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Are you feeling overwhelmed by the complexities of insurance? Do you know How to Structure Your Insurance? But don’t worry; we’ve got your back! In this step-by-step guide, we’ll break down the process of structuring your insurance to ensure you’re adequately protected in every aspect of life.

 Insurance Structuring Adivce in Australia

1. You should first know what are the different types of insurance available?
Before diving into the nitty-gritty details, it’s essential to understand the different types of insurance available.

Here’s a brief overview of the different types of insurance in Austrlia:

  •  Life Insurance – Payout is completed upon death
  • Total Permanent Disablement (TPD) – Payment on meeting the definition of TPD. Usually through serious illness and unlikely to ever work again.For this type of insurance, you should look at the cover if it is “any” or “own” occupation.
  • Trauma Insurance – Coverage for severe medical events such as heart attacks, strokes etc.
  •  Income Protection Insurance (IP) – Up to 75% coverage of your earnings in the event you fall ill.

2. Understanding Policy Definitions:
Each insurance policy comes with its own set of definitions for claimable events. So take the time to understand what qualifies as a claimable event, such as the definition of a heart attack, to avoid any surprises down the road.

3. What exclusions (if any) apply on any policy?
Be aware of any exclusions that may apply to your policy. This could include pre-existing conditions or specific circumstances that the policy does not cover. Therefore, understanding these exclusions upfront will prevent any misunderstandings later on.

4. Make sure how long is the waiting periods.
Waiting periods is the time in which even if a claim is successfully made do you must wait before the policy starts paying out to you. Waiting periods can vary from policy to policy. Similar to private health insurance, knowing the waiting period is crucial for managing your finances effectively during unexpected events.

How to Structure Your Insurance

5. Assessing Age Impact on Premiums:
Your age can significantly impact your insurance premiums. Generally, the older you are, the higher the risk of a claim, leading to increased premiums. Understanding this impact can help you make informed decisions about when to apply for insurance coverage.

6. Understand what is stepped vs Level premiums.
Stepped premiums may start lower but increase over time, while level premiums remain consistent throughout the policy term. Choose the premium structure that aligns with your financial goals.

Insurance Structuring Guide Australia

 

7. Seekin Professional Advice:
If you’re still unsure about choosing the right insurance for your financial situation, don’t hesitate to seek the guidance of a financial advisor. Their expertise can provide invaluable insights and help tailor a solution that meets your unique needs.

 

This article is for general informational purposes only and does not constitute any investment or financial advice. If you intend to make any investment or financial decisions, please consult your registered financial advisor or accountant, or contact Simon Wu Financial Services. Phone: (02) 9211 0228; Website: www.simonwu.com.au. Simon Wu Financial Services is a member of Premium Wealth Management (AFSL No: 237498).