Me Covered

The Basic Facts

If you are employed and rely heavily on your income to pay your mortgage and other debts, then it is time for you to consider having income protection insurance. This type of policy will give you peace of mind knowing that you will still have an income in the event that you are unable to work due to an illness or injury. The benefit from income protection will enable you to not only service your loans, but also maintain your lifestyle until you are able to resume work.

Tax Deductibility

It is important to understand the benefits you will get from income protection insurance and tax regulations affecting your policy. Income protection insurance is tax deductible because the benefit you get is regarded as a substitute to your regular income. In case you had taken out your income protection insurance as a combined policy with your death policy, you can still claim tax deduction.

You will need to show what part of the premium is used to pay for income protection, and you can then claim a tax deduction based on this amount. Your insurance provider will be able to advice you on how much of the premium is used to pay for income protection. If it is not possible to define what part of the premium specifically pays for income protection, then you will not be able to claim for tax deductibility.

Non Eligible Situations

There are instances when you will not be able to claim tax deductibility for your income protection insurance. If you have a policy that is meant to pay your benefit as a lump sum amount, you will not be able to claim tax deductibility. You will also not be able to claim for tax deductibility if you have taken out your income protection insurance through your superannuation fund.

Income Protection Through Employers

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If your employer has taken out an income protection insurance policy on your behalf, then the company can apply for a tax deduction. However, when the benefit is paid out to you, it will be taxed since this benefit is treated as an income for you.

Claims

Once you make a claim for tax deduction, the amount you get will depend on your marginal tax rate, which is the highest tax rate that you are supposed to pay. If you successfully make a claim and are paid the benefits, then you should include this payment when making your tax returns.

When your income protection cover is within the super fund, you have to satisfy the insurance provider and the trustee of the fund on the legitimacy of your claim before any benefit can be paid out. If you are able to satisfy both parties that yours is a legitimate claim, the insurance provider will pay your benefits to the trustee, who will then pay you. This process sometimes ends up causing delays.

Making Savings

You can make savings on your income protection insurance, and tax reduction can also be achieved. All you need to do is pay your premiums yearly or every six months. This payment, however, has to be made before the 30th of June. This helps you push your tax deduction forward, so you will end up with less tax. Visit us for more information about income protection insurance.

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Income Protection Insurance Australian Super – The Upside and Downside

The future is very unpredictable, and there are events that take place that can easily paralyze you financially. One such event is if you are unable to continue working due to an illness or injury. The inability to earn an income can completely throw your life in disarray, which is why having an income protection insurance cover is of utmost importance. You can decide to take out standalone income protection insurance, although Australian super funds also offer income protection policies.

Advantages

If you decide to have your income protection insurance within your superannuation fund, there are certain benefits. For instance, your premiums are likely to be much cheaper than if you had a standalone policy. This is because your super fund purchases income protection as a group policy, and is therefore able to purchase the insurance at wholesale prices, and these low costs are then transferred to you.

You do not have to go through the hectic process of health and lifestyle assessment when you take out your income protection insurance. Australian super funds will include you in the group policy and the whole group will be covered irrespective of individual circumstances. This means that as long as you are a member of the super fund, you will be accepted unconditionally for an income protection cover.

In case you have an occupation that is deemed risky by insurance providers, this will not be an issue if you take out your income protection in your super. This is because you are included in the group policy. You will also end up paying for your premiums at a competitive rate since you are paying using your contributions to the fund. These contributions are taxed at a rate of 15 per cent. When paying for a standalone insurance policy, you will have to pay from your after-tax income, which may attract a tax rate of up to 45 per cent.

Disadvantages

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Once you have taken out your income protection insurance in an Australian super, you cannot claim for a tax deduction. Making a claim is also complicated because you have to satisfy the conditions of the insurance provider as well as those of the trustee of the super fund before any benefits are paid out. Even after the claim is deemed successful, the insurance provider will pay your benefits to the super fund trustee, who will then pay you. This process is not only lengthy, but may cause delays in accessing your benefits.

Some superannuation funds offer you a maximum benefit period of only two years. This may not be sufficient for you, especially if you have suffered an injury that may take longer to heal. You may also end up getting a very limited level of cover and benefits that may not address all your needs. The funds that are meant for your retirement are the ones used to pay for your premiums. This means that your retirement funds are eaten into and by the time you withdraw your retirement benefits, they may not be enough to take care of you in old age. Click here for more information about income insurance cover.

Decision

It is important to weigh the benefits and downside of income protection within a super so you can make the best decision for your situation.

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Income Protection Insurance Adelaide – Know Your Options

Income protection insurance helps you to get back on your feet financially when you are unable to work due to illness or injury. If you are in full time employment and normally use your income to pay for significant debts like mortgage and day to day expenses, then it is critical that you have income protection insurance. Adelaide insurance companies offer various insurance options to help you and your family maintain your lifestyle as you recover till you are able to resume work.

