Month: July 2017

The decision to take out life insurance is a very important one, and one that shouldn’t be taken lightly or made on the spur of the moment. Whether you’re considering term life, income protection, TPD or trauma insurance, it’s essential that you talk to a professional and independent life insurance adviser beforehand to get a full understanding of your various options.

With a little bit of legwork and some expert advice, you can get the valuable peace of mind and financial protection you and your family deserve. Here are the 10 most important questions to ask your adviser to make sure that they – and the cover they can provide – is right for you:

 

#1: What type of life insurance should I choose?

There is a range of different life insurance options available including term life, income protection, total and permanent disability, and trauma insurance. The benefits, features and costs of each will vary, and the type of cover you choose will depend on what you need from your policy.

A good insurance adviser will explain the different types of policies available and help you compare their benefits and costs, to decide which one is best suited to you and your family.

 

#2: How much cover do I need?

Like with the type of cover you choose, the amount of cover you decide on will depend on a variety of factors such as your lifestyle, financial commitments, future plans and personal circumstances.

Everyone’s needs will be different so there is no standard answer to this question, but your adviser should help you determine the appropriate amount of cover by thoroughly assessing your income, assets, liabilities, lifestyle and circumstances both short- and long-term.

 

#3: How much will my cover cost?

Again, this will depend on the type and amount of cover you want. While the cost is a very important factor when choosing insurance, you need to make sure you also take into account the features, benefits and limits of the policy in relation to its price to work out whether you’re getting good value for money.

 

#4: What sort of discounts are available?

Many people aren’t aware you can even ask for discounts, but a lot of insurance providers do offer specific discounts for eligible clients such as those in a particular age group, on a group policy, or who have paid the policy in full.

It may require a few adjustments to your policy, but it can be well worth talking it through with your insurance adviser if it means saving on the total cost of your cover.

 

#5: What is not covered in the policy?

Don’t overlook the importance of exclusions – it’s vital that you go through them in detail with your adviser to make sure you completely understand what is and isn’t covered under the plan you are considering.

Not only will this save you a lot of time and heartache in the future if you do need to claim, but it also ensures that if you need something specific covered now or in the future, then you’ll be able to get the right cover from the beginning. 

 

#6: How do you handle my claims?

The claims process will vary between providers and policies, so it’s worth finding out what the process involves. Ideally, you’d like one that’s simple and straightforward, and that your insurance adviser can either take care of for you or can help you through.

Understanding the complexities and intricacies of insurance law and making a successful claim is your adviser’s specialty, and they should be able to discuss all the finer details with you as well as make it easy to claim if the need arises.

 

#7: What are my guarantees?

For insurance policies such as term life, income protection, TPD and trauma insurance, there are some aspects that policies are guaranteed to cover. For example, some policies are guaranteed to remain at a steady rate despite any changes in the economic market, while some may be affected by any changes to your health, income or lifestyle over the period of your policy.

Ask your adviser about these beforehand to make sure you won’t be hit by any unexpected rate rises or changes to your premiums or deductibles.

 

#8: What are the policies for adjusting rates?

In a similar vein to guarantees, it’s important to find out what your provider’s policy is on rate adjustments. Some providers won’t inform customers when the rate changes, and while you probably won’t notice if the rate goes down, you’ll certainly notice if it goes up.

To avoid getting caught out by a surprise rate increase, find out what the policies are about premium adjustments before you commit to cover.

 

#9: When does the cover start?

It’s always a good idea to check with your insurance adviser about the exact date that your cover starts, so you know when you’re being covered from. In some cases, there can be a delay between signing the policy and when the cover actually starts.

 

#10: What happens if I can’t pay?

If something were to happen in the future and you suddenly weren’t able to meet your life insurance payments, you need to know what your options are. Many insurance providers will have some sort of contingency plan in place, such as an option for income protection insurance together with your life insurance to help you pay your bills if you suddenly lose your income.

Whatever you choose to do, just remember that losing a policy that you’ve been paying into for several years – or even decades – can be a huge financial loss. So being prepared for the worst is never a bad decision; find out what your options are and don’t be afraid to ask more questions.

While there are numerous other questions worth asking your insurance adviser before you commit to a particular policy, these are the most important. Your adviser is there to help you secure your family’s future, so make sure you take advantage of the service to get the cover that’s right for you. 

Check out our Frequently Asked Questions or get in touch with one of our insurance advisers for yourself to find out more about the comprehensive service we provide to help you make sure you’re getting the right cover.

With so many providers, products, features and pricings on the market, it’s no wonder that many Australians question whether they can get a better deal on life insurance.

Chances are, you can get the life insurance products you want for less than you’re currently paying.

If you’ve repaid your mortgage, the kids have left home, you’ve got a healthy amount of savings tucked away or the dangerous past times you used to engage in have stopped, you may not need the same level of cover you once required.

Or, if reducing day-to-day expenses is your goal, there are ways to save money without having to abandon your policy or settle for less cover than you need (after all, if you’re struggling now just imagine what it will be like for your family if you pass away and you’re underinsured!).

Whatever your reasons for wanting to reduce your life insurance premiums are, saving money without having to compromise on the quality of your life insurance products is entirely achievable.

Here’s how:

 

Consolidate Your Super Insurance

If you have life insurance already included in your superannuation, consider consolidating this cover with your current life insurance fund. Combining covers will save money that you would otherwise be spending on unnecessary fees and premiums.

 

Compare Your Current Policy

Talk to an insurance adviser to see if you are getting the best value for money with the life insurance you already have. Chances are, you may be holding on to a policy that is:

• Outdated and no longer reflects the level of cover you require
• Charging uncompetitive rates/li>

If you’re healthy, there’s no reason not to make the switch to a provider offering better value – even if it means taking another medical examination.

 

Opt for a Longer Waiting Period

If you have income protection insurance, the amount of time you must wait before being eligible to claim on your policy is known as the waiting period. If you are in a position to financially support yourself for a period time in the event of you losing your income through illness or accident, it is cost effective to extend the waiting period on your policy, as this will reduce your premiums.

The reason for this is that a longer waiting period gives the insurer less chance of having to make minor payouts over the life of your policy. Consider: with a 14-day waiting period, you must be completely off work for 14 days before you are eligible to make a claim. Once this 14 day period has expired, if you meet the remaining conditions of your policy you will be eligible to receive a benefit payout for as long as you continue to meet these conditions; effectively, as long as your are still prevented from working by your disability. The same applies with a 90-day waiting period.

However, it is much more likely that you will become disabled and off work for a period of, say, 30 days whilst you recover from some injury (and thus be eligible to claim for two weeks’ income replacement) than it is that you will be off for three whole months and be eligible to claim before going back to work. In this sense, whilst the insurer will still pay your benefit in both cases if you are permanently disabled, this risk to the insurer of having to pay temporary benefits is greater the shorter your waiting period. Accordingly, premiums cost less.

Income Protection insurance is designed to provide you with an ongoing benefit if you lose your income due to illness or accident. If you are in a financial position to provide for yourself for three months should you be unable to work due to disability, a 90-day waiting period will be an effective way of reducing your premiums and therefore the total cost of your insurance.

 

Work on Your Health

Along with your age, your physical health is one of the biggest factors determining how much your life insurance policy is going to cost.

If you can demonstrate that your health has radically improved since your initial medical assessment, you may find yourself with a more appealing risk profile that warrants a decreased premium.

Ways that you can adjust your lifestyle and save money on life insurance include:

• Quitting smoking: You can apply for life insurance that’s charged at the standard rate at least 12 months after your quit date.
• Reducing or eliminating alcohol consumption: If you can show that your drinking habits have permanently changed for the better, you may be bumped down a risk category.

Losing or gaining weight: Working on your fitness so that you fall within a healthy BMI category and then maintaining that healthy weight is one of the best ways to secure lower premiums.

 

Get Covered While You’re Young & Lively

When it comes to buying life insurance products, the biggest mistake you can make is waiting until you’re older to get covered. Applying while you’re young and healthy will give you the best chance of securing a lifelong policy that costs the “standard” premium rates.

 

Enquire About Pausing Premiums

If for any reason, you are experiencing severe financial hardship and cannot afford to pay your life insurance premiums, the first thing you should do is talk to your insurer about temporarily pausing your payments.

Most insurers allow their clients a few months over the life of their policy wherein they can “pause” their premiums. Or, sometimes insurers give their customers the option of “freezing” the cost of their premiums in return for a reduced amount of coverage.

Enquiring about these grace options could mean the difference between getting enough monetary breathing room to keep your policy and letting your policy lapse and losing the lower premium rates you were able to attain by obtaining coverage at a young age.

 

Swap Your “No Medical” Coverage

Chances are, if you opted to get “no medical” coverage when you first bought your life insurance, you are paying an exorbitant premium for the pleasure. You’re better off just biting the bullet, getting the medical examinations required by a competitive policy out of the way, and enjoying the thousands of dollars you’ll be saving later down the track.

 

Ask for Advice

Most people are not experts when it comes to navigating the complex world of life insurance. If you need help understanding which options will work best for you, then you’ve got nothing to lose by picking up the phone and calling an adviser.

Our team of life insurance advisers understand the different underwriting guidelines each of our premium partners uses, and can help you compare life insurance policies to find one best suited to your needs. These underwriting guidelines are how insurers determine how important various risk factors are. For instance, some insurers will place sufferers of all types of heart problems in the “high risk” category whereas others will look at heart issues on a case-by-case basis and determine the risk category according to an individual’s particular prognosis.

Because each insurer will assess a person differently, getting advice from an experienced industry professional could end up saving you thousands of dollars over the rest of your life, and put your family in a better financial position when you pass away or if you find yourself with serious medical problems later on in life.

If the thought of tackling a lengthy application process is putting you off applying for life insurance, we understand your struggle. It can be overwhelming if it’s your first time purchasing a life insurance policy. But there’s no need to stress; we’re here to help!

We want to explain the application and assessment process in simple terms. By giving you a better understanding of the processes in place, why they are there and what they achieve, we hope you will feel more confident about approaching us at Cover Australia for a life insurance quote.

 

How do I Receive Life Insurance Advice?

It is always important to start your life insurance journey by seeking advice from an experienced adviser. Then once you’ve chosen a life insurance product, your adviser will guide you through the application process.

Life insurance advisers are experts in the industry and know all the ins and outs of getting you the best deal and the most comprehensive cover for your specific needs. An adviser can talk you through the application process, informing you about the steps you need to take, the information to be provided, and the process involved to get you covered.

Don’t feel like you are going at it alone. By having a knowledgeable adviser by your side throughout the process, you’ll always have someone to turn to if you have any questions about the application process and the cover itself.

 

How do I Lodge an Application?

The first step you need to take to obtain life insurance cover is to submit an application with a life insurance provider. Once the application is submitted, assessments will then take place.

Depending on the details you will be asked to provide, there are three different ways an application can be lodged:

Your adviser can submit your application answers directly on your behalf

You can answer application questions over the phone

You can fill in a physical application that your adviser will submit on your behalf

 

What Information do I Need to Provide in an Application?

To ensure the insurance provider can accurately assess your eligibility for life insurance, a number of documents are often required. Depending on the insurance provider and level of cover you choose, the information you may need to deliver includes:

• Age
• Gender
• Residency
• Occupation
• Medical history
• Sports and rectional pastimes
• Financial status

It’s always important to be honest about your personal details and medical history so you can receive an accurate assessment and an outcome that correctly reflects your needs and situation.

