October 17, 2018

How to Apply for a Life Insurance Policy

Some people don’t want to talk about leaving their families behind but the reality is that unfortunate events happen and it’s important to do whatever we can to ensure that our loved ones will have enough funds for their needs if we pass away. If we become sick or injured and can no longer go to work, we need to have something to depend on to pay off our debts. For you and your family’s security, consider getting a life insurance plan.

Life insurance in Australia varies in features and coverage, catering to the specific needs of different people. With so many options to choose from, it is best to compare life insurance from different insurers. Weigh their pros and cons to narrow down your selection. Also, consider your personal needs, lifestyle, and preferences.

In this article, let’s take a look at how to apply for life insurance in Australia:

  • You can buy life insurance from insurance companies, insurance brokers and financial advisers, as well as your superannuation fund.
  • Determine how much money your family will need if something unfortunate happens and you will not be able to support your family financially. Knowing the amount of money that you need will help you identify the right level of coverage. Don’t forget to include all the day-to-day expenses and the regular repayments such as mortgage. It will also be great if you can include future expenses such as university education.
  • Know the offerings. As with any other type of insurance, take time to do your research and see what’s on offer. For instance, if you get life insurance from your superannuation fund, it will usually have low-level cover either for illness or death. Whether you use your super or buy life insurance from an insurer, make sure that the cover is enough for your family to live comfortably.
  • Compare life insurance from several insurers. Make sure to get a few quotes and compare their cover, additional benefits, discounts, and any other aspects that can affect your decision-making process.
  • Get the most out of your life insurance. Once you’ve chosen your insurer, ask if they offer extra benefits such as getting significant savings if you pay annually instead of monthly or quarterly.
  • Understand the policy’s terms and conditions, limitations and exclusions. Many just browse through the terms and conditions and just sign the product disclosure statement. Make sure to carefully check the terms to avoid any inconvenience later on.

Do you have other ideas when it comes to life insurance in Australia? Share your insights in the comments section.

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How to Choose the Right Life Insurance Policy

There’s no question about it – insurance is important. Nothing beats having the right protection and peace of mind when something unfortunate happens in your life either to you or your property. With so many insurers offering different types of insurance in Australia, not to mention the many different factors to take into account, choosing the right life insurance policy can be difficult.

Here are some of the things that you need to get the right insurance:

Tip #1 Determine your requirements

The first thing is obviously to know what you need the life insurance policy for and the type of coverage that you need. For instance, the requirements of someone who is single are different from someone who is married and has kids.

Tip #2 Compare the offerings of several insurance companies

Not all insurers are the same, so it pays to do your research and compare them in terms of ease of the application, tenure in the industry, reputation, etc. You can get information online or even ask family and friends who have firsthand experience with getting life insurance.

Tip #3 Know the different types of insurance

When you do your research, you’ll come across an array of insurance policies that cater to the different needs of different people. Understanding the different options will help you in the decision-making process.

Tip #4 Decide on the right level of coverage

Whether it’s car insurance or life insurance, the price plays a huge role when choosing the right policy. To know the right amount of insurance to get, consider factors such as your age, income, expenses, debts, the number of kids that you have and their ages, etc. Seek insurance advice from a qualified individual. You can also use a free online calculator if you want to know the estimated figures.

Bear in mind that while some policies have the same premiums, they differ in the levels of cover. That’s why it’s important to read and understand the Product Disclosure Statement carefully to know which policy meets your financial requirements, lifestyle, and preferences.

Do you have other ideas on types of insurance in Australia? Share your insights in the comments section.

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What is Public Liability Insurance?

When it comes to Australian insurance, you’ll discover that there are numerous types and features. Different insurers offer a wide array of insurance products that cater to your almost every need. There’s car insurance, life insurance, home insurance – all to provide protection in case something unfortunate happens.

One of the many types of insurance in Australia is public liability insurance. It is for professionals whose jobs include interacting with customers and other people. With this insurance, you will be protected against claims of personal injury or damages to the property of a third party due to the activities of your business. When you’re providing a service and something bad happens to the other party, they may take legal steps against you.

But if you have public liability insurance, your business will be protected and you will be relieved of paying for any legal expenses. Keep in mind, however, that this type of insurance covers only the claims made by other parties. It does not offer protection against claims made by your own employees.

It doesn’t matter what industry you’re in. An accident can happen at any time, and when something goes wrong, it will be a huge relief for you if your business will be protected against any claims.

When it comes to public liability insurance, here are some of the things it may cover:

  • Legal costs from settlement of a claim
  • Damage or loss of goods
  • Damage or loss of property of the other party that happened in the course of you providing your service
  • Expenses incurred while giving first aid during the incident
  • Injury to others

It is likewise important to know the instances where public liability insurance doesn’t provide coverage. Some of these include:

  • Compensation for your employees who sustain injury
  • Punitive damages
  • Recall of products
  • Aircraft products
  • Liquidated damages
  • Liabilities that are assumed under contract but you would not be liable for at common law

To know if getting public liability insurance is worth it, make sure to do a lot of research. You can likewise seek advice from a qualified individual who can explain to you in detail what this type of insurance entails, and how it can protect your business.