Types Of Income Protection

There are several types of income protection insurance in Adelaide. There is that which is provided by insurance companies, which covers you for up to 75 per cent of your income. It offers you the widest range of benefits and provided that you pay your premiums, the insurer is not allowed to cancel your policy. The insurer will also not be able to change the terms of your insurance policy once you have taken out the policy.

The other type of income protection insurance is the group salary continuance that is taken out by employers for their employees. You will be covered for up to 75 per cent of your salary, but the policy is normally very general and does not address your specific circumstances.

General insurance companies also provide income protection known as sickness and accident insurance. It covers you for specified sicknesses and accidents, but the policy is usually offered at a fixed rate. The biggest problem with this policy is that the insurance provider can cancel the policy. Once you make a claim, the insurance provider might decline to renew your policy, leaving you exposed and vulnerable.

Premiums

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Premiums are calculated differently for income protection insurance. Adelaide insurance providers will normally base your premiums on your age; your premiums continue to increase as you grow older. If your premiums remain the same, then your level of your cover will reduce as you grow older. Your gender, health, occupation, and whether or not you smoke will all be factored in when calculating your premiums.

Benefit Period

The benefit period is the length of time during which you will be paid once you are unable to work. Normally, most income protection policies will pay you up to the age of 65 years, or you can choose the number of years that you prefer to be paid. If you choose a longer benefit period, then the premiums you will pay are likely to be higher.

Waiting Period

The waiting period refers to the time within which you will not be paid your benefit once you are unable to work. The insurance company will allow you to pick the waiting period that you prefer, which may range from 14 days to 2 years. If you have a shorter waiting period, your premiums will be higher. It is therefore advisable to consider selecting a longer waiting period.

In the event that you will be out of work, you can use other sources of savings during your waiting period. Your waiting period may be waived if your insurance policy has an accident benefit. This means you are entitled to your benefit immediately if you are involved in an accident that leaves you unable to work. Click here for more information about income insurance cover.

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Insurance Made For You

You deserve a life filled with stability and peace of mind, and you can achieve this by taking out life insurance. Bupa life insurance enables your beneficiaries to get a lump sum payout when you die. With Bupa life insurance, you are assured of getting the policy that best suits you. You will be able to choose the cover that addresses your needs and the amount you know can comfortably take care of your family’s needs in the event of your demise.

Flexibility

Normally, you will need to take a medical examination in order to get life insurance. Bupa life insurance, however, does not require you to have a medical examination or blood tests. When you apply for this life insurance, you will be able to pick from several options, including cash insurance, funeral insurance or injury cash insurance. Your insurance application will be accepted as long as you meet the age limits. You will also be able to choose how you will make your payments, whether monthly or annually.

Products

There are several products available that you can pick from with Bupa life insurance. You can decide to take out death insurance, and you can select from death by any cause, death by accident, and terminal illness.

Features

You can apply for a maximum life cover amount of 500,000 dollars if you are between 56 and 64 years, but the maximum amount increases to 1,000,000 if you are in the age bracket of 16 to 55. You can apply for Bupa life insurance if you are a permanent Australian citizen. If your death is as a result of a car accident, then your beneficiaries will be eligible for motor vehicle accident payout. This is an additional 20 per cent, which will be paid out together with the death benefits.

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The cover indexation benefit allows your insurance provider to increase your insurance amount every year to keep up with the prevailing inflation rate. Your insurance cover will normally be increased at a minimum rate of 5 percent. The funeral expense benefit will provide your family with an advance amount of 15,000 dollars to assist with the costs for your funeral. Your cover is guaranteed as long as you promptly pay your premiums. You will also get protection globally, 24 hours a day.

When you take out a life insurance policy, your premiums normally increase every year as you grow older. However, with Bupa life insurance, you will pay a fixed amount of premiums for the first three years, unless you decide to increase your cover within this time. If you decide to take a large amount of cover, then you will be eligible for discounts. Click here to get more information about life insurance cover.

Applying For Cover

It is important to read the product disclosure statement before making a decision to purchase life insurance. Bupa life insurers will offer you all the information you need to enable you to make an informed decision. After taking out the insurance cover, you may decide it is not what you wanted. Bupa insurers give you a window of 14 days within which you can cancel your policy. If you cancel the policy within this time, you are not penalized in any way and you receive a refund for any premiums you have paid.

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Combining Benefits To Suit Your Needs

Despite the fact that life is very unpredictable, you have the choice of preparing for the inevitable. Life insurance benefits ensure that once you die, your family will be able to access a lump sum payout or pension payments to enable them continue their lives without interruption. The benefits will ensure that they will be financially stable enough to pay for day to day bills, pay for mortgage, the children’s education, pending medical bills and any other debts you may have left unpaid before your demise.

Features

Most life insurance benefits can be paid out even before your demise. If a certified medical practitioner ascertains that you will not live longer than 12 months, you will be able to access 100 percent of your life insurance benefits. If you are married, your premiums can be 5 percent cheaper. You can achieve this by taking out a joint life insurance cover with your spouse.