According to Bankrate, a two-year contestable period is included with most standard life insurance policies meaning that the policy can be withdrawn by the insurance company if it’s found that you lied on your application.

 

How am I Assessed for Life Insurance?

An underwriter is responsible for evaluating life insurance applicants, and it is their job to determine the level of risk associated with the person applying for the cover. To do this, your personal details and medical history are evaluated and carefully considered to decide on the conditions and pricing that will be applied.

Underwriting is necessary for most life insurance policies, however, it’s not required for default life insurance options provided by workplace schemes and superannuation. According to TAL, their life insurance underwriters along with all others aim to arrive at a conclusion that is fair to the individual as well as the pool of funds needed to cover the risks.

It’s crucial for an underwriter to assess your situation correctly and give you a good deal on your premiums while also not causing any monetary loss to the insurance company. After all, if the premiums are too high, the customer could easily get insurance from a competitor offering a better deal.

 

What Can I Expect from the Assessment Process?

The whole point of your life insurance assessment is to determine how long you’re likely to live according to current medical history and at what point in time a claim is likely to be made. The insurance company wants to ensure they can get enough back from you in premiums before paying out a claim on your policy.

Here’s a quick overview of how each area is likely to be assessed:

• Age: One of the major factors contributing to your premium is your age. Younger people are valued as lower risk, therefore, their premium will be lower than older people.
• Health:If you’re currently in good health, you will be seen as a lower risk. If you have an unhealthy lifestyle or experience regular illness, it’s to be expected that you will receive a higher premium.
• Family History: If you have a family history of serious diseases or illnesses, it’s possible that you will be placed in a higher risk category when being assessed.
• – Work and Recreation: If you work in a hazardous career where there is a risk to your health and wellbeing, your occupation will have an impact on your premium. This is also the case if you regularly take part in recreational activities where there is a possible risk to your life, such as extreme sports.

 

Medical Assessments

When applying for life insurance, depending on the amount of cover you are requesting, medical examinations are often required to provide an accurate assessment and gain a precise depiction of your health status.

According to finder.com.au, an underwriter may request a medical report from your doctor or conduct a medical examination if you have been inflicted with a medical condition such as:

• Chest pains
• Lung disorders
• Chronic indigestion
• Hepatitis
• Mental illness
• Epilepsy
• Kidney, liver or bladder disorders
• High blood pressure and heart troubles
• Diabetes
• Bronchitis
• Cancer or malignant tumours

It is possible that a previously unknown medical problem could be identified after your medical assessment. If this occurs, the insurance company will notify you if any unusual test results occur along with information about how it will affect your life insurance application.

According to Asteron Life, depending on your age or life circumstances, you may be able to avoid medical tests altogether. If you’re under the age of 45, have no current health problems and are hoping to apply for up to $2.5 million of life insurance cover, for example, you are unlikely to need a medical assessment.

 

Why are Life Insurance Assessments so Involved?

The life insurance sector is heavily regulated in Australia. As explained by TAL, after your cover has been accepted and the insurance policy has been issued, an insurer is unable to cancel the policy or increase the price in relation to the policyholder’s health deteriorating.

The insurer can only fully assess this risk once, which is why the assessment process is so involved at the beginning. So with this in mind, it’s always best (and more affordable) to take on life insurance while you’re young and healthy to ensure you receive the best premiums and coverage possible.

 

What are the Outcomes?

Once your assessment is complete, you will be informed of the outcome in writing. If your application has been accepted, you’ll also receive a policy schedule from the insurer outlining the cover included and the dollar amount for the first premium due.

The outcome will vary depending on the results of your assessment. The possible outcomes from your assessment are as follows:

 

Tips for a Successful Life Insurance Application from our Premium Partners

Keep in mind that the application process and the information required can vary slightly between insurance providers. To help you on your journey towards protecting your loved ones with life insurance, our premium partners at Cover Australia have shared their ultimate life insurance application tips.

These tips come direct from our insurance providers and will be invaluable for you when seeking out a policy that suits your needs at a price you’ll be pleased with.

 

Life Insurance Application and Assessment from Cover Australia

At Cover Australia, not only can you compare insurance policies with us, but you can also receive trusted advice from qualified advisers who are more than happy to guide you through the life insurance application process.

Cover Australia’s platinum partners are industry leaders when it comes to providing comprehensive cover and fair assessments at a price our customers love. If you’d like to get a quote for life insurance with us at Cover Australia, visit our website and speak with an adviser to initiate the application and assessment process right away.

Are you reassessing your finances now that life is starting to slow down? In your 50s and 60s (and beyond), life insurance may seem like an unnecessary extra expense – especially with premiums getting higher as you get older.

But the fact of the matter is, no matter how old you are, life is always going to be unpredictable. Whether you’re 20 or 60, there’s no way of knowing what’s going to happen and the best you can ever do is be properly prepared for the unexpected.

If you have a family that you don’t want to burden with debt, a partner who depends on you, or a legacy that you want to leave behind, it’s important to take steps to secure their future and their livelihood. And life insurance is designed to do exactly that.

There are life insurance options available for every stage of your life, including as you move towards retirement. If you’re between 50 and 75, you’re eligible for senior’s life insurance – a tailored insurance product for those in their older years, who have very different needs and motivations to the younger generation of Australians.

Still not convinced? Read on below to weigh up all the benefits!

 

The Benefits at a Glance

Financial protection is more important than ever as you get older. Not just for the family and loved ones that you’ll one day leave behind, but also for the assets and investments that you’ve worked so hard your whole life to accumulate.

Here’s why baby boomers should be taking out (and keeping) their life cover:

 

Securing the Best Value Cover

Are you concerned about the cost of senior’s life insurance? While you can’t avoid premiums getting higher as you get older, there are still plenty of ways that you can cut the cost of your policy and make it more affordable on your budget.

 

What if my Application is Refused?