Do you have other ideas about public liability insurance and different types of insurance in Australia? Share your insights in the comments section.

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Understanding Compulsory Third Party Insurance (CTP)

Life can bring unexpected surprises. No matter what your age or background is, there are numerous circumstances that we cannot control. And for these instances, it is essential to have something that will give us the protection that we need to avoid further inconvenience and shelling out a lot of money.

This is where the insurance comes in. It comes in many types and forms, but the main purpose of the insurance is to provide protection in case something happens – to your health, life, and/or property. Most Australians have car insurance. It comes in many types, one of which is Compulsory Third Party insurance (CTP).

In this article, let’s delve into what CTP means and what it is for:

  • Compulsory third party insurance comes with the registration of your car or vehicle. It covers compensation for the victim if you are at fault in an accident and injure another person. The other person could be the driver of the other vehicle, the passengers, or a pedestrian.
  • If the accident results in people being unable to go to work, or if those who are injured need medical treatment, your CTP insurance provider will pay an amount to cover the medical expenses and/or the loss of income because of the accident.
  • As a car owner, it is mandatory to get CTP insurance. It offers protection not only for those who are injured but also for the at-fault driver or the one who caused the accident since he/she will not have to personally pay any compensation.
  • Keep in mind that different states have different processes when it comes to CTP insurance. For instance, in Queensland, it comes with your rego, following the same period as your rego. In other words, you’ll have coverage whenever you renew. Make sure to check the process related to CTP insurance with your state or territory department of transport.
  • Don’t be confused – CTP is different from comprehensive car insurance. While CTP insurance provides protection for those who are injured as a result of the accident, it doesn’t cover damage to property. If there are dents or scratches to your car, CTP will not pay any compensation for these.

Do you have other ideas when it comes to compulsory third party insurance or in general, car insurance in Australia? You can share your insights in the comments section.

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What is Business Insurance?

Managing a business is very challenging. It always puts your own finances at risky situations. It is wise and necessary to have knowledge on risk management to protect your business. The only way to do this is to have business insurance.

We use business insurance to protect our business from unexpected loss or damage just as we use health or life insurance for better medical care, or to prepare for future expenses like education, or funeral. It is a form of risk management that can dramatically lessen, or avoid, loss and expenses from damages.

Business insurance focuses on assets and revenues, liabilities, and employees. These are the following:     

  1. Professional indemnity. This protects you from legal action taken against you by an employee who suffered a loss due to management lapses, or by a client who is dissatisfied with your service.
  2. Business insurance covers damage to your building and its contents that is caused by certain events.
  3. Public liability. If you are liable for an injury or death, loss or damage to their property, or economic loss because of negligence, this covers your business for legal costs and compensation that you might be required to settle.
  4. Product liability. Businesses need cover against claims of goods or services that caused damage or loss, injury or death. Product liability cover protects you should your product or service failed your clients.
  5. Theft and burglary. This covers your business against loss or damage to your stock if burglary happens in your business premises, or if someone deceived you to gain access to your building. However, it does not cover cash losses as it is covered separately.
  6. This covers your money for theft at your premises and in transit.
  7. Your business can be interrupted by weather events, fire, flood, and other insured interruptions. This covers your loss when you can’t trade due to said events.
  8. Employee fraud or dishonesty covers loss of money, instruments or goods due to fraudulent or dishonest employees.
  9. Workers’ compensation. This is compulsory in all states with businesses with employees.
  10. Machinery/equipment breakdown. This covers machinery and equipment that you use in your business. This may also cover for damages to your products due to faulty or non-functional equipment.

Got other ideas on business insurance? Share your insights in the comments section.

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Do You Need to Get Insurance for Your Pets?

There are many types of insurance for our protection in case of certain unfortunate events.  There’s car insurance for your vehicles and life and health insurance for our family. Home insurance in Australia is also available. Likewise, there’s insurance for your pets. It’s a relatively new market that is worth exploring especially with the rising costs at the vet for your pet’s welfare.

Do you need to get insurance for your pets? Consider this: dogs and cats will, at some point in their lives, encounter life-threatening conditions, whether due to illnesses or a road accident. You can end up with a huge bill from the vet. In fact, it is said that many dogs are put down just because their owners cannot pay for the medical treatment.

With pet insurance, you can save yourself from the hassle of being in this condition. It allows you to claim part, or the full amount in some cases, of the vet bill according to the annual limit.  There are types of insurance for your pets that vary in coverage. The policies can be accident-only cover, illness-only cover or accident-and-illness cover if you’re looking for something comprehensive.

