It’s the silly season, and we are lucky enough in the insurance industry to see how silly people can actually be. Here is a fun illustration of some real statistics on the Australian Christmas!
Be safe over the Christmas break.
By Paul Davies
By Paul Davies
Many insurance plans in Australia are only accessible by brokers or advisers. The reason behind this is that life insurance providers sell more nuanced policies through brokers. Why? Because these financial advisers are responsible for educating their clients and ensuring that the coverage is appropriate for them.
"Insurance brokers or advisers don't work for insurance providers in particular. Instead, their responsibility is to collect quotations and other pertinent information to provide professional financial guidance on the policy's details. They'll then recommend which ones are appropriate for your needs and situation." says senior accountant Max Liane of Accountants Brisbane.
Many Australians have life insurance in their super fund. However, according to a new Finder survey, out of 1,500 Australian superannuation members, almost one-fifth of them were unaware that their super fund covers life insurance.
Therefore, wouldn't it be best if you engage a broker or adviser to guide and educate you on having Insurance for your super fund?
If you have second thoughts, read on the following advantages of working with a broker to help you decide.
Brokers Can Cost You Less Than Insuring Direct
Working with an insurance broker can be less expensive than dealing directly with an insurer. This is because these professionals are familiar with the insurance industry and the great promise to negotiate competitive rates on your behalf. Furthermore, since insurance brokers have connections with various insurance agencies, they often can work out insurance plans that aren't publicly available.
Brokers Don't Sell Insurance— They Work For You.
A life insurance adviser or broker works with a range of insurance providers. As a result, they are not tied to a single entity and are not under strain to hit revenue targets or thresholds or market one insurance policy over another. A broker's client, on the other hand, is their boss. Thus, a broker's sole goal is to help choose insurance coverage for their client's best interests.
Brokers Have Access To A Broad Product Shelf
A broker has access to a wide range of insurance options and deals for many prominent insurance providers. However, the price isn't the most significant consideration for most brokers when it comes to insurance. Instead, it is a broker's responsibility to be updated with all the functionality and benefits that each insurance provider can deliver for their client's lives, severe disease, or injuries.
Where To Find The Best Broker To Help You Get Covered?
Choosing the best life insurance package can be approached with caution as any of life's most significant decisions. After all, the insurance coverage will support your family in maintaining the comfort you worked so long to have.
If you go the do-it-yourself route or seek guidance from a broker, the decision is always yours. But remember that it's your family's future that's on the line. Hence, working with a professional with a proven track record is the best way to go.
Talk to Jarickson today if you're determined to secure your family, find your peace of mind and a life insurance package that suits your needs.
By Paul Davies
As part of the personal advice process means gathering a variety of personal details from you to work out what you may need in terms of financial advice. Financial Advisers are required by law to issue you with a variety of disclosure and advice documents, depending on the type of advice you are receiving.
Jarickson are specialised life insurance brokers, so you will only receive advice on products relating to this from us. We have a range of other professionals we have worked with over the years and trust in various professions. If we identify areas that you would benefit from, we can introduce you to them if it suits you.
Statement of Advice
A Statement of Advice, or S.O.A as it’s more commonly known, is a summary of the details you have given your broker and outlines the needs and objectives you spoke with that particular broker about.
If you think of it as a story of what you are looking to get out of the advice you are receiving, you will be spot on.
Once all this has been summarised, a series of recommendations of different insurances will be listed. This may or may not be something that decide to proceed with, but it will be a starting point of your discussions in how to get you and your family protected adequately.
Basically, the SOA is summarised in a few points:
1. Your details
2. Summary of your discussions
3. Your Needs and Objectives
4. Recommendations of products
5. Advice these products suit
6. Your acknowledgement
Your Decision
The result of this document is that you can see that the adviser has understood what you spoke about, can describe what you are looking for and outlines advice around how to achieve it.
Other disclosures such as how the adviser is paid will also be included for your reference.
After you have read through the document, it is your decision on the next steps. You can either agree to the recommendations or request further information or quotes.
This may be if the premiums are more than you think you can pay and need a lower version, or simply other choices that may be available from your discussions with the adviser. Either way, you can choose how to proceed from there.
If you are not receiving an SOA, it is NOT PERSONAL ADVICE. This means you are dealing with a salesman and they are not taking YOUR needs into account, simply flogging a product. So be careful.
If you want to ask more questions about it, please call us on 1800 674 435 or contact us below.
As always, any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors.
If you are unsure, or have questions about your existing policies, please feel free to contact us on 1800 674 435 or by completing our online form HERE
Jarickson’s mission is to help everyday people understand complex insurance advice. We explore the possibilities and help you find the most suitable coverage for you.
By Paul Davies
SMSF or Public Offer Fund – what’s the difference?
