Insurance Articles
85% of bushfire dead had no life cover, says insurer
Posted by admin - 31/03/09 at 10:03:24 amA lack of life insurance among the 210 victims of Victoria’s Black Saturday bushfires is even worse than the estimated 30% who had no property insurance. Just 30 of the victims – 15% – had life cover.
This estimate, based on “reasonable estimates”, has been provided by an insurer’s GM Product Management Clive Levinthal.
He told insuranceNEWS.com.au that based on claims received and the insurer’s market share, the figure translates to a payout of $5 million to beneficiaries.
“Underinsurance is a major issue and, despite good efforts by the industry, it’s not getting any better,” he said. “It does need some kind of government intervention or support to take the next step.”
Mr Levinthal says an Investment and Financial Services Association (IFSA) campaign to be launched in May will play an important part in communicating the problem of underinsurance to the public, government and other stakeholders.
Other insurers have also reported a low rate of bushfire-related life claims six weeks after the event.
An Insurance company spokesman Tim Cobb says the company has not received any bushfire-related claims yet, but some people have been given replacement policy documents and some have requested relief on premiums.
There is speculation that a number of claims will be paid through life cover attached to superannuation policies which offer a comparatively low payout.
Source: www.insurancenews.com.au 30 March 2009
Insurance Articles
Fire alarm warnings as daylight savings ends
Posted by admin - 30/03/09 at 10:03:29 amONE-in-five people take down their smoke detector or remove the battery when cooking sets it off, according to research.
It means people may be putting their lives at risk over the frustration of burnt toast.
In one-third of cases, the alarm is not replaced immediately and some are not replaced at all.
The habit, revealed in the Duracell National Fire Safety Report, could have disastrous consequences.
Metropolitan Fire Brigade (MFB) community education executive manager Rob Taylor said 30 per cent of house fires firefighters attended did not have working smoke alarms.
“Having a working smoke alarm halves your chance of having a fire death or serious fire in the home,” he said.
“It’s exactly the same as seatbelts. A seatbelt doesn’t prevent an accident, but it greatly enhances your survivability of an accident.”
As Victoria, NSW, South Australian, Tasmania and the ACT prepare to wind their clocks back next weekend, fire authorities are reminding households to change their smoke alarm batteries.
The fire safety report found about 800,000 Australians never replaced their batteries.
Last year there were more than 13,000 house fires across Australia.
Mr Taylor said non-functioning fire alarms were a huge concern, in some cases preventing the early warnings crucial to saving lives and property.
He urged all households to adhere to the “change your clock, change your smoke alarm battery” mantra next weekend and assist the elderly and disabled do so.
People could prevent false alarms by avoiding putting smoke detectors in kitchen and bathroom areas.
Otherwise photo-electric smoke alarms, which are less likely to be triggered by cooking fumes, could be used, he said.
People are urged to only purchase Australian-standard smoke alarms and to test them monthly.
Smoke alarms should be fitted in all bedrooms and hallways between sleeping areas and exits.
They should also be interconnected so that every alarm activates, regardless of the location of a fire.
Source: www.heraldsun.com.au 30 March 2009
Insurance Articles
Headphones a hazard behind wheel
Posted by admin - 27/03/09 at 10:03:00 amYOUNG drivers are risking serious accidents by listening to portable music players through their headphones at the wheel, research has revealed.
The company says research shows one in five drivers under 30 admits to wearing headphones while driving. Police say the practice is dangerous and could result in prosecution if deemed to be the cause of an accident.
The NSW head of police traffic command, Chief Superintendent John Hartley, said wearing headphones while driving was “not illegal, but not advisable”. “If you’re deemed to be not in proper control of your vehicle or not aware of your environment while you’re driving, you could be done for negligent driving if you cause an accident,” he said.
A spokesman for the researcher, John Hallal, said listening to MP3 players through headