Category: Uncategorised

We had a look at life expectancy around the world as we know it today, but now we’d like to dig a little deeper and take a look at life expectancy through the ages.

It’s incredible to see the way in which modern medicine and living habits have altered the length of time that we are expected to live. In 17th Century England, the standard life expectancy was around 35 years. Now, life expectancy in Australia is 80.4 years for Caucasian men, and 84.5 years for Caucasian women. In Australia, we are currently one of the highest ranking in the world for life expectancy.

Considering we’re doing a bit of a deep dive into the history of life throughout the ages, we thought it might be pertinent to do a bit of a dive into the history of life insurance too.

 

History of Life Insurance

Two very enterprising chaps in London, William Talbot and Sir Thomas Allen, must have had a lightbulb moment when they stumbled upon the universal truth that one day, we all shall die. They developed the first modern form of life insurance with the Amicable Society for Perpetual Assistance Office.

Image Source

The original plan saw a maximum of 2,000 members paying £7 6s for a policy (around $1,800 AUD) and £6 4s annually (around $1,500 AUD). All members could hold up to three shares, and the premiums collected annually were divided as an ‘amicable contribution’ among the wives and children of members depending on the shares held. Those eligible for a payout were delivered “at an equal rate per share, with only such reserve as is necessary for defraying the charges of management”.

Over time, the system evolved, various other companies were started, and life insurance gradually evolved into what we know it to be today.

So when the Amicable Society and various other life insurers were offering protection for families and beneficiaries in the 18th Century, what sort of life expectancy was expected around then?

 

Life Expectancy Through the Ages

Studies show that if you were born in 1900, you had a pretty good chance of dying by your 50th birthday. Yikes. Things have changed substantially since then thanks to improved health and safety around the world. In our investigation we have found that various nations have different figures available depending on records, and so we’ll offer as much information as possible for each country and nation for each time period.

 

 1500s

We’ve only uncovered data from the United Kingdom here, and they put life expectancy at around 33.94 years of age. But, if you were an aristocrat (and thus had access to things like oh, you know – food and clean water), you were tipped to live a lot longer. If a gentleman in the English aristocracy blew out the candles on their twenty-first birthday cake, they could expect to live until as old as 71.

One particularly memorable case in London has a burial register in Shoreditch that puts one Thomas Cam (or Carn) at a whopping 207 years old. According to Old and New London, ‘the 2 should probably be a 1.’ Still, even by modern standards, 107 is a very good innings – let alone in Reformation England.

 

1600s

Things improved slightly in the 1600s with the average age being 39 years. A potentially dubious claim of longevity was made in 1649 where Thomas Damme of Leighton was recorded as dying at 154 years of age.

 

1700s

Life insurance was invented in the United Kingdom, and people stayed around the 39-year mark for life expectancy. The Irish Famine saw a huge loss of life with around 310,000 – 480,000 people starving due to cold weather affecting their harvests.

 

1800s

During the 1800s the life expectancy began to rise, reaching 48 by the end of the 1800s in the UK, and records beginning in other nations with recorded ages of 36 in Japan, 38 in Germany, and 25 in India.

 

 1900s

Serious record keeping began around the world as the average age rose steeply. Modern medicine got a whole lot better, as women were dying in childbirth less and serious diseases like pneumonia, influenza, tuberculosis, and bronchitis were treated far more effectively. Major incidents like war and famine/disease outbreaks saw population numbers decrease in certain areas – but the average number just kept creeping up. In the 1950s, people could expect to live to 70 in the UK, 67 in Germany, 57.7 in Japan (up from an average of 30 in 1945 after the bombing of Hiroshima), 47 in South Korea, 34 in Ethiopia, and 36 in India.

 

 Today

We see figures continue to rise thanks to modern medicine and lifestyle changes. Yoga has a lot to answer for, and so does kale, probably. Take a look at the ages by country:

• Japan – 83
• Australia – 82
• UK – 81
• Canada – 82
• Singapore – 83
• Italy – 82
• New Zealand – 81

It must be said that in certain regions less developed, life expectancy is still around the 50-year mark, and this is something that as a nation we must all do our best to improve.

If you are looking for life insurance to protect you and your family, please get in touch to find out more about how we can help you or call us for a confidential chat on 1300 366 817.

Many people are put off by life insurance, thinking it’s unnecessary and not worth the cost. But once you get past these common misconceptions, you’ll realise that it’s a valuable investment in many cases.

People get life insurance for several different reasons, but the following are some of the main reasons why life insurance is often an excellent investment:

 

1. Accidents can happen at anytime

One of the top reasons why people get life insurance is to protect themselves (and their families) from accidents and other unforeseen events. For many, this extra protection is more than worth its cost.

 This is admirable because, whether we like it or not, accidents and unfortunate events are a part of life. Perhaps even more worrying: they can happen anytime. The sooner you come to terms with it, the better you can prepare for it.