Unfortunately, as you get older you become a higher risk for insurance providers, and there is a chance that your application may be refused. This can be because of a number of reasons, such as your health or any existing medical conditions, a dangerous occupation, and whether or not you smoke.

If this happens, it’s important not to be discouraged because there are still options available to you. You can apply with a different provider, or request a reassessment of your application where you may be required to provide additional information.

Going through an independent insurance adviser is also a great way to make sure you’re aware of all your options and are guided through the application process with the best chance of a favourable outcome.

 

Financial Security for Every Stage of Your Life

Life insurance is not just for the young. No matter what stage of your life you’re in, being properly protected and securing your family’s future is an invaluable asset to have.

If you’re over 50, life cover is more important than ever. Life may be slowing down, but your financial obligations will still be there – take the necessary steps to protect your family and investments today.

When it comes to living a long life, Australians will be glad to know that they have a higher chance at this than many other people around the world. Australians are among the longest living people in the world, with an average life expectancy of 82.15 years as of 2015 (the 13th highest in the world according to the CIA World Factbook).

With that said, this doesn’t mean you should let yourself go and not take care of yourself. Life expectancies, after all, are just that – estimates and expectations.

If you want to live a long life and have a shot at meeting the estimated Australian life expectancy, then you have to make sure you live healthy and constantly improve your lifestyle.

There are several ways to do this, but here are five small, simple ways to make a positive impact in your life:

 

1. Eat more fruits and vegetables

By now, it’s practically common knowledge that eating plenty of fruits and vegetables is good for you. But many still fail to do this consistently (or do enough of it) that it’s always worth a reminder. Several studies over the years have shown that eating more fruits and vegetables is good for you. So there is hardly any doubt about it now: if you want to live longer, add more fruits and vegetables to your diet.

But you don’t have to become a vegetarian to enjoy its benefits, either. You simply have to eat more of it and much more regularly. In fact, the Australian Department of Healthrecommends at least 2 servings of fruit and 5 servings of vegetables per day for adults – an amount that’s not too difficult to achieve.

 

2. Consume less meat (especially red meat)

One common trait among people from countries with the highest life expectancies is that they don’t usually consume a lot of meat. For many people, consuming less meat (especially red and processed meat) goes hand-in-hand with eating more fruits and vegetables, so it’s often a natural transition.

This bodes well for those who decide to do this because research has shown that higher consumption of red meat may lead to a shorter life.

Similar to adopting more fruits and vegetables, you don’t have to take it to the extreme and abstain from meat altogether. Aim for moderation instead, eating smaller portions and less frequently. You could also try substituting red meat and processed meats with other sources of protein like fish, poultry, beans, and legumes.

 

3. Get moving

It’s no secret that staying active is essential to a healthy lifestyle. Not only does exercise and physical activity help you feel younger, it also makes your body stronger and more resistant to ailments and diseases.

One recent studypresented at the European Society of Cardiology showed that moderate and regular exercise could slow down ageing and increase a person’s average lifespan. According to Sanjay Sharma, a professor of inherited cardiac diseases at St. George’s University Hospital in London, exercise can add as many as 3 to 7 additional years to your life. Not to mention it could help prevent the onset of dementia, which is one of the leading causes of death in Australia.

Even better news? You don’t have to be a marathon runner or a gym rat to get the benefits of exercise. The study also shows that just 25 minutes a day of moderate physical activity can have a hugely positive effect on our bodies.

 

4. Spend time with good company

When it comes to living a long life, relationships truly matter.

Research suggests that the more meaningful relationships you have in your life, the longer you’re likely to live. One study by researchers from the University of Cambridge showed that those with stronger social relationships in their lives were about 50% more likely to survive than those with weak social relationships.

This study is consistent with the findings of another study by researchers from Brigham Young University, which showed that social isolation and loneliness can be precursors to early death.

So spend quality time with family and friends, and you’ll be on the right track.

 

5. Get enough sleep (but not too much)

Sleep is one of the best ways our bodies rest, so it’s only natural to think that the more sleep you get, the longer you’ll live. This assumption, however, isn’t always true.

One 2002 study from the University of California in San Diego suggested that those who slept eight hours or more were more likely to die than those who slept around 6.5-7.5 hours a night. A 2015 study from the University of Sydney, meanwhile, has shown that oversleeping (i.e. nine hours or more per day) can be a significant risk factor, especially when coupled with a highly sedentary lifestyle.

So how much sleep should you get?

Although there’s no single right amount of sleep for everyone, experts seem to agree that around 7 hours may be the sweet spot. So aim to get at least 7 hours of sleep every night.

As these tips show, improving your life to live longer doesn’t always require massive life changes. By making simple, positive tweaks to your lifestyle, you can effectively increase your chances of living longer.

Mortality is always a hard topic to discuss. Whether we like it or not, death is something that we all have to face, and although it’s a subject many of us try to avoid, it’s something we all should be planning for.

To paint a clear picture of death in Australia, we have rounded up the most recent Australian statistics from across the internet. By compiling this data together, we can get a better understanding of the risks we face in life and learn about how we are most likely to pass away.

This information should also prove to be a great resource for anyone looking to the future and hoping to plan out their life insurance policy to protect their family after they pass away.

 

Putting Death into Perspective

Before we get started on the topic of death, let’s look at something a bit more positive – how long we are expected to live.

According to 2013 statistics from The Australian Bureau of Statistics (ABS), life expectancy has continued to improve over the past ten years.

In 2013 the median age of death was:

• 78.4 years – Male
• 84.6 years – Female

The life expectancy is expected to improve even further for future generations.

A person born between 2011 and 2013 is expected to live:

• 80.1 years – Male
• 84.3 years – Female

 

Total Deaths in Australia

The most recent ABS statistics from 2014 show that in Australia there were 153,580 total deaths.

