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There
are many risks to face on our path to financial independence.
Sickness, death,
accidents, financial hazards, such as share market fluctuations, property market
recessions, business economic cycles - all of these potential risks have the
ability to destroy your financial plans.
That
is why it is absolutely essential to incorporate risk management principles into
your financial strategy.
To
ensure that your risk management needs are handled in the most appropriate
manner, we at Direct Advisers seek the very best
assistance from providers of life insurance. Through our agencies with Sun Alliance, Colonial, Norwich
Union, Mercantile Mutual Life and our association with risk insurance
specialists, Noall & Co., we can provide personalised advice on insurance
needs when requested or simply assist with quotations and insurance
applications.
Full Life Insurance Advice Service
Direct
Advisers holds
insurance agencies in its own right as well as having a very close working
relationship with Noall & Co., who are risk management specialists.
Noall & Co. have their own unique research data base, which contains
technical information on a large number of insurance products available in the
marketplace. They also use two independent software packages which provide
information on cost, quality and insurance needs considerations. We therefore
remain in a position to provide informed professional advice should you wish to
consult with us.
Written
insurance advice and recommendations are contained in the body of a covering
letter which also provides an explanation of the reasoning and calculations used
to determine the insurance cover that is appropriate to meet your stated needs.
No Advice Life Insurance
If
you do not wish to receive personalised advice about your specific needs before
buying a policy, we are nevertheless happy to assist with product information,
quotations and lodgement of applications. In such cases you do not need to
complete a fact find. You can simply sign the No-Advice-Acknowledgement on the
Quotation Request form and return it with the application papers.
Whether
you choose our Full Life Insurance Advice Service or the
No Advice Life Insurance, we remain ready to provide all
possible assistance from the time of your enquiry through to underwriting
completion. We are available to assist at any time.
General Insurance
House and Contents
Whilst
it is critical that you have insurance against loss in regard to your property
and contents, there are several factors which need to be taken into
consideration:
Ensure
that both property and contents are insured for their full replacement values,
rather than the indemnity (or market) value.
It
is extremely important that you do not underestimate the value of your property
as in the event of a claim you would only receive a proportion of the insured
value. Be aware of any events that may not be covered, for example flood.
Any
items of significant value such as jewellery or works of art should be
separately specified in your policy.
Public Liability and Workers Compensation
Public
liability insurance protects you against claims arising from personal or
property damage resulting from an accident on your property. This type of cover
is usually included in most house insurance policies, however as legal
settlements in the event of claims can be exceedingly large, you should ensure
that your cover is adequate.
Workers
compensation insurance is often overlooked and is quite important if you have a
gardener, handyman or cleaner working in or around your home. If you are in this
situation and an injury occurs, it could be deemed that you were that person’s
employer and would thus be liable for compensation payments.
Health Insurance
The
whole area of how health care should be funded in Australia is one of ongoing
public debate with the majority of people opting to rely on the Medicare system.
The result has been that health funds have seen their membership numbers
falling, whilst those remaining in health funds have often been people with
higher health risks. The outcome has been that health insurance premiums have
continued to rise. The government has been attempting to address these issues in
a number of different ways, the most recent being the introduction of a 30%
rebate on all health insurance premiums as of January 1 1999.
Most
people are only covered under Medicare, which is partially funded by a 1.5% levy
on taxable income once income reaches a certain threshold. For a couple, the
threshold beyond which the full levy becomes payable is $24,426. Medicare pays
for the first 85% of the “scheduled fee” payable for medical services and
also pays for the full cost of public hospital treatment as long as the hospital
provides the doctor.
Health
insurance is for those people who are seeking:
| Private
hospital cover |
| Treatment
by their own doctor in a public hospital |
| Reimbursement
of medical expenses in excess of 85% of the “scheduled fee” |
| Reimbursement
of other health related expenses such as dental, optical and chiropractic
care. |
Set
out below are the issues which should be considered in regard to health
insurance
Health
fund premiums fall into two categories: hospital cover and extra cover for other
services such as optical and dental.
The
price of hospital cover is dependent upon which procedures are included or
excluded. For example, lower levels of cover may exclude joint replacement or
transplant surgery.
The
premium for hospital cover can be reduced if an excess is placed on the policy
which limits the ability to make small claims. Typically an excess can vary
between $200 and $1,000.
The
price for extra cover is dependent upon the extras that are included (such as
alternative therapies) and the limits that are placed on the claimable amounts.
Whilst
most health funds offer premium scales for individuals and families, some funds
also offer special rates for couples which are cheaper than the family rates.
The
health fund rebate of 30% should be taken by way of a reduced premium paid to
the health fund of your choice
Senior’s Health Card
The
Senior’s Health Card is available to pensioners and those people who are of
age pension age and whose income is below the defined threshold. Holders of this
card generally will not have to pay more than $3.20 for a prescription to be
filled. If more than 52 prescriptions are obtained in a calendar year,
subsequent prescriptions will be filled free of charge.
Many medical practitioners will bulk bill holders of the Senior’s Health Card.
Contact us: enquiries@directadvisers.com.au
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