 Getting the right life insurance will help you better deal with a situation if an unforeseen death does occur. And if such an unfortunate event does happen, you and your family will be better off with proper life insurance than without it.

 

2. Funerals are expensive

Let’s face it: funerals are expensive. Funerals can easily cost in excess of 10 thousand dollars, not to mention all other miscellaneous expenses that burial ceremonies typically incur.

 With the proper life insurance coverage, however, you’ll be able to offset the financial burden of funerals, burial ceremonies, and other obligations that often come with such events. To many, this extra financial assistance for funerals is more than enough to prevent your surviving family members from getting into any financial holes.

 

3. Pay off debts

Life insurance is often used as a source of funds for paying or reducing debts such as mortgages, credit cards, and personal loans. If you or a loved one dies, you or your family will still be able to repay these debts with the right life insurance in place. This prevents surviving members from inheriting a previous debt.

After all, paying big debts is the last thing you want to do after the death of a loved one. But with life insurance, you can help eliminate or, at the very least, reduce this financial burden on you or your loved ones.

 

4. Invest with Greater Confidence

Because life insurance can provide financial support to you and your family in the event of death, you’ll be able to pursue large investments with greater confidence.

Whether you’re getting a mortgage for a new house, starting a business, or paying for your child’s education, you can pursue it with less worry knowing that life insurance can provide financial support in the worst case scenario. To many, life insurance serves as a financial safeguard that protects them and their family’s investment in the case of unforeseen death.

 

5. Pay for ongoing care

Those who’ve been dealing with a terminal illness and receiving ongoing care know how burdensome (emotionally, physically, etc.) it can be to them and their families. Medical bills and care services, meanwhile, are notoriously expensive, and maintenance care alone can quickly dry up a family’s savings.

Life insurance can help pay for ongoing care for you or your loved one. With it, the cost of related medical bills and care services can be substantially reduced. And for those who don’t have enough savings left or whose resources have quickly depleted, life insurance can be the major source of funds for receiving any ongoing care.

 

6. Pay for ongoing living expenses

Moving on from the death of a loved one can be a difficult process. This is true not just personally, but financially as well. This is even more apparent if there’s a family involved and the one who died was the major breadwinner of the family.

The death of family member – especially that of the main breadwinner – can deal a tremendous financial blow to most families. The right life insurance can help pay for ongoing living expenses, household costs, and other financial obligations as the family moves on.

Although life insurance will never be able to replace the presence of a loved one who passed away, it can help surviving members transition to a new life when it comes to financial matters.

 

7. Protect retirement savings

It’s common for most people to save up for retirement and put money aside for later use.

Many, however, find that this isn’t enough to prepare for the future. Serious illness or unexpected death can quickly use up their retirement savings thanks to expensive medical bills, funeral expenses, and other costs that often come with such events.

With the proper life insurance coverage, these expenses can be minimised (sometimes even completely covered), preventing the depletion of your retirement savings.

For those looking to prepare better for the future, getting the right life insurance can be just as important as saving up for retirement.

 

Life Insurance to Protect Your Family’s Future

There’s a saying in the industry that insurance isn’t for the dead; it’s for the living. And that’s definitely true when it comes to life insurance.

What many don’t realise about life insurance is that it’s ultimately not about you; it’s about your loved ones. Life insurance is about protecting your family if you or a loved one dies. It’s making sure they’re protected financially no matter what happens.

Death is difficult enough to move on from; it’s even harder if they have to continue living with the financial burdens caused by your absence. Life insurance is there to help make death less financially burdensome on your family if you’re not there anymore.

If you need more information about how life insurance can protect you and your family in the future, please don’t hesitate to talk with our specialists. We’ll gladly provide any information or advice you may need. We can also provide life insurance comparisons to help you choose the right plan.

There are several alternatives available to you when deciding who should be the owner of your policy. While self-ownership provides the most control, in some instances it may be appropriate to place the cover inside your superannuation fund or your self-managed super fund to access tax benefits or to alleviate pressure on cashflow.

All trustees of an SMSF have a legal obligation to consider insurance for the funds members as part of the fund’s investment strategy. This includes each member’s need for Term Life, Total and Permanent Disability, and Income Protection insurance. The insurance strategy must be regularly reviewed to ensure it is appropriate for the needs of each member; this is a requirement of the Australian Taxation Office, and penalties may apply if this is not evidenced. The evidence can be as straight forward as recording the consideration process to being as complex as documenting a Statement of Advice. Failure to comply with this requirement can result in the trustee’s being fined up to $11,000.

When your insurances are held within your self-managed super fund, your fund is the owner of the policy and pays the policy’s premiums. The premiums are a deductible expense to your fund and this can reduce the overall tax payable on contributions and investment income. If you make concessional contributions into your fund, then you are effectively paying the premium in pre-tax dollars.