• 78,341 deaths were male
• 75,239 deaths were female

 

Common Causes of Death

When understanding the causes of death in Australia, we first have to look at the leading causes of death. This paints a pretty clear picture of how Australians are most likely to pass away.

According to 2014 ABS statistics, the leading causes of death in Australia attributing to 1/3 of total deaths are:

It’s also very common for people to have multiple causes of death. In 2014, there was an average of 3.3 causes contributing to death and 61.3% of deaths reported having three or more causes.

 

Death by Age

Although heart disease is the leading cause of death for the Australian population as a whole, the most common causes of death vary significantly depending on age.

The leading cause of death for the 15 to 44 age group is:

• Intentional self-harm (suicide)
• Accidental poisonings such as drug overdoses
• Land transport accidents

45 to 74 year-olds are more likely to die from:

• Heart diseases
• Lung cancer
• Chronic lower respiratory diseases

Anyone who is 75 and over is most likely to die from:

• Heart diseases
• Dementia including Alzheimer’s disease
• Cerebrovascular diseases

 

Cardiovascular Disease

The Heart Foundation shows that in 2013, 43,603 deaths were attributed to cardiovascular disease (CVD), which includes heart diseases, strokes and blood vessel diseases. CVD made up 30% of deaths in 2013 and one in six people are affected by this disease across Australia.

The leading cause of death from cardiovascular disease is heart attack. 54,000 Australians suffer a heart attack every year resulting in 8,611 deaths in 2013.

The threat of heart disease will not be going away anytime soon and is predicted to continue being a leading cause of death in Australia.

 

Cancer Deaths

According to Cancer Australia, in 2012, 43,039 deaths were caused by cancer in our country with a projection of 46,570 deaths in 2015. This means that cancer has recently overtaken cardiovascular disease as the leading cause of death in Australia.

Cancer has resulted in 212 deaths per 100,000 people for males and 134 deaths per 100,000 for females in 2014.

AIHW statistics show that 123,920 new cases of cancer were diagnosed in Australia in 2014. Cancer also contributed to 16% – 19% of total deaths in Australia.

The most common cancer deaths for men in 2014 were:

• Lung – 5,150
• Prostate – 3,390
• Colorectal – 2,210
• Pancreas – 1,360

The most common cancer deaths for women in 2014 were:

• Lung – 3,480
• Breast – 3,000
• Colorectal – 1,910
• Pancreas – 1,280

Thanks to increased awareness and improved treatment options, the mortality rate due to cancer has declined over recent years. Cancer Australia shows that there is now a 67% survival rate for cancer and it’s hoped that continued cancer research will further improve the survival rate in the future.

 

Suicide Deaths

Suicide is, unfortunately, an increasing problem in Australia. Statistics from Fact Check have revealed that seven Australians commit suicide every day.

Recent ABS statistics show that 2,522 people committed suicide in 2013 compared to 2,098 in 2004. Therefore the suicide rate has increased by 20% over the last 10 years. This figure could even be higher than reported according to a 2010 senate inquiry, due to uncertainty surrounding coronial inquests resulting in suicides being under-reported.

The suicide rate is higher than the rate of road deaths and unlike road fatalities and homicide, the number of people taking their lives continues to increase.

 

Road Deaths

According to Australian Government Department of Infrastructure and Regional Development statistics, 1,156 road users died on the roads in 2014.

The number of fatalities on the road in Australia consists of:

• 535 drivers
• 229 passengers
• 152 pedestrians
• 192 motorcyclists
• 45 pedal cyclists

The age group with the highest death toll is 40 to 64 with 362 deaths followed by 252 deaths in the 26 to 39 age group.

When dividing these statistics by gender, males are far more likely to be killed on the road than females with 824 men and 331 women passing away on our roads in 2014.

In more positive news, the annual road toll rate has declined by 39% over the last decade and is currently at the lowest rate on record. Therefore, the chance of being killed on the road is dropping thanks to enhanced safety features in cars and the enforcement of road rules.

 

Homicide Deaths

Australia has a low homicide rate compared to the rest of the world. The Homicide in Australia 2010 – 2012 report shows there have been 243 incidents of murder recorded between 2011 and 2012. Among the 243 incidents, 511 people were killed.

Here are some more insightful statistics about homicide in our country:

• 39% of homicides were classed as domestic
• 36% of homicides were carried out by acquaintances
• 58% of these deaths were caused by the intimate partner in domestic cases
• 70% of these murders took place at residential properties

The three highest causes of death by homicide include:

• Stab wounds – 187 deaths
• Beatings – 125 deaths
• Gunshot wounds – 69 deaths

30% of the victims were aged between 35 and 49 and 21% were 25 to 34 years of age. 85% of the offenders in all homicide cases were male.

On a more positive note, the homicide rate continues to decline in this country with Australia currently seeing the lowest murder rate since records began.

 

Alcohol Deaths

There is a continuing drinking culture problem in this country that has ultimately lead to a high number of alcohol-related deaths.

The Alcohol’s Burden of Disease in Australia Report by VicHealth shows that there were 5,554 alcohol-related deaths in Australia in 2010.

According to these statistics, the conditions resulting from long-term and excessive consumption of alcohol ultimately leading to death include:

• Cancers
• Digestive diseases
• Cardiovascular diseases
• Infections and parasitic diseases
• Injuries
• Neuropsychiatric diseases

Cancer and cardiovascular diseases are considered to be the leading result of alcohol deaths. For more information on alcohol-related deaths, take a look at this article from ent wellbeing providing an informative summary and infographic on the topic.

 

Death by Drowning

There’s no doubt that Australians and tourists alike love taking advantage of our beautiful beaches and waterways during summer. Whether it be the ocean, river, lake or a pool, it’s important to stay safe as there is a risk of drowning in any body of water, especially if a person doesn’t know how to swim.

A report conducted by Royal Life Saving in 2014 has shown that there have been 735 drowning deaths over a 10 year period between 2002 and 2012. The highest instances of drowning were in rivers.