To determine how much cover your pets need, consider the maximum annual benefit of the policy. This refers to the total amount that you will pay every year. You can also consider the different features. Some may offer public liability insurance, for example.

In terms of benefit levels, these can be from $1,500 up to $20,000. Bear in mind that the animal, breed, and your location play a role in treatment costs of certain conditions such as dental issues, ligament injury or tick paralysis. Make sure to consult the vet to understand which health risks may be encountered by your pets.

While many medical treatments are included in the policy, there are also treatments that are not usually covered. For instance, preventative care, which includes parasite control and vaccination, is normally excluded from the policy.

In most cases, pets are considered members of the family, so it is better to get insurance for your pets, not only to ensure that you don’t have to face huge vet bills when something unfortunate happens, but also to give you peace of mind, knowing that your pets will be taken care of, just like the rest of your family.

Does your pet have Australian insurance? Share your insights and insurance advice in the comments section.

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What is a Beneficiary on a Life Insurance Policy?

We know that it is very important to have life insurance. This gives a lot of protection and financial assistance to loved ones when the policy owner passes away, not to mention the peace of mind it can provide, knowing that your loved ones will not struggle financially when you die.

As an essential form of insurance, we need to know and understand who and what are involved in a life insurance policy. You’ll be allotting money for it for a long period of time so you might as well know where your money is going and how it can benefit you and your family.

When looking for different types of life insurance in Australia, you will come across components or terms such as policy owner and beneficiary.

Policy Owner

As the name suggests, the policy owner is the one who owns the life insurance policy. From changing and/or adding beneficiaries, updating the coverage, and becoming the default beneficiary, to canceling the policy and paying premiums, the policy owner has full authority to make changes.


In a life insurance, the beneficiary is the individual who is entitled to receive the payment once the policy owner dies. There are two types of beneficiaries: primary and contingent.

  • Primary beneficiary – This can be your spouse, child, and or children, person who’s in an interdependency relationship with you, or someone who is dependent financially to you.
  • Contingent beneficiary – This can be one of more individuals who are also listed in the policy and will receive the life insurance payment if the primary beneficiary/ies die/s before the life insured.

Take note that if the beneficiary is a minor, you need to assign a guardian or trust to get life insurance funds. Also, a policy owner can have several primary and contingent beneficiaries and indicate the percentage each will receive. This enables the policy owner to fully control where the money will go

With several factors to consider, it is important to take time to research and understand the components of a life insurance. Compare your options and choose what fits your needs and preferences. You can likewise seek professional life insurance advice and/or ask friends for feedback on their own life insurance. Also, choose your beneficiaries well so you don’t have to worry about your loved ones and their finances.

Do you know other things that we need to consider when it comes to life insurance in Australia? Share your life insurance advice in the comments section.

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What is Income Protection Insurance in Australia?

Insurance in Australia comes in many types, features, and coverage. One of these is the income protection insurance. This provides assistance in covering your expenses in the unfortunate event of sickness or injury that prevents you from working. Based on your policy and with a successful claim, you can get income protection payments for the period when you are unable to work. This is very important for self-employed individuals, start-up entrepreneurs, and basically anyone who depends heavily on their ability to work.

There are many types of insurance and with so many things to take into account, choosing the right one can be a challenge. But with these tips and insurance advice, you can find what’s suitable for your needs:

  • Consider your own financial situation. Can you pay for utilities and other necessities in case you get sick or injured? Will your savings be enough for everyday expenses? There’s no one-size-fits-all solution when it comes to insurance in Australia, so take a good look at your own circumstances as no one knows your capacity to cover all expenses better than yourself. If you think you cannot handle your expenses without assistance, then it may be wise to get insurance.
  • Know how much coverage you need. In general, income protection insurance covers about 75% of your income in case you cannot go to work due to sickness or injury. To know the level of cover that you need, make a list of your standard expenses such as payments for mortgage and/or car loan as well as the number of your dependents, if any.
  • Know how much it will cost you. It depends on a lot of factors but in general, your premiums will be based on your age, gender, current health status, pre-existing conditions, occupation, and whether you’re a smoker or not.
  • Be honest with your insurer. Some companies require customers to give them a copy of their medical history. You also need to inform your insurer about any life event such as having a child or getting married as this can affect your coverage.

For those who are self-employed, have fixed expenses, and do not have dependents to provide for, getting an income insurance protection may be the ideal option. On the other hand, if you have family members to take care of, a life insurance may be a better deal. But then again, it really depends on your own situation.

Seek insurance advice from a professional to help you better understand the type of insurance that suits your personal requirements. There are a lot of professionals with excellent training and experience who can help you manage your risk appropriately by recommending the best products for your and your family.

Do you know other things worth-considering when it comes to life insurance in Australia? You can share your ideas in the comments section below.

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