Upon payment of the benefit, there are various issues which need to be addressed. The taxation implications upon payments will depend upon the size of the benefit, how it is paid and to whom it is paid. These issues are quite complex and planning is required.

 

Beneficiaries of SMSF Insurance

Where your Term Life insurance is owned by your SMSF, in order for the person you nominate as the beneficiary to receive the benefit tax free, they must be either:

• A dependant (including your current spouse – married or de facto and any natural child of any age). It can also include any other person who can prove a financial dependency.
• Your Legal Personal Representative who is essentially the executor of your estate

Death Benefit payments from an SMSF do not form part of your estate when combined with a valid Binding Death Benefit Nomination. With a valid, binding nomination, the trustee of the fund is bound to pay the proceeds to whoever is nominated (assuming they are a dependant or legal personal representative). This ensures that the policy proceeds are distributed in accordance with your wishes. Note: this is only the case where the nomination remains valid.

In the absence of a valid Binding Death Benefit Nomination, the trustee of your superannuation fund will have the discretion as to who receives the proceeds of your policy. While they will generally take any non-binding nomination into account, there is no guarantee that they will act in accordance with your wishes.

If your death benefit is paid to someone other than a dependant or your Legal Personal Representative, then there may be taxation payable on receipt of the benefit.

Limitations of Insurance Inside Your SMSF

Where your Total and Permanent Disability insurance is held within your SMSF, under superannuation legislation you may only have TPD cover with an Any Occupation definition. Today, many retail insurers offer you the option to have a “split” policy which has a linked Own Occupation component of cover held outside your SMSF and paid by you personally.

Accessing TPD benefits paid to your SMSF will incur an element of taxation on the benefits you receive. The TPD benefit paid to the fund must be paid to you personally and cannot be paid to any other members of the fund.

You can also own your Income Protection insurance within your Self-Managed Super Fund. Similarly, payments of the premiums are a deductible expense to the fund and if you make concessional contributions into you fund you are effectively paying the premium in pre tax dollars. Having said this, if you were to own the policy personally, the premiums are tax deductible to you.

Important Considerations

Whilst there is the additional advantage of alleviating pressure on your cashflow by holding your Income Protection cover in your SMSF, subject to your personal circumstances it may be more beneficial to own the policy personally due to the vast disadvantages of owning it within a super fund:

A more complex claims process – When making an income protection claim you will be required to first have the claim processed by the insurance company and then also by the super fund itself. Trustees of superfunds have an obligation to ensure that all funds released from super satisfy a condition of release. The Superannuation Industry Supervision Act (SIS Act) states that in order for a member to receive a replacement income stream from super, they will need to satisfy the temporary incapacity condition of release. This is contrasted with a policy held outside of super where a claimant simply has to meet the insurer’s requirements.

A simpler, less comprehensive product – Superannuation legislation states that income protection held inside super is only able to offer protection against a defined loss in income. In order to access the various additional benefits present in high quality Income Protection products owned outside of the superannuation environment, some retail insurers offer a “split” policy that will enable you to receive these benefits under a linked policy held personally. The benefits that you cannot be paid under a policy held in your SMSF include a trauma benefit (pays you a lump sum upon being diagnosed with one of a number of diseases) and a specific injuries benefit (pays you a lump sum should you suffer one of a number of injuries).

Indemnity contracts – Income protection held inside an SMSF can only be an indemnity style policy. What this means is that, at the time of claim, you will have to prove to the insurer that immediately prior to disability, you were earning sufficient income to justify your monthly benefit. This presents a significant hazard if you are self-employed and your income fluctuates or if, for any reason, you are earning less money than you were when you set up the policy.

Preventing payments of other insurance policies – If you have Total and Permanent Disability insurance owned inside your super fund as well as your Income Protection insurance, in the event of a total disability, you cannot claim on both your Income Protection policy and your Total and Permanent Disability policy. As previously stated, due to the SIS Act, one of the conditions of release for Income Protection is temporary incapacity; and as you cannot be temporarily incapacitated and permanently incapacitated at the same time, you cannot claim on both of the insurance policies.

It’s important to carefully consider all the pros, cons and tax implications of insurance options before deciding whether or not to have cover in your super fund. At the end of the day, it’s different for everyone and comes down to determining what’s best for you.

Advertisements for “no medical” life insurance policies are hard to miss – you’ll notice them on billboards, the radio and daytime TV all year-round. People who are squeamish about visiting a GP can be tempted to opt for coverage that doesn’t require a medical examination. However, getting a life insurance policy that does require a medical may save you a lot of money in the long run, as no-examination policies often have higher premiums because they’re considered riskier for insurers to provide.

If you’re deciding whether or not to apply for a policy that requires a visit to the doctor, read on. You’ll quickly see that a life insurance medical examination isn’t that scary, complicated or invasive!