The state with the highest rate of drownings is New South Wales with 246 deaths, followed by Queensland with 219 deaths over this period. Alcohol was also involved in 37% of these cases.

 

Potentially Avoidable Deaths

Data shows that many deaths in Australia could have been avoided if appropriate preventative measures and treatment options were taken.

ABS statistics show that there were 26,283 preventable or treatable deaths in 2014.

The major examples that fall into this category include particular types of cancers, infections and intentional injuries, just to name a few.

This is why it’s important to keep up with your regular health checks, lead a healthy lifestyle and minimise taking part in dangerous activities where there is a risk of death.

 

External Causes of Death

The ABS shows that 9,136 Australians died of external causes in 2013.

The three leading causes of external death are:

• Accidental deaths – 5,867
• Intentional self-harm – 2,522
• Assault deaths – 216

The top three ways death occurred in this category are:

• Falls – 2,055
• Poisoning – 1,724
• Hanging – 1,608

 

Deaths Around the Home

We all consider our home to be a safe haven, but accidents can happen in our very own home that can lead to death. This article from news.com.au provides an excellent summary of common threats to your life that you’re likely to encounter in your home.

This article and further ABS statistics show that in 2011:

• 715 people died from slipping, tripping and tumbling
• 58 people died from falling out of bed
• 26 died after falling off a chair
• 34 died falling from a ladder
• 59 died from choking on food

 

Other Causes of Death

Some other causes of death worth pointing out from 2011 ABS statistics include:

• 99 people died in water transport accidents
• 26 people died after being struck by thrown, projected or falling objects
• 27 people died from being caught, crushed, jammed or pinched between objects
• 81 deaths from exposure to smoke, fire and flames
• 26 people died from flood waters

 

Life Insurance to Cover Your Family after Death

When considering all of these statistics, it makes you realise how truly fragile life is and how your death could impact on your friends and family. Although we can’t control how and when we will pass away, we can be prepared when the time comes by ensuring we have life insurance in place.

Contemplating death is a little too existentially morbid for most of us on a day-to-day basis. However, giving some thought to the financial situation of your loved ones if and when you do die can ensure that they are not left with significant debts or are unable to continue to support their standard of living. At a time when your family will be overcome by grief, life insurance can provide financial stability to help your family manage. Knowing that your family will be provided for in the event of your death is a way to give yourself peace of mind in the present.

Many Australians may not realise that most life insurance policies cover the most common causes of death, so there is really no excuse not to protect your family by taking out a life insurance policy. Stay a few steps ahead and prepare for your eventual death by visiting Cover Australia to get a quote on a life insurance policy.

Step 1: Decide What Kind of Life Insurance You Want

Gone are the days when life insurance was simply a way to pay your family a lump sum when you pass away. These days there are dozens of types of life insurance on the market, from your basic term life insurance through to TPD, income protection and trauma insurance.

An overview of all the types of insurance on the market would take days to read, so we’ve written a brief guide to the four main types of life insurance Australians need:

 

Step 2: Choose Your Insurer

Getting a life insurance quote is easier than ever. You don’t even have to pick up the phone!

To get an idea of the cost of cover, simply use our live online quote calculator. All we need to know is:

• The types of cover you’d like
• The amount of cover you are interested in
• A few personal details (age, gender, smoking status and occupation)

Alternatively, if you’d prefer to speak to a real person you can just fill out our “Get A Quote” section and one of our expert advisers will call you to discuss your coverage options.

 

Step 3: Apply For Your Insurance

Applying for life insurance is an easy, straightforward process. Below are a few common questions about applying for cover:

 

Step 4: Make a Claim

Unlike most life insurance comparison websites, Cover Australia aren’t just here to help you choose the insurer that’s best for you; we also offer ongoing support if and when you need to make a claim.

Our office is licensed to handle your claims from the initial claim through to the day you are paid out, and we have over 35 years of industry experience. This means that, with us, you’ll be able to get the money you need as quickly as possible, so you don’t have to experience any extra stress and hardship.

Making a claim involves:

• Completing a claim form and returning it to your insurer for assessment
• Making sure you lodge your claim within the time frame specified in your policy
• Providing any additional information the insurer requires. This could include the results of medical testing, statements from medical professionals, or answers to specific questions.

Have you avoided adding life insurance to your to-do list? Many Aussies are in the same boat and put off buying life insurance because they think it’s too expensive, but in reality, life insurance can be much more affordable than most people realise.

When you think about it, protecting the financial security of your family should be a priority for everyone. And when you consider the actual cost of life insurance, you will soon realise that it’s not as out of reach as you may think.

 

How Much Does Life Insurance Cost?

To give you an idea of how much life insurance will cost, we have entered some basic information into the get a quote section of our website to provide you with the cheapest premiums currently available for different demographics.

Our results have shown that life insurance can be obtained for as little as $23 per month which is an outstanding price to pay when compared to other living expenses.

We’ve summed up the lowest amount you are likely to pay for life insurance in the table below:

*Please note that all quoted premiums are stepped and subject to underwriting

Doesn’t look so bad, does it?

Please keep in mind however that there are a number of different factors that affect the premium you will have to pay, but in general, this is a pretty good benchmark to go by. All premiums are also stepped and subject to underwriting.

Now let’s compare this with other typical expenses you are likely to pay in your day-to-day life. You may be surprised to find how many everyday tasks end up costing a lot more than a life insurance policy.

 

Running and Maintaining Your Car

We all know how expensive it can be to drive and maintain a car. According to statistics obtained from RACQ, the average weekly cost of running a medium sized vehicle is $225.

And then you also have to add on the cost of car registration. Depending on what state you live in and what vehicle you drive, the cost to register your vehicle can range from $200 up to $800 for 3 years.