An important part of financial planning is setting up a super fund, but it can be tricky to decide which suits you best. In this article, I’m going to outline the key features and differences between self-managed super funds (SMSF) and public offer funds.
A financial adviser can help you with fund details and choosing a direction that suits your financial and lifestyle goals. Jarickson has specialist partners to help you along the way, so we’ve vetted and trusted these professionals personally, so we know you will be treated the same.
Fund membership
A SMSF can only have five or fewer members, all of whom must be trustees of the fund and take on regulatory compliance responsibilities. Due to this, many people who establish a SMSF enlist administrative services and seek expert advice. By contrast, a public offer fund has no member limit and, as its name suggests, can be joined by members of the public. There is usually one trustee who looks after all of the compliance and regulatory requirements.
Investment strategy
As a SMSF is self-managed, the investment strategy will be chosen to suit members’ retirement objectives. You should be mindful of the risks associated with any investments you make. Typically, there is less investment flexibility with a public offer fund, although choosing from a wide range of opportunities can usually influence your fund’s strategy, unlike a typical retail super fund where you have no choice over investments.
Associated costs
A SMSF typically suits those with a larger fund balance due to the costs involved, especially if using legal or administrative providers. While members of a public offer fund can typically set up an account for free, but will then need to pay ongoing maintenance fees determined on a fund-by-fund basis.
Regulators
SMSF’s are regulated by the ATO, whereas public offer funds are subject to the Australian Prudential Regulator Authority (APRA). Unless administrative services are hired, SMSF’s require a much more hands-on approach as an auditor must be appointed, whereas public offer fund members are unlikely to interact with their regulator.
Fraud or theft
If a SMSF is subject to theft or fraudulent activity, its members are not able to receive any financial assistance from the government, whereas public offer fund members may be eligible for support. This is an important consideration when choosing the members of your fund and setting up your insurances.
If you would like to talk through the details of either a SMSF or a public offer fund, please don’t hesitate to get in touch and we will introduce you to some specialists.
As always, any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors.
If you are unsure, or have questions about your existing policies, please feel free to contact us on 1800 674 435 or by completing our online form HERE
Jarickson’s mission is to help everyday people understand complex insurance advice. We explore the possibilities and help you find the most suitable coverage for you.
By Paul Davies
Traditionally, life’s big milestones were often summed up as getting married, buying a house, having a baby and later settling into retirement.
And while all of these are still momentous and memorable life moments, today there are several other modern milestones to add to that list. These could be launching your own side hustle, investing in a property with a friend, choosing to have a child on your own, or deciding to travel in a campervan.
Aside from all these moments being a cause for celebration, these milestones also mark an important point in your life to reconsider the security you have in place to not only protect yourself and everything you’ve worked towards but also the ones you love.
Considering Life Insurances
Big changes in your life are a time to take stock of the things you’ve achieved, your future goals and what’s important to you. And more often than not, life’s big milestones come with added financial responsibility. For this reason, it’s important to consider how you would continue to meet these responsibilities if something were to happen to you.
Pooling money with family or friends to buy property can be a great way to break into the property market, however, it comes with its own unique considerations. In particular, having a plan for how you will manage and share the financial responsibility which extends to how you would cover both your shares of the mortgage if something were to happen to either of you.
Life Insurance, Critical Illness Insurance and Total and Permanent Disability Insurance (TPD), are all ways to help protect yourself and people that are important to you, helping ensure that if you passed away or could never return to gainful employment, neither your friends or your family would be left to cover the cost of your financial commitment.
Similarly, if you were diagnosed with a Critical Illness or experience a traumatic event that left you totally and permanently disabled, you would have lump sum payment to help offer you financial security and assist with ongoing expenses, or debts.
Considering Income Protection
While big life achievements are generally a result of considerable planning and preparation, you can’t always predict what will happen in life. This means that if you’re considering launching your own venture as your next big milestone, it can be helpful to have protections in place that can help prevent your goals from being railroaded in the event of an illness or accident.
Often, increasing earning power is a motivator to launch a business, so it may be worthwhile considering how you would maintain this financial security if something were to happen to you.
Income Protection can give you an alternative source of income if you’re temporarily unable to work due to an illness or injury that's left you totally or partially disabled. Whether you’ve launched a solo side hustle or are working with a small team, it can help you stay on top of personal living expenses, medical costs and business expenses, leaving you to focus on recovering.
Every Australian is different and has their own unique ambitions, goals and milestones. If you’d like help reviewing your personal financial situation, please reach out.
Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors.
If you are unsure, or have questions about your existing policies, please feel free to contact us on 1800 674 435 or by completing our online form HERE
Jarickson’s mission is to help everyday people understand complex insurance advice. We explore the possibilities and help you find the most suitable coverage for you.