 

What You Can Expect from Your Life Insurance Medical Examination

The type and intensity of the medical examination your insurer will need you to undertake will depend on both your personal details (age, gender etc.) and your insurer’s underwriting policies.

Applying for a policy that requires a medical usually involves two steps:

 

1. A pre-medical questionnaire: This will include questions about you and your family’s medical histories, as well as your lifestyle (smoking, drinking, diet, exercise routines etc.). Sometimes you’ll need to take paperwork home and fill it out, and sometimes this will just be a verbal questionnaire that the doctor goes through with you before your examination. If you’ve ever been to a specialist, it’s a good idea to request a copy of your medical records to help you fill out your pre-medical questionnaire with as much detail as possible.
2. Your medical examination: A basic medical examination is as simple as a check of your height, weight, pulse and blood pressure. If your answers to the pre-medical questionnaire flag certain risk factors, you may also have to take additional tests. The most common form of insurance medical takes no more than 15 minutes and is conducted by a nurse.

 

Your medical will either be conducted by a nurse or if you have a full examination, a doctor. Some insurers will want you to be examined by their doctors, while others are happy to have your GP do this part of the application.

 

Everything You Need to Know About Additional Tests

There are three types of additional tests that insurers might ask for:

1. Blood tests: You might be asked to take a blood test to check your cholesterol, glucose, protein and HIV status, or to test for other conditions that you present a high risk of developing. You may have to fast for 6-12 hours before having a blood test.
2. Urine tests: These are usually to check for HIV, proteins, glucose, drugs and alcohol or other conditions you’re at risk of having. Your doctor will let you know if you need to fast before this test and if it needs to be carried out at a particular time of day.
3. Stress ECG: Applicants that present a high risk of heart conditions are sometimes asked to do an exercise stress test. This involves walking or running on a treadmill while your heart’s response is examined. Don’t worry though; you’ll be given plenty of warning if you need to have a stress ECG done and this simple test can save you money on your premiums if no issues are uncovered.

 

Learn More About Life Insurance Medical Examinations

If you’re looking for life insurance and want information on what Australia’s leading insurer’s medical examination requirements are, get in touch with Cover Australia today. Our friendly team of experts are here to take your questions and walk you through different insurer’s application processes so that you’ll always know what to expect. Dial 1300 366 817 or click ‘Get a Quote’ now to reach someone who can help you make the best decisions about your life insurance needs.

To understand if your income protection insurance premiums are tax-deductible, you need to know if your policy is held within your super fund and the specifics of what the policy covers.

Are Income Protection Premiums for Policies Within Superannuation Funds Deductible?

If your income protection premiums are deducted from your super contributions, then they are not personally tax deductible.

However, as insurers receive a 15% tax rebate due to the premiums being a deductible expense to the fund, most insurers pass on this 15% saving to you if you pay your premiums annually as a rollover.

Are Income Protection Premiums for Policies Outside of Superannuation Funds Deductible?

Yes!

Generally premiums that you pay towards an income protection insurance policy outside of your super fund are deductible.

It should be noted, however, that if any portion of the income protection policy covers capital as opposed to income, only the portion of the premium dedicated to your income will be deductible.

Income protection insurance held outside of super can also often be bundled with other kinds of insurance.  If your policy includes benefits such as the TPD Lump Sum Option, a portion of your premium will not be deductible.

Always check with your insurance provider to find out about your exact coverage.

Will My Income Protection Insurance Benefits Be Taxed?

Yes.

While your premiums are deductible when being paid outside your super fund, the payments you receive if you ever claim are taxable.  You must declare them much as you would regular income from an employer.

Some benefits, such as receiving a Trauma Benefit will not be treated as income, and as such it will not be assessable as taxable income.

If your policy is held within a super fund, the trustee of the fund will generally apply withholding tax to the benefit.  However, this can vary between funds, so you should seek clarification.

Again, always check with your insurance provider to find out about your exact coverage.

What Else Should I Consider When Purchasing Income Protection Insurance?

You should always carefully analyse the features of each policy that you are considering.  There are much more important aspects to income protection insurance than the deductibility of the premiums.

The cost of your premiums, the level of coverage, whether you can get your income protection insurance as part of a package or as a stand-alone product, and if there are any industry or association discounts you may be eligible for are just a few key considerations.

Learn More About Income Protection Insurance

If you want to know more about whether purchasing income protection insurance is right for you and your family, have a chat with a professional insurance adviser. They have all the information you need to get the coverage that’s right for you at their fingertips.

Get in touch with a friendly adviser from Cover Australia on 1300 366 817 or simply click ‘Get a Quote’ to start comparing what’s on offer from Australia’s top insurers today.

 

Everyone, including those who are unemployed, need life insurance to protect their loved ones.