You will need to renew your life insurance policy when the current term ends. Whenever you renew your policy, the premiums will increase because you will have increased in age. The insurance provider considers you as being more risky as you get older. The insurance provider can also increase the premiums based on the prevailing consumer price index. However, the premiums remain the same as long as your current term has not ended.

Protection

When you decide to take out a life insurance cover, there are certain features you can incorporate into your cover to ensure you have a comprehensive policy that covers you wholesomely. A mortgage protection within your life insurance benefits ensures that if you suddenly die or are disabled, your home will not be sold.

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An estate protection will ensure that there are funds set aside to enable the proper division of your estate. This removes the risk of other interested parties trying to interfere with the division of your estate. Debt protection ensures that there are funds to pay for all debts, while family protection ensures there are enough funds to enable your family maintain their current standard of living into the foreseeable future.

If you are in business, a partnership protection will enable your partner to buy your share of the business, while a key person protection will compensate your business for your demise. A business loan protection will enable your business to pay off loans in your absence if you are a key person in that business.

Benefits

There are certain life insurance benefits that can be incorporated into your policy. Your sum insured can be indexed, whereby your sum insured is increased at the same rate as the consumer price index. This is usually done on every anniversary of your policy, and the insurance provider will reflect the changes without requiring any further medical details or information from you. The funeral expenses benefit is paid out to your beneficiaries to help in off laying your funeral expenses. Visit us for more info.

You can also have a financial planning benefit that provides funds to your beneficiaries to help them hire a certified financial consultant. The consultant should be approved by the insurance company, and will draw up a financial plan for your beneficiaries.

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Do You Still Believe These Insane Myths About Life Insurance, Brisbane?

Have you ever met someone who bought insurance for only half the value of his/ her car? That’s completely insane, right? Unfortunately, that’s the exact thing that happens when you purchase insufficient life insurance – you’re literally buying half or even less of what you need. Such an unfortunate circumstance has to do with many pervasive myths that Australians have concerning life coverage.

Here are a couple of myths that you definitely must eradicate if you intend to get the best from life insurance, Brisbane.

Today’s Expenses Are More Important Than Tomorrow’s Needs

According to a 2014 survey by MetLife and FSC, approximately half of the respondents indicated that current expenses present their main barrier to purchasing insurance. This is because they perceive current needs to be more urgent than future needs. However, when looked at critically, why would anyone decide to build something that will simply crumble in the future?

Just as you put in resources to improve your current state, you should also put in as much effort to ensure that whatever, you’re working for will not get destroyed in future.

This perception sounds much like the reasoning that keeps many people from putting aside savings for the future. People tend to get caught up with the current needs, so much so that they hardly think of the future. If you truly value your life, you must treat your future with as much regard as you do your present. Only then will you be able to secure your financial state and that of your family, to withstand all the shocks and surprises in life.

Insurers Never Pay

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Shockingly, more than half of the respondents interviewed in the 2014 survey by MetLife and FSC revealed that they hardly trust insurance companies to honor claims made by policy holders. Even from a cursory point of view, this perception is quite surprising, especially since no company would ever have lasting business if they didn’t actually offer any real value to their customers.

Remember that many of the highly reputable insurers have been in business (quite successfully too) for many years.

One thing that would-be policy holders need to understand is that as much as insurers seek to give a service, they must also make a reasonable profit out of it. Otherwise their businesses wouldn’t be in operation for long. This means that they will assuredly reject payment of fraudulent claims, which are designed to fleece the company.

If you heard of anyone not being paid their dues, try to find out whether they really had a legitimate claim or not, before you conclude that the insurance company was at fault.

Moreover, if indeed anyone has been wrongfully denied his/ her dues by an insurance company, there exist several avenues through which such grievances can be handled. The process of contesting any non-payment by the insurance company is always clearly elaborated by insurers within the product disclosure statement provided to each policy holder. This process would involve supervisory bodies that have legislative powers to correct any misdeeds by insurers. Click here for more information about life insurance coverage.

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Best Arguments for Getting Coverage – Not What You Expect

Just as people would likely have their reasons, whether genuine or mistaken, for not getting coverage, there also exist countless reliable arguments why you should get life coverage. Here are some of the best arguments why you need life cover.

Life Insurance: Best Way To Prove Your Faith In The Future

Contrary to common perception, getting life coverage is not an indicator that you expect bad things to happen. Rather, it actually shows that you have confidence in the future; therefore, you’re willing to invest in it.

Only a rational thinking person is wise enough to understand that the likelihood of unexpected occurrences is quite high. Indeed, the Australian Institute of Health and Welfare indicates that in 2009 Australian males had a 50% chance of getting a cancer diagnosis before reaching 85 years of age, while females had a one in three chance of receiving the same diagnosis. In light of such circumstances, such a person is not fearful of the future. Instead, by buying coverage, he/ she is doing what any reasonable person would do when faced with impending crisis: developing a disaster management plan.

