinsurance problem.

There seems to be a lack of urgency in relation to implementing personal risk insurance.  Unfortunately this does not assist you when an insurable event occurs!

In order to take the first step in the right direction proper advice needs to be sought from a financial adviser.

Sure, you can quickly organise your cover online or over the phone through a direct insurance provider, however you won’t experience or have access to the benefits listed below let alone the quality of the cover!

So what do I actually do as a risk adviser?

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Make Financial Protection Your New Years Resolution!


Believe it or not, 2012 is nearly over!  A challenging year for many industries including the financial services industry.

Now is the time to start looking ahead to the new year with the intention of implementing the things that should have been organised in 2012!

Most people have at least one new years resolution that they hope to fulfil.  Personal goals such as lose weight or quit smoking are always up there along with many financial goals.

Improving your finances or saving for something special are common financial goals that make up many people’s new years resolutions.

As a risk adviser I would like to see a couple of other financial goals appear on a few new years resolution lists.

Two vital areas that are often forgotten or set aside include personal risk insurance and estate planning.

Even though both of these topics are dealt with separately, they are both closely linked.

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Life Insurance ….. Don’t Forget The Homemaker!


Whenever the topic of personal insurance is raised it’s natural to automatically think of the main income earner of the house.  Did you know however that it can cost up to $70,000 per year for assistance relating to your children and your home?

This is what it can cost for full time childcare or after school care, including holiday care for two children and a part time house keeper!  Looking after your children and your home is a full time job as most parents would already know.

These duties are obviously performed without pay however have you considered what would happen if an insurable event were to occur?

If a serious illness, injury or premature death were to occur, the primary income earner would have two options.

They could reduce their working hours to assist with the household and the children or they could pay someone else to do it.  Both options however come at a cost which can lead to financial stress.

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Direct Insurance ……. What You Need To Know!


Did you know that you may be paying up to 140% more for personal insurance going direct, compared to seeking experienced advice through an intermediary?

To add insult to injury the product offered through the direct channel is more than likely an inferior product.  Now I need to be careful with this article as I obviously represent the advice channel however it’s extremely difficult not to be biased.

The only real advantage that direct insurance may offer is that cover is issued faster, however surely this isn’t your main priority when organising personal insurance!

If you were looking to buy a car would you spend 20 minutes buying a lemon or would you take a week or so to compare different makes and models of cars to ensure you are happy with your purchase?

You must do your homework in relation to personal insurance as you are dealing with your financial livelihood! 

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Life Insurance Is Becoming Quicker & Easier To Apply For!


Technology is no doubt changing and continues to change at a pace that many of us are struggling to keep up with!

If you are in business today you need to be able to adapt or keep up with it all in order to remain competitive.

The same can be said about the life insurance industry in Australia.  Fortunately for consumers, the industry is bending over backwards in order to accommodate and simplify the personal insurance process.

This is an absolute must if the industry wishes to close the gap on Australia’s massive underinsurance problem.

Not only are consumers benefiting from these changes but advisers as well, so I’m thankful to be involved in the industry during such a time.

There are a number of changes that have occurred and continue to occur that have made the entire process both quicker and easier.

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Eight Vital Steps Towards Financial Protection!


The term ‘financial protection’ can be interpreted in may different ways.  In regards to personal insurance, it relates to receiving financial assistance in relation to serious illness, injury or premature death.

The topic of underinsurance in Australia is regularly discussed and this issue will continue to cause financial headaches for many people who are not properly prepared.

The eight steps listed below will not only provide guidance for you in relation to personal insurance, but also ensure that you have taken the first step towards financially protecting yourself.

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