Whether you’re employed or not, you have financial responsibilities that can’t be ignored. Life insurance is one of those responsibilities – and it’s actually more important for those out of work than those in work to maintain their policy.

Below we’ve answered the most common life insurance questions those who find themselves out of work have.

 

Q: I’m considering cancelling my life insurance policy to cut back on expenses. Is this a good idea?

Not necessarily. Life insurance policies do not have a savings component, so unless you opt out of your policy within the 30 day cooling off period, cancelling will mean that you lose all of the premiums you’ve paid so far.

Unemployed people actually have a greater need to protect their family’s finances than their employed counterparts. This is because, if money is already tight, then if something were to happen to you the results would be even more financially devastating for your family.

If you think you can’t pay your premiums while out of work, imagine how much harder it will be for your family to pay for funeral expenses, mortgage repayments and bills during financially hard times.

 

Q: What can I do if I really can’t afford my life insurance premiums while I’m unemployed?

The last thing you want to do is abandon a policy that you’ve been paying for years or even decades.

Many insurers are happy to help you through hard times by allowing up to a 3-month freeze period where you’re not required to pay your premiums.

You can use this period to look for work, catch up on other bills that are due and get by with one less financial stress to consider!

Whilst it is obviously crucial to not allow your insurances to put yourself under financial strain, it is important to weigh up all options before making any changes.

 

Q: Are there other ways I can reduce my premiums while I look for work?

There are several ways you can lower the cost of your life insurance while you’re unemployed. These include:

• Reducing your level of cover
• Comparing your current provider’s rates with the rates of other, more competitive providers
• Adopting a healthier lifestyle by losing weight, quitting smoking or cutting back on your alcohol consumption
• Changing to a life insurance policy that requires a medical as opposed to a non-medical policy which will almost always compensate for the lack of personal information with higher premiums

Find out more ways to reduce your premiums here.

 

Q: Can I get approved for a new life insurance policy while I’m unemployed?

Sometimes life insurance providers are less likely to approve policy applications made by unemployed people. Life insurance will typically be limited to a certain level while you are looking for work while disability covers will not be offered based on your own occupation.

This is a rare scenario, however, and most life insurance providers will consider more than a few factors before determining if you’re eligible to take out a policy, including:

• How steady your history of employment is
• How long you’ve been unemployed
• How employable your skills are
• How actively you are pursuing employment
• Your credit history
• Your assets
• Your savings
• The level of coverage you’re applying for

If you have apprehensions about whether you’ll be accepted given your personal circumstances, it’s a good idea to apply for a lower level of coverage and then increase this level of cover when you commence working again.

 

Q: Will cancelling my life insurance affect my ability to reapply down the track?

It is possible that cancelling now can affect your ability to get the same rate later down the track – especially if you’ve held your policy since you were young.

This is because the older you get, the higher the premiums you’ll be charged. So, if you’ve locked in a great rate when you’re young, it’s in your financial best interest to keep that policy when you’re older. This typically refers to policies that have a ‘level premium’.

As we grow older, it’s inevitable that our lives will change. Nothing stays the same and neither should your insurance. Your life insurance should reflect your lifestyle, cover your expenses and the payout should be available to the people in your life who need it the most.

So with this in mind, we can all agree that life insurance cover should never stay the same for the entirety of our lives, but how exactly does our need for insurance change over time? In this article, we will explain why you will need life insurance at each stage of your life, why you should be making changes to your policy as you get older, and how it can be done.

 

Growing Older

When you’re young, fit and healthy with not a care in the world, life insurance is probably the last thing on your mind. But as you grow older and your health deteriorates, your priorities start to change. You won’t be alive forever, and you start to ask yourself what you’ll be leaving for your loved ones after you’re gone.

As adulthood creeps upon you, and you continue to spend the money you earn, and debts begin to pile up, who’s going to pay off your debts and mortgage when you pass away? With the right insurance cover, your debts will be taken care of. Even if you’re single and have no dependants, taking out a life insurance policy could significantly help your family if you passed away.

 

Earning More Money

If you’re making more money thanks to a recent promotion or career change, you have probably adjusted your lifestyle to suit your larger paycheck. Because you now have more money at your disposal, you will probably buy a bigger house, purchase a more expensive car or send your kids to a private school.

If you already have life insurance or income protection insurance in place, will it cover the expensive lifestyle you now lead? If not, it might be time to update your insurance details to reflect current earnings and living costs.

 

Getting Married and Buying a House

 Having that special someone in your life opens your world up to new possibilities, and it also means you have another person in your life to look after other than yourself. If you already have life insurance in place, you’ll probably want to make your partner the beneficiary of your policy.

Things begin to get more complex when a house comes into the equation. If you and your spouse decide to buy a house together, both of you are likely to contribute towards the repayments. But how would your partner pay off the mortgage on their own if you were to pass away?