Guaranteed Payment From The Start

Anyone who has been in business or possesses any form of investment knows just how much patience it takes to ever get any real benefits from the resources put into such investments. Unless by an out-of-the-ordinary chance, you can hardly get back your investment with a profit, just as soon as you put your money into it. Life coverage is clearly different from this.

Once you purchase coverage, you are assured of guaranteed payment when you lodge a legitimate claim. This gives you a much greater sense of security than you would have with any form of investment.

The Direct Opposite Of A Business Investment

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Another interesting aspect is that you face the risk of losing investments in the unfortunate circumstance that you become incapacitated, hence unable run your business competently. This is the direct opposite of what happens when you have life insurance best with a total and permanent disability cover rider. In such an instance, you actually benefit at the time when you are physically incapacitated instead of losing out, which happens with business investments.

Therefore, if you thought that your business venture and investments could simply replace your need for life insurance coverage, you surely need to re-evaluate such mistaken assumptions.

A Never-changing Assurance Of Financial Security

We’ve all heard of businesses closing shop due to downturns in the market or savings being depleted due to emergency needs. Such incidences reveal just how volatile and unpredictable business investments can be and how prone savings are to being depleted. This is clearly different from life coverage, which offers a guaranteed benefit payment that never changes regardless of the changing market dynamics.

The only time life cover benefit payments can be accessed is when a policy holder passes on or is terminally ill. Meaning that the money cannot be used recklessly, as it is with easily-accessible savings. This provides greater assurance for the financial security of your dependents. Visit us for more information about life insurance cover.

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Guiding You To The Best Life Insurance

There is a myriad of insurance providers in the market, so you can imagine the wide variety of insurance policies that are on offer. Trying to identify the insurance policies that are best suited for you can be very confusing and it is at such a time that a life insurance broker comes in handy to assist you identify what best suits you, enabling you to reap the maximum benefit from an insurance policy.

Research

The main responsibility of a life insurance broker is to research the life insurance policies that are offered by the leading insurance providers. They will also take the time to compare the different life insurance combinations that are offered by the different companies. This means that by the time you approach them for advice, they know exactly what is in the market and can point out to you what would best suit your needs.

Specialization

A life insurance broker specializes mainly on life insurance policies. This is because life insurance is a weighty matter that requires the broker to focus on the life insurance products offered in the market. This ensures they have an upper hand when guiding you to making an informed decision. You can always send them questions online and they will normally get back to you in the shortest time possible with helpful answers.

Quotes

The most convenient way of getting quotes from different insurance providers is by using the services of a life insurance broker. They normally have websites where you can enter your details in the form provided. Using your details and information from several insurance companies, these brokers will generate for you several quotes simultaneously so you can compare and decide what works best for you.

Insurance Calculator

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You will normally find a life insurance calculator on most life insurance broker websites. The calculator helps you determine how much cover you need, be it life, trauma or TPD insurance. Relevant information is requested from you and once you fill in the details, the calculator sums up the amount of cover that is appropriate for your lifestyle and circumstances.

Licensing

A life insurance broker is licensed by the Australian Securities and Investments Commission. To be able to offer you advice on life insurance policies, brokers normally hold an Australian Financial Services License. The broker will then be able to offer personal advice based on your financial situation, your needs and what you hope to achieve from the insurance cover. He or she will ask you to provide family details, your income and expenses, your assets and liabilities, any insurance covers that you may have and your health. In return, he or she will prepare a statement of advice which incorporates the products recommended for you and how you can go about getting the cover.

Discounts

In order to outdo the competition, a life insurance broker may want to offer you competitive discounts. You might get an upfront discount on your policy or you may get a discount in the form of rebates. These offers are normally very attractive, but you need to be careful about reading the terms and conditions of these offers as they may end up not being applicable to your case. Visit us for more information about life cover.

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Life Insurance Accounting – Understanding Insurance Computations

Life insurance accounting treatment is determined by the nature of the contract. Investment contracts, which relate mainly to wealth management products like superannuation and allocated annuities or pensions that have no insurance risk with non-discretion over the vesting of the benefits of a policyholder, are accounted for at the Australian International Financial Reporting Standards (AIFRS) at fair value. There are also contracts that may transfer a considerable insurance risk from the holder of the policy such as death or disability, or provide a discretionary participating benefit. These are known as life insurance contracts and they are accounted for using the margin on Services.

Margin On Services

Margin on services (MoS) is a financial reporting methodology that was developed in 1995 by the Australian Accounting Standards Board (AASB) specifically for Australian life insurance accounting. It applies to life insurance contracts that have been given out by Australian life insurers or their subsidiaries. In this financial reporting methodology, the value of future excesses expected to come up throughout the life of the contract is first of all determined then spread across the expected policy life. In other words, profits anticipated on life insurance contracts emerge over the business’ life as services are offered and income received, hence the term Margin on Services.

The liabilities of MoS are determined using a method of projection in which estimates of policy cash flows like premiums, costs, benefits and profit margins released in future are projected. The liability of the policy is calculated as the net present value of the projected cash flow. The liabilities of the policy are divided into two components; the value of future profit margins and the best estimate liabilities.