But the costs don’t stop there. You also need to take into account servicing and repairs, tyres, fuel, parking and any other unexpected expenses that may occur – all in addition to your basic running costs. With every aspect of maintaining and running a vehicle taken into consideration, depending on what car you drive, the annual cost is likely to range from $6,000 to $15,000 per year.

 

Rent and Mortgage Repayments

The biggest asset and cost that we will ever have in our lives is likely to be our home. Data obtained by ABC from the CBA shows that the average monthly mortgage repayments on a median priced home of $459,000 at an interest rate of 5.18% is $2,458, or about $615 per week.

Even if you’re not paying off a home loan, rent alone is still pricey for many Australians – especially in inner city locations. Property data obtained by news.com.au shows that the average cost of rent across Australia is $485 per week.

 

Your Daily Coffee

Australia’s love of coffee can’t be denied, which is why this expense had to be included on our list.

Coffee is a necessity for many people, with one cup costing about $4 a day and an average of 9 cups of coffee being consumed every week, according to Roy Morgan Research. Therefore, Australians on average are spending $36 a week on coffee. Yet despite the cost, it’s often a price that many people are happy to pay.

When considering the price of a simple cup of coffee, life insurance doesn’t seem quite as expensive after all, with life insurance policies available from as little as $5.31 a week!

 

Other Necessary Living Expenses

There are so many other expenses we have to pay to go about our day-to-day lives. According to the most recent data gained from The Australian Bureau of Statistics (ABS), the weekly spending by Australians on average is:

• Housing Costs – $223
• Transport Costs – $193
• Recreation Costs – $161
• Furniture and Equipment – $59
• Clothing and Footwear – $44

 

Other Additional Costs

But the costs don’t stop there! They keep adding up and it’s no wonder why so many people have such a hard time keeping track of where all that money goes. Here are a few other areas that many of us put money towards every week:

• Restaurant Meals – $32
• Mobile Phone – $12
• Personal Care – $11
• Animal Expenses – $11
• Holidays – $52
• Household Appliances – $13

 

Comparing these Weekly Expenses with Life Insurance Costs

When comparing all of these living expenses to the cost of life insurance and weighing up the benefits it can provide, its worth can clearly be justified.

So to put this into perspective, let’s look back at the average cost of life insurance and compare this to the cost of our average household living expenses.

 

Life Insurance Costs

*Please note that all quoted premiums are stepped and subject to underwriting

 

Living Expenses

Once you see these figures side by side, you soon realise that the cost of life insurance – especially for younger, healthier individuals – is very affordable and much cheaper than almost all the other living expenses listed. Even if you’re a middle-aged smoker, the cost of your life insurance policy is still much cheaper than most monthly costs.

 

How to Fit Life Insurance into Your Budget

Take a look at all of the costs we’ve outlined above and consider this:

Do you spend more or less than the average in any of these areas?

Are there any costs that you could cut back on to make way for life insurance cover?

If you think you would struggle to include life insurance in your budget, your first step is to figure out where you can go without. The best way to identify which living expenses can be reduced is by considering the areas where you spend more than the average Australian.

Whether that means cutting back on meals in restaurants, purchasing household appliances, or reducing personal care expenses, you will be grateful that you made these sacrifices when the time comes for your loved ones to claim on your life insurance policy if something tragic were to occur.

 

Work out How Much Cover You’ll Need

Now that you better understand the real cost of life insurance, you can get an idea of how much cover you’re likely to need and how much it’ll cost with this life insurance calculator.

Once you know what to expect, you then need to determine the level of cover you need as well as the inclusions and optional extras that you want included in your policy. It’s also always a good idea to gain further advice from a professional and qualified adviser regarding your particular situation.

The Real Cost of Life Insurance – An infographic by the team at Cover Australia

We’ve all heard the line about how important it is to have life insurance, to make sure your loved ones are looked after and that the future is planned for.

But what does it really mean to have life insurance? Is it just an extra cost going towards an intangible thing that you’ll never really need?

Earlier this year, ANZ Wealth and Ipsos Australia conducted a study into the impact of a parent’s death on their children and partner. Other than the devastating emotional impact, the study found that the financial impact on many families was just as distressing, with 47% of parents without life insurance rating their financial position after a partner’s death as ‘Struggling’.

When compared to families with life insurance, 56% of parents covered by insurance rated their financial position after a partner’s death as ‘Adequate’. This highlights the crucial role of life insurance on the home life, financial stability and mental wellbeing of children and their families after a parent’s death, the study broke down the very real costs of not planning for your future.

For example, a third (33%) of parents without insurance had to move house due to financial pressure, while half (50%) of the children whose parents didn’t have insurance felt that they were not financially supported as well as they could have been. This is compared with 36% of children covered by insurance who agreed with that same statement.

 

“My mother had to have boarders to help make ends meet”

 

These heartbreaking words came from an interviewee who took part in the study, and whose family was not covered by life insurance after one parent died.

Many families were forced to make drastic lifestyle changes to try and achieve financial stability, with 1 in 10 parents taking a second job and 1 in 3 children over the age of 14 taking on a job within 2 years of their parents’ death just to help with household finances.

The financial strain is a heavy burden to bear. Homes lives were heavily impacted, with almost half (49%) of children taking on more responsibilities caring for siblings, and 67% taking on more household chores and tasks.

Furthermore, more than half (53%) of children whose parents weren’t insured reported a decrease in family outings and a third (33%) reported a decrease in overall time spent together as a family.

Death has an understandably damaging impact on children, but with the added financial pressure then faced by the whole family, the effect is hugely intensified.

Many children had to move house and change schools, disrupting their education and social life. 41% of children saw a worsening in academic performance and 46% lost contact with some friends, while a little more than half (51%) of parents would have liked to be able to provide their child with better educational opportunities.

One interviewee sadly reported “a devastating emotional effect” and “an enormous workload upon me for many years” after losing their mother at a young age. In a number of cases, the social and emotional impact on children further developed into a mental health condition or drug/alcohol abuse as they went through adolescence.