This is why buying a house is one of the major reasons why couples decide to take out life insurance; to ensure neither partner is left with the burden of paying off a mortgage. Thanks to the money they receive from the life insurance handout, they should have enough money to get by.

 

Having Children

 Once children are brought into your world, your priorities shift in more ways than one. You want to protect your kids more than anything and taking out life insurance has to be one of the best ways to do that. This is especially the case for households that rely on one income.

Raising children is an expensive exercise at the best of times but if you lose your sole income earner, keeping up with expenses can be near impossible. That’s why your current insurance needs to be updated to cover the extra costs that come with having kids such as school fees and additional living expenses required to keep your family happy and healthy.

The death of a parent is a hard thing to overcome, and this is especially so if life insurance is not in place. If you haven’t taken the plunge into life insurance yet, now is the time to do it. With cover in place, you can trust that your children will still be looked after financially if you do pass away unexpectedly.

You should also make sure your children are listed as beneficiaries in case both you and your partner were to pass away.

 

Getting Divorced

 If a relationship falls apart, divorce is often the unfortunate result. Both of your lives will head in different directions, and you will be settling into single life again, separated from the commitment and obligations that go along with marriage.

If you do ever get divorced, you will probably want to remove your ex-spouse as a beneficiary from your life insurance policy. Your expenses are also likely to change, so make sure this is factored in and changes are made to your policy if needed so you get adequate cover for your new circumstances.

 

Retirement

Once you reach retirement age, your kids have probably moved out of home, which cuts out a significant expense in your life. Many retirees may also own their property outright or choose to downsize their home or move to a retirement village which also saves on costs.

With all of this cost-cutting in your life, your need for life insurance is likely to decrease dramatically. You will probably want to make changes to your policy to equate for your lower living expenses. If you can afford it, you could choose to keep your life insurance as is to cover estate taxes, general living expenses for your partner and you could even have money left over to give to charity.

 

Why You Should Review Your Life Insurance Policy

If you don’t already have life insurance in place, all of these life stages will probably encourage you to consider it. Once you finally decide to purchase life insurance, it should then be reviewed whenever you experience any significant lifestyle changes.

Your life insurance needs will always fluctuate so you have to adapt. If you have too much cover, you risk paying too much money for a policy that is too excessive for your needs. And if your policy is not up to scratch, you risk having a payout that does not cover your expenses.

The biggest reason to review your life insurance policy is to save money. Take some time out of your busy schedule to look at the features in your policy and whether all of those extras are still needed. If there is anything that no longer needs to be included, take them out and your premium will likely reduce. Same goes with reducing your overall cover amount.

The other major reason to review your policy is to make sure you are not under-insured. You may need to add on some extras and features to cover any additional expenses, or you may wish to include other beneficiaries into your policy. The premium is likely to rise, but at least you know you will have adequate cover.

So whenever you reach any of the milestones mentioned above, remember to take the opportunity to review your cover and make changes where you see fit.

 

Making Changes to Your Insurance is Easier than You Think

Whenever you hit a new milestone in your life, whether it be getting a promotion, buying a house or having kids, it’s worthwhile reviewing your current cover to see if it still meets your needs. And luckily, it’s actually pretty easy to do it.

Reviewing your life insurance is as simple as calling your insurance provider over the phone to ask for details about your policy. Alternatively, if you took out cover through us at Cover Australia, you can contact us for expert advice and assistance for the life of your policy. We can also help you renew and make changes to your policy when needed. Just give us a call on 1300 366 817 to discuss any recent lifestyle changes and we can make sure you are fully covered.

Do keep in mind that any changes made to your policy are likely to affect your premium.

The areas of your policy you should be reviewing include:

• Basics of your policy
• Coverage amount
• Policy restrictions
• Policy benefits

Reviewing your life insurance also gives you a chance to shop around and see if another insurance company can offer the right level of cover at a more affordable price. It’s as easy as visiting our website to compare insurers quickly and easily.

As we grow older, it’s inevitable that our lives will change. Nothing stays the same and neither should your insurance. Your life insurance should reflect your lifestyle, cover your expenses and the payout should be available to the people in your life who need it the most.

So with this in mind, we can all agree that life insurance cover should never stay the same for the entirety of our lives, but how exactly does our need for insurance change over time? In this article, we will explain why you will need life insurance at each stage of your life, why you should be making changes to your policy as you get older, and how it can be done.

 

Growing Older

When you’re young, fit and healthy with not a care in the world, life insurance is probably the last thing on your mind. But as you grow older and your health deteriorates, your priorities start to change. You won’t be alive forever, and you start to ask yourself what you’ll be leaving for your loved ones after you’re gone.

As adulthood creeps upon you, and you continue to spend the money you earn, and debts begin to pile up, who’s going to pay off your debts and mortgage when you pass away? With the right insurance cover, your debts will be taken care of. Even if you’re single and have no dependants, taking out a life insurance policy could significantly help your family if you passed away.