Margin On Services Versus Other Accounting Standards

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While international standards for accounting are still being developed, there is a variety of other accounting standards like the Generally Accepted Accounting Principles (GAAP) that is widely used in the United States, the Achieved Profit (AP) which is in use in the United Kingdom and other minor ones like the International Accounting standards (IAS) and the Modified Statutory Solvency Basis (MSSB), which is the official basis used by insurers in the UK.

The Margin on Services approach is a realistic basis of accounting that is based on deferral and matching of expense and revenue. This method is consistent for all lines of business, unlike methods like the US GAAP standard whose methods differ depending on the line of business. Click here for more details about life insurance accounting.

The Margin on Services methodology is tailored to give a steady profit emergence over the life of the insurance policy in the valuation of insurance liabilities. In the deferral of acquisition costs, Margin on Services is much more generous with regard to what can be deferred. In subsidiary valuation extends the concept of asset’s market value to the subsidiaries of a life insurer. A risk-free discount rate is adopted, but only in the event that the benefits that are entitled to the policyholder are connected to the performance of assets that back the contract. In this case, the discount rate is the rate of future earnings expected on the assets.

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Life Insurance Act Australia – Legislation For Insurers

The life insurance industry in Australia is mainly regulated by two bodies; the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). Both bodies have been given the mandate to protect consumers and businesses. The Life Insurance Act Australia ensures the protection of life insurance policyholders while also putting in place mechanisms to ensure the smooth running of life insurance businesses.

ASIC’s Role In Regulation

This is an independent body of government that concerns itself with the regulation of company and financial service laws by making sure that investors, creditors and consumers are protected by maintaining market integrity and conduct of advisers. Its main priorities involve ensuring the fairness and efficiency of financial markets, ensuring that licensing and registration is rightfully in place, making sure that the investors and consumers are well informed and capable of making sound decisions, understanding decisions made by the investors as well as the consumers, keeping the gatekeepers to account, and educating the investors on risk and reward so that they can make wise investment decisions. Some of the legislations that are administered by ASIC include the ASIC Act of 2001, the Corporations Act of 2001, the insurance Contracts Act of 1984 and the Superannuation Act of 1993.

APRA’s Role In Regulation

This body concerns itself mainly with the supervision and regulation of prudent practices of the banks, friendly societies, credit unions, life insurance companies and superannuation arrangements entitled to manage public funds. APRA mainly ensures that there are good management practices and standards through professionalism, foresight, accountability, integrity and collaboration. Some of the legislations that have been administered by APRA include the Banking Act of 1995, the General Insurance Reform Act of 2001, the Insurance Contracts Act of 1984, the Superannuation Industry Act of 1993 and the Life Insurance Act Australia of 1995.

Life Insurance Act Of 1995

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This Act ensures three main things: that the insurers give holders of life insurance policies benefit payments in the instance of a claim; that the insurers transact their business in a manner appropriate of them and that there is proper regulation of actual insurance sales. The Life Insurance Act protects the interests of policyholders and potential life insurance policy applicants while making sure that the industry maintains its competitiveness and inattentiveness.

Key Objectives Of The Act

The main objectives of this piece of legislation are to restrict life insurance sales to companies that meet the requirements to sell them, to put controls over the requirements for life insurers in order to ensure their prudent management, enabling the supervision of transfers and amalgamations, making provisions for the protection of policyholders in the event that a life insurance company goes under, enabling supervision of life insurance companies by both ASIC and APRA, and finally to make provisions for legislative management of “weak” life insurance companies. Visit us for more information about life insurance cover.

The Life Insurance Act Australia 1995 has outlined a variety of requirements for registration by ASIC or APRA. It has also placed strict regulations on the handling of statutory funds, solvency and capital adequacy, transfers and amalgamations as well as the appointments of judicial managers.

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Life Insurance Association Of Singapore – Bringing Life Insurers Together

The Life Insurance Association of Singapore is a non-profit body of life insurance and life reinsurance service providers that was founded way back in 1962. It comprises nineteen life insurers and four life re-insurers. The association is licensed by the Monetary Authority of Singapore.

Vision, Mission And Values

The vision of the association is to give peace of mind to individuals as well as to promote a society where individuals are prepared for changes in life and for unexpected situations. The life insurance industry mainly gives solutions for funding of retirement, wealth management, savings, long-term protection and investments. The Life Insurance Association of Singapore commits itself to being progressive by improving customer understanding, promoting best practices and fostering collaboration and mutual respect with the business leaders and the government.

The main values upheld by the association include being unified in the resolve to give innovative solutions where the best needs of the individual are met, professional in giving counsel, ethical in making sure that the best interests of the policyholders are kept at heart, open and honest in everything to build up trust and transparency, fair in the provision of favorable outcomes to shareholders and policyholders, and pro-active in the steps taken to give skill and knowledge to always give sound solutions.