 

How life insurance can help

While there isn’t much you can do to prevent or prepare for the emotional heartache and inevitable flow-on effects that children experience when they lose a parent, life insurance has proven to be incredibly helpful in dealing with the sudden financial pressure placed upon the whole family.

It protects against the impact of the unexpected, and makes it easier to maintain your lifestyle if something were to happen. Having a plan for the future can help pay for your children’s school fees, your mortgage and daily living expenses, and as a result, ease the financial stress, allow you to stay in your family home, and reduce the likelihood of disruption and upheaval in your children’s lives.

If they can stay in the same school, surrounded by their friends and a familiar lifestyle, they will have the best chance possible of getting a good education. Having enough life insurance may also allow parents to spend more time with their children, raise them in their family home and give them the support they need to deal with the loss in a constructive, healthy way.

It plays a valuable and very important role in helping both children and parents after a death in the family. In fact, according to the study, 75% of families without a life insurance policy agree that in hindsight, having cover would have helped.

 

Over 40% of families had no warning prior to the death

In a lot of cases, death comes unexpectedly. 64% of families had less than a week’s notice of their partner or parent dying, which meant having to deal with a huge amount of sudden emotional stress and suffering.

The last thing anyone would think about in such a situation is finances, which is exactly why it’s so important to think about them beforehand. If there’s anything that can be learnt from this study, it’s just how crucial life insurance is to help a family pick up the pieces after the death of a parent.

Planning for your long-term financial future is something every family needs to do, and that includes preparing for the possibility of losing a parent and the contribution they make to the family. While life insurance won’t be able to ease the pain and grief of losing a loved one, it can make stabilising your home life a little easier by making sure you’ll have the funds to protect your family’s future.

Death is a natural part of life, and it needs to be discussed – so have the conversation.

 

This blog was written according to research in ‘Impact of death and disability on Australian families’ from the 2015 edition of New Perspectives magazine, as reported by Covered Magazine

It is very important for business owners to maintain a steady cash flow, especially in the early years of its inception. Any downtime a business experiences can have a negative effect on its future success, which is why it is imperative to seek advice and compare Income Protection Insurance options for you and your business. But what exactly does Income Protection Insurance provide, and why is it important?

 

Financial Security

A steady income is vital for the smooth operation of any business; without a steady and dependable flow of income, you may struggle to cover your fixed costs and maintain ongoing operations.

A situation where a business owner is unable to work due to long term illness or suffering a serious injury, can regrettably cause a business to suffer. Not only will the business owner be unfit to continue running the business during this time, but it is also likely they may need to withdraw from the business’ account to pay for their personal and living expenses.

Having a comprehensive Income Protection Insurance policy in place can prevent the business suffering.

Financial security and being able to maintain your current lifestyle and business operations are some of the main reasons why it should be a priority to compare Income Protection Insurance with Cover Australia.

It is helpful to know that an ongoing benefit can be received from the chosen insurance provider to cover bills and house expenses, which in turn keeps money in the pocket of a business owner. This money is also able to assist a business in remaining up and running.

 

Medical Bills

When health becomes an issue, the business is not the only thing that suffers – personal finances will also be negatively affected.

Depending on the treatment received, medical bills can amount to thousands of dollars, and most people don’t have enough savings to pay for such an expensive bill. Thankfully, Income Protection Insurance payments can also be used to settle medical bills, so as soon as any health conditions are taken care of, the cost of care will be one less issue to deal with.

Some comprehensive Income Protection policies also have ancillary benefits which provide payments to assist with rehabilitation expenses to help you recover and get back to work as soon as possible. It is always important to compare Income Protection insurance policies and the extra benefits they offer as some are far superior to others.

 

Lack of Benefits

While being the owner of a business certainly has its positives, there are also benefits employees hold that business owners don’t have the luxury of partaking in.

Some of these benefits include the company providing paid sick leave, or employees receiving payments for extended leave periods due to illness. Also, many people may be unaware that self employed business owners are not covered by worker’s compensation, even if they sustain the injury during business activities.

Therefore obtaining Income Protection insurance is essential so that if you do happen to suffer a serious injury at work you will still have an ongoing income stream following your selected waiting period.

Being a business owner can be tough in circumstances where you are sick or injured because you only have yourself to depend on when running into financial trouble. This is why it is so important to compare Income Protection Insurance to ensure you have that an alternative means of income should you need it.

 

Business Expenses Cover

If you are self employed or in a partnership and running a small business, then you may be eligible to apply for Business Expense insurance.

If a business owner chooses to purchase business expenses cover, they are aiming to cover the fixed operating costs of the business. Proceeds from making a claim can be used to cover rent, debt repayments, employee salaries and any other fixed expenses whilst you are unable to run your business for a period of time.

That means that when the immense benefits of income protection and business expenses cover are combined together, the ability to maintain a steady income to support both your family and your business will be enhanced when you need it. Income Insurance is the best way to cover all areas and maintain a steady flow of income.

 

Tax Deductable Premiums

There are many benefits for business owners who take the time to compare Income Protection Insurance and purchase the appropriate policy to suit their needs. One of the biggest of these benefits is related to tax.

Insurance premiums paid towards income protection policies are also usually tax deductable. Having the security of Income Protection Insurance in place combined with the ability to lower tax liabilities are big positives to having an income insurance policy.

 

Compare Income Protection Insurance with Cover Australia

Cover Australia has the expertise to help you find the Income Protection Insurance policy and the Business Expense Insurance policy that you and your business deserve. Don’t go it alone to compare Income Protection Insurance policies when our reputable insurance advisers are on hand to help you out.

Our advisers are extremely knowledgeable and ready to assist you 7 days a week. Take the time to visit our Cover Australia website to compare Income Protection Insurance online, and together we can find the best policy for you.