 

Earning More Money

If you’re making more money thanks to a recent promotion or career change, you have probably adjusted your lifestyle to suit your larger paycheck. Because you now have more money at your disposal, you will probably buy a bigger house, purchase a more expensive car or send your kids to a private school.

If you already have life insurance or income protection insurance in place, will it cover the expensive lifestyle you now lead? If not, it might be time to update your insurance details to reflect current earnings and living costs.

 

Getting Married and Buying a House

Having that special someone in your life opens your world up to new possibilities, and it also means you have another person in your life to look after other than yourself. If you already have life insurance in place, you’ll probably want to make your partner the beneficiary of your policy.

Things begin to get more complex when a house comes into the equation. If you and your spouse decide to buy a house together, both of you are likely to contribute towards the repayments. But how would your partner pay off the mortgage on their own if you were to pass away?

This is why buying a house is one of the major reasons why couples decide to take out life insurance; to ensure neither partner is left with the burden of paying off a mortgage. Thanks to the money they receive from the life insurance handout, they should have enough money to get by.

 

Having Children

Once children are brought into your world, your priorities shift in more ways than one. You want to protect your kids more than anything and taking out life insurance has to be one of the best ways to do that. This is especially the case for households that rely on one income.

Raising children is an expensive exercise at the best of times but if you lose your sole income earner, keeping up with expenses can be near impossible. That’s why your current insurance needs to be updated to cover the extra costs that come with having kids such as school fees and additional living expenses required to keep your family happy and healthy.

The death of a parent is a hard thing to overcome, and this is especially so if life insurance is not in place. If you haven’t taken the plunge into life insurance yet, now is the time to do it. With cover in place, you can trust that your children will still be looked after financially if you do pass away unexpectedly.

You should also make sure your children are listed as beneficiaries in case both you and your partner were to pass away.

 

Getting Divorced

If a relationship falls apart, divorce is often the unfortunate result. Both of your lives will head in different directions, and you will be settling into single life again, separated from the commitment and obligations that go along with marriage.

If you do ever get divorced, you will probably want to remove your ex-spouse as a beneficiary from your life insurance policy. Your expenses are also likely to change, so make sure this is factored in and changes are made to your policy if needed so you get adequate cover for your new circumstances.

 

Retirement

Once you reach retirement age, your kids have probably moved out of home, which cuts out a significant expense in your life. Many retirees may also own their property outright or choose to downsize their home or move to a retirement village which also saves on costs.

With all of this cost-cutting in your life, your need for life insurance is likely to decrease dramatically. You will probably want to make changes to your policy to equate for your lower living expenses. If you can afford it, you could choose to keep your life insurance as is to cover estate taxes, general living expenses for your partner and you could even have money left over to give to charity.

 

Why You Should Review Your Life Insurance Policy

If you don’t already have life insurance in place, all of these life stages will probably encourage you to consider it. Once you finally decide to purchase life insurance, it should then be reviewed whenever you experience any significant lifestyle changes.

Your life insurance needs will always fluctuate so you have to adapt. If you have too much cover, you risk paying too much money for a policy that is too excessive for your needs. And if your policy is not up to scratch, you risk having a payout that does not cover your expenses.

The biggest reason to review your life insurance policy is to save money. Take some time out of your busy schedule to look at the features in your policy and whether all of those extras are still needed. If there is anything that no longer needs to be included, take them out and your premium will likely reduce. Same goes with reducing your overall cover amount.

The other major reason to review your policy is to make sure you are not under-insured. You may need to add on some extras and features to cover any additional expenses, or you may wish to include other beneficiaries into your policy. The premium is likely to rise, but at least you know you will have adequate cover.

So whenever you reach any of the milestones mentioned above, remember to take the opportunity to review your cover and make changes where you see fit.

 

Making Changes to Your Insurance is Easier than You Think

Whenever you hit a new milestone in your life, whether it be getting a promotion, buying a house or having kids, it’s worthwhile reviewing your current cover to see if it still meets your needs. And luckily, it’s actually pretty easy to do it.

Reviewing your life insurance is as simple as calling your insurance provider over the phone to ask for details about your policy. Alternatively, if you took out cover through us at Cover Australia, you can contact us for unbiased advice and assistance for the life of your policy. We can also help you renew and make changes to your policy when needed. Just give us a call on 1300 366 817 to discuss any recent lifestyle changes and we can make sure you are fully covered.

Do keep in mind that any changes made to your policy are likely to affect your premium.

The areas of your policy you should be reviewing include:

• Basics of your policy
• Coverage amount
• Policy restrictions
• Policy benefits

Reviewing your life insurance also gives you a chance to shop around and see if another insurance company can offer the right level of cover at a more affordable price. It’s as easy as visiting our website to compare insurers quickly and easily.

In 2016, with so much health advice constantly circulating and ready to be plucked out of cyberspace with a thumb and a smartphone, it can be difficult to know what to believe. Often, it seems like you can “scientifically” justify any health and fitness choice as long as you search hard enough for the right information.

In this article, we shed a little light on some of the most common misconceptions about health. From old wives tales that have mutated into ill-informed Facebook posts, to the latest fitness fads, we’re debunking nine of the most pervasive myths of 2016

 

#1:MSG is Bad for You

MSG, or monosodium glutamate, has got a lot of bad press. It’s been accused of causing everything from headaches to brain damage, Alzheimer’s disease, Parkinson’s disease, cancer and more.

However, countless studieshave proven that MSG – which mostly consists of salt and glutamate (a common amino acid that occurs naturally in everything from tomatoes to human breast milk) – is harmless.

The problem isn’t with the MSG itself: it’s with the food that it is usually put in. Generally, the foods that need the umami “flavour enhancement” MSG offers are low quality, highly processed foods that are bad for you anyway.

And, while some people swear that they know the effects MSG has on their systems, scientists suggest that this might just be an allergic reaction to the chemical.

The verdict: MSG is fine.

 

#2: Diet Soft Drinks Cause Cancer

Chances are, you’ve read an email or social media post explaining why a governmental/multinational conspiracy has been covering up the fact that drinking diet soda causes MS, cancer, lupus and more.

However, comprehensive reviews of all of the studies on diet soft drink have proven over and over that the artificial sweetener used in most diet soft drinks – aspartame – is completely safe.

“The weight of existing evidence is that aspartame is safe at current levels of consumption as a non-nutritive sweetener,” one of the most recent of such reviews states.

Verdict: Many studies have shown that diet soft drinks don’t cause cancer. Articles that say otherwise are usually anecdotal, unverified, or misinformative.

 

#3: Drinking Fruit Juice is as Healthy as Eating Fruit

There are a number of reasons why you might think fruit juice is healthy. After all, it has fruit in it, and fruit is full of the vitamins, minerals, fibre and antioxidants our bodies love.

However, there are a few reasons why drinking fruit juice is just not comparable to eating whole fruits, and they’ve all got to do with sugar:

1. The sugar content of fruit juice (and fruit drink, which is often packaged identically to real juice) is often on par with or in excess of the amount of sugar in fizzy drinks like Coca Cola
2. Chewing through multiple pieces of fruit in quick succession would be quite difficult for most people. Drinking large amounts of sugar-laden juice, on the other hand, is quite easy. The liver is the only organ that can metabolise fructose (the main sugar found in fruit juice), and once the liver gets overloaded, it’ll turn that sugar into fat build-ups and may eventually start resisting insulin.
3. A lot of the fibre that should be in fruit juice is in the fruit’s pulp, which is not included in your average glass of juice. With fibre out of the equation, it’s harder to justify the sugar intake vs. nutritional value gained from drinking juice.

Verdict: Fruit juice is a treat, not a replacement for actual fruit or vegetables.

 

#4: It’s Possible to Contract Sexual Infections from a Toilet Seat

Good news! You cannot contract sexually transmitted diseases and infections from a toilet set.

Why? According to doctors, these bacteria and viruses aren’t able to survive out of the warm, moist environment that is the body for very long – and they definitely can’t live on the cold, hard surface of a toilet seat. Plus, the parts of your body that are susceptible to contracting these things aren’t actually in contact with the seat when you use the bathroom.

Verdict: Forget about contracting STDs and STIs from toilet seats. The real concern is getting sick from coming into contact with door handles, flush buttons and other surfaces that have been touched by people with unwashed hands.

 

#5: Sun Protection Makeup Can Replace Sunscreen

This is a tricky one. Theoretically, foundation or moisturiser with SPF qualities (preferably SPF 30) will protect your skin from the sun. However, in practice, most women don’t apply enough of it to be fully protected, nor do they reapply throughout the day.

Sunscreen takes two to three hours to lose its effectiveness, so unless you’re going to reapply your foundation at least twice a day, sun protecting make up just isn’t as good as sunscreen.

Verdict: Chances are, you’re not applying enough makeup frequently enough to get sufficient sun protection. When you consider that so many skin cancers are found above the neck, it makes sense to incorporate regular sunscreen into your skin care routine.

 

#6: Chewing Gum Stays in Your Gut for Years

Most of us were told as children that we’d better not swallow our gum because it will take seven years to digest and/or it will collect with the other gum you’ve swallowed and create a disgusting gum ball that will eventually clog your internal organs and kill you.

Fortunately, scientists agreethat these rumours are completely unfounded. Chewing gum doesn’t “stick” to your insides, and your body can usually pass foreign bodies out of