Membership

There are two categories of members; ordinary and associate. Ordinary membership is given to life insurance companies licensed by the Monetary Authority of Singapore to conduct direct life business in Singapore. Associate membership is given to any company that does not transact direct life business. This is the category in which reinsurance companies lie.

Committee Membership And Secretariat

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All the ordinary member companies are elected to serve in the management committee to serve a term of one year. The President and the Deputy President are also elected on a yearly basis to serve a one-year term, and after their term is over, they remain eligible to contest for re-election to serve another term in office. However, the associate members remain ineligible for election. Associate members are also invited to attend committee meetings. However, they are not entitled to voting rights like ordinary members. A Secretariat is also in place and is guided by the three chief principles of incremental gains, clear direction and excellence in its work and service to the members.

Publications

The Life Insurance Association of Singapore has produced quite a number of publications, articles, studies, papers and newsletters that provide useful information with regard to life insurance. They include consumer surveys and protection gap studies among others. Click here for more ideas about life insurance.

The Association also provides useful information to individuals regarding investment-linked insurance plans, participating policies, nomination of insurance nominees and even health insurance. Aside from that, they also give much needed information in the event of making a claim or even when things go wrong; whether with the policy or with the company. The Association also has a resource library for life insurance business practitioners. They also monitor the performance of the life insurance industry on a regular basis and release information on its progress.

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Life Insurance As An Asset Class – What You Stand To Gain

An asset class describes a particular kind of investment. The types of investments that make an asset class include property, cash or even shares. Different asset classes carry with them different levels of risk. The more unpredictable an asset class is, the higher the level of risk it attracts. This higher level of risk, however, means that higher returns should be expected. When making a collection of your financial assets, also known as portfolio, it is argued that you should not ignore your life insurance as an asset class.

Diversifying

It is important that when making investments you plan to diversify the investments, as this helps in reducing the risks. You can diversify your investments by purchasing shares from different companies and by investing in different asset classes. When making a decision to invest in an asset class, you will normally check the type of investment and how it is linked to risk and return. In Australia, the main asset classes include cash, Australian and international shares, fixed interest, direct property and listed Australian and international properties.

Types Of Asset Classes

Fixed interest and cash investments are grouped in the defensive asset class. Fixed interest may include government and corporate bonds. These assets have a lower risk with lower returns in the long term. Australian and international shares and property are considered in the growth asset class. In the short term, they are very unpredictable, but may give you higher gains in the long term.

Why Life Insurance

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When you take out life insurance, there is normally a steady increase in the cash value of your policy. This steady growth coupled with the death benefits can help enhance your portfolio’s rate of return. Life insurance can be treated in the portfolio as fixed income. In most cases, the cash value of life insurance does not behave the same as stocks and bonds when there is a financial crisis. Once you include life insurance with bonds in your portfolio, you will find that the returns on life insurance will be higher than bonds as time goes by, and the risks associated with the cash value of life insurance will be lower.

Benefits

Including your life insurance as an asset class is advised because the rate of return is usually higher than that for bonds, and the proceeds from the insurance are awarded to beneficiaries without incurring income tax. You can also borrow against your life insurance without the burden of taxation. In the event that you are unable to repay your loan, the money will be deducted from your death benefit. Visit us for more information on how to cover your personal insurance.

Wealth Transfer

When you are planning your wealth transfer, you should consider life insurance as an asset class. This is because in the event of death, a known death benefit amount will be paid out to your beneficiaries. The death benefit may be unaffected by the performance of the financial market, and dividing the benefit among the beneficiaries is not an uphill task as there are instructions available from you as to who gets what. The death benefit will also be paid out to your beneficiaries without incurring federal estate taxes, which are subjected to the policyholder’s estate.

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Life Insurance Advice – Be Well Informed

There are so many insurance companies providing different life insurance products, so it is always a good idea to seek for life insurance advice so you can make an informed decision on the life insurance policy that will best serve your needs. Expert life insurance advice can be got from insurance companies or licensed brokers who are experienced in this field; they will be able to guide you on how to go about selecting a life insurance policy.

Information Required

In order to provide relevant life insurance advice, an expert will require certain information from you. You can either visit the insurance provider to provide the information required, or you can provide this information online. Online submission of your details can be done where the insurance company or broker have provided an online form that you can fill in on their website. Normally, you will be required to give your personal details, your current assets and liabilities, your expenses, income, dependents, health status and any insurance covers you may already have.

Advice

Once you provide the required information to the company, you will be contacted with advice on a number of issues. You will be guided on what your main objectives in taking out the life insurance should be and what your life insurance needs are. A range of insurance products that are best suited for you given your situation will be proposed, and guidance will be given on what to look out for when signing the insurance contract.

General Advice

If you feel you are not up to giving many details to the insurance experts to get personalized advice, there is a lot of general life insurance advice offered by insurance companies and brokers that can still assist you when deciding on the life insurance policy you need.

Age

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Most insurance providers will normally advice you to take out a life insurance policy when you are still young. The biggest advantage is that you will probably be in good health when you are young, so your premium rates will be lower. You insurance cover will continue being renewed even if you contract health conditions later on in life that you did not previously have. Taking out a life insurance later on in life could mean having health conditions that may cause your premiums to be higher.

Super Fund

It is a good idea to confirm whether you have a life insurance cover under your superannuation fund. If this is the case, there is no need to take out a standalone life insurance policy. However, you may be required to top up a certain amount to reach the level you need for your cover. Having your life insurance under super means you will have lower premiums and will make savings since the premiums are deducted from your pretax income.

Product Disclosure

The product disclosure statement is a must-read if you want to avoid any surprises when it comes to making a claim. This statement gives full details of the insurance cover and the benefits that come with it. Most importantly, the limitations are spelt out, click here to know whether it is the right cover for you.

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Life Insurance AARP – What You Need To Know

AARP is a combination of financial products made available to AARP members. AARP has relationships with the leading providers of life insurance, and therefore provides its members with information on the products that are offered by these companies. AARP does not endorse any of the products, neither do they own any of the life insurance products they provide information about. It is up to you as a member of AARP to use the information provided to gauge what the best life insurance policy for you is.

Life Insurance Program

The term life insurance AARP program has been designed specifically for AARP members. The members have to be aged between 50 and 80 years, and for those aged between 50 and 74 years, coverage can be up to $100,000. This cover is for a specified period of time. Normally, no medical exam is required; all you need to do is provide your health information to AARP. For permanent life insurance, members between 50 and 80 years can get a cover of up to 50,000 dollars. This policy covers you for your whole life.

Benefits

The life insurance AARP payout will enable your dependents to handle their day to day living expenses, enable them to pay off your mortgage, credit card and other debts, and your medical expenses. The rates, which are affordable, increase over time. This policy does not have a waiting period, meaning you will be able to enjoy coverage of the full amount from the very first day you take out the insurance. Some product features, however, may not be available in every country.

Switching

If you take out term life insurance, AARP membership will enable you to exchange your term life insurance for a permanent life insurance policy without having to take a medical exam. The rates, however, may change depending on your age at the time you are making the switch.

Money-Back Guarantee

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When you take out life insurance, AARP membership will allow you to reverse your decision. This means that if you are unhappy with the insurance policy and decide to cancel it, you can return your certificate of insurance and your payment will be refunded. However, the refund will only be possible if you return your certificate of insurance within 30 days.

Stability Of Benefits

The benefits you are supposed to get from your life insurance with AARP remain constant throughout the period you are covered. You therefore need not worry if your health deteriorates at some point, since your current state of health will not affect the benefits you were entitled to from the onset.

Accessing Benefits

As an AARP member, you will be allowed to access half of your benefits in the event you get diagnosed with a terminal illness. You will also have access to half of the benefit amount if doctors give you 12 months or less to live due to illness. The only drawback is that this amount may have to be taxed and not all states and countries offer this benefit.

Premium Waivers

If you are confined to a nursing home by a doctor’s order, your premiums will be waived once you have been in the home for 180 consecutive days, but your cover will remain in place. Click here to know more.

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Life Insurance Allstate – Products And Services Offered

Life can be very unpredictable and planning ahead helps to ensure you have peace of mind knowing that your loved ones will be financially stable in the event of your demise. A life insurance payout to your beneficiaries will enable them to pay for daily expenses, mortgage, education, pending medical bills and even funeral expenses. Different insurance companies offer different types of life insurance. Allstate offers life insurance through its subsidiaries, brokers and insurance companies.

Getting Insurance

In order to get life insurance for the first time, you can use the Allstate website to guide you on how to identify the best policy for your situation. The life trek tool is designed to collect relevant information from you, which can then be used by Allstate staff to assist you in getting a policy tailored to your needs. You will be required to provide your names, gender, marital status, age and number of children.

You will also provide your preferences on certain issues and based on your answers, the tool will generate for you suggestions on the type of policy that would be suitable for you. You can use these suggestions to discuss further with an Allstate agent the most suitable policy for you.

Amount Of Life Insurance

You can use the online life insurance Allstate calculator to compute the amount of life insurance you will need. You are required to enter the number of years for which you require the insurance and the assets that you have including cash, savings and other investments.

You will need to identify your expenses at death, including funeral expenses, debts, children’s education and medical costs. You also need to calculate your family’s future income and expenses. All these are calculated against the interest rate for your savings, the inflation rate and the federal tax rate.

Quote

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Using the information from the calculator, you can request for a quote from Allstate. You can still contact an Allstate representative to discuss the contents of the quote before making a commitment to sign the insurance contract.

Types Of Life Insurance

There are normally three types of cover under life insurance. Allstate provides term, universal and whole life insurance. Currently, term insurance is offered by Australian insurance companies.

Features Of Term Life Policy

The term life insurance policy normally has affordable premiums, and the rates you will pay will depend on your age and medical history. During the duration of the policy, the premiums will not change. You will normally be allowed to choose the length of time you want your policy to be valid, which can be between ten and thirty years. Your premiums will remain constant until your insurance policy expires. Once this happens, you may be eligible to renew the policy or purchase a new one. Visit our website for more information about life insurance policy.

Types Of Term Life Policies

You have the option to select your preferred term life insurance. Allstate companies will normally offer you basic term or true term life insurance. With basic term insurance, the period of cover is 15 years and you get to choose your payout benefit amount. For true term insurance, you will have 5 layers of cover to address your financial needs that are short term, and you can select the time and coverage amount.

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Life Insurance Agent – The Agent’s Role in Selling Insurance Policies

A life insurance agent is a person who assists individuals, families and even businesses to safeguard themselves against financial ruin in the event that a significant person in the family or business dies or has a terminal illness. They do this by selling life insurance policies to companies and individuals alike. The agents are hired by insurance providers to sell their insurance policies to various clients.

A life insurance agent is responsible for contacting potential clients and making appointments to meet with them. You should therefore not be surprised if you get an unexpected call from an insurance agent wanting to discuss life insurance policies with you.

Appointment

During the appointment, you will normally be given the chance to explain what your expectations are, and based on these, the life insurance agent will be able to advise you on the appropriate life insurance policy options that can be availed to you by the insurance provider. Several details will be explained to you, including the premiums you will be paying and the amount you will be able to claim should the event insured against occurs. Details of the risks that will be covered by the insurance policy are also discussed so you will have a clear view of what to expect once you take out the life insurance policy.

Critical skills

You can easily identify a good life insurance agent as they normally have very good interpersonal and communication skills. This is because they deal with all sorts of people on a daily basis. Whichever type of client they call or meet, the agent always has to remain professional as they create awareness and educate clients on the various policies that are available. A good insurance agent should also be good with numbers, and should accurately be able to work out with you the premiums you will be paying and the amount of money you or your dependents will be able to claim.

Mobility

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Life insurance agents are very mobile, and they will be able to come to you at their own cost to discuss the insurance policy that is best suited for you. You can also contact them at their offices if that is more convenient for you.

Commission

Once you have discussed the details of an insurance policy with the life insurance agent, he or she will normally prepare a quote for you. If you are satisfied with the terms provided in the quote, the insurance agent will guide you in signing an insurance contract. You will then begin to pay monthly premiums to the insurance company. At the end of the first year, the insurance agent will be paid about 30 to 90 per cent of the premiums you will have paid. In subsequent years, however, the amount paid to the agent may reduce to about 3 to 10 per cent. Click here  for more details about life insurance agent.

Becoming an agent

In case you are interested in becoming a life insurance agent, the first step is to prepare your resume, which should highlight instances where you have been a go-getter. Reputable insurance companies will normally post vacancies for insurance agents on the internet, and you can check the various vacancies and apply for a position that best suits you.

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Best TPD Insurance – Choose the Best Policy

Total and permanent disability insurance is a policy that covers you in the event that you become completely disabled and unable to work to earn an income. However, different insurance providers will offer products with varying levels of coverage. As such, it is important to take the time to consider all your options before you make the decision to purchase any particular TPD insurance product. Generally, the best TPD insurance is one that provides adequate coverage for you and your family at a rate that you can afford.

How is TPD defined?

The level of cover that a TPD insurance policy provides is largely dependent of the total and permanent disablement definition provided in the policy. A broader definition will provide greater coverage and will probably cost you more. If a policy refers to disability as the inability to earn an income, the insurer may not cover you if you can earn an income in some way even if it is not your occupation of choice. If the policy describes disability as total physical loss, the loss has to be in pairs – either both eyes, both limbs, or an eye and a limb.

Benefit amount

The cost of your TPD insurance policy will be determined by a number of factors. One of them is the level of coverage that you choose or the benefit amount you would get in case you become disabled. While many people choose this amount by multiplying their annual income several times over, it is important to think about the particular needs you may have in case you can no longer work. This includes your family expenses, the medical costs you would incur as a result of the disability and repayment of debts.

Policy rates

When you are considering the cost of the total and permanent disability cover, remember that several other factors will influence the rates you get. These include your age, gender and lifestyle options. For instance, a man in his late twenties is likely to get rates that are more favorable than those that a man in his fifties would get. In addition, if you smoke or have a preexisting medical condition, this would also mean higher premium costs.

Online insurance quotes

TPD insurance quotes are a great resource when you need to find different policies you can comfortably afford. Note that it is critical to ensure your premium payments are current. Missed payments could easily mean losing out on the benefits when you require them. With online TPD insurance quotes, you get to compare the different policies on offer so you can focus your research efforts on the policies you can actually afford, visit Money Smart for more info. The best TPD insurance policies in such a case would be those that offer a total and permanent disablement definition that is most favorable.

There are several considerations to be made when purchasing your TPD insurance policy. For instance, you can choose to take out your policy through your superannuation fund or get a standalone policy from a private insurance company. In addition, you may opt to bundle your TPD insurance with life insurance or trauma insurance. Getting expert advice is also recommended when you want to get the best TPD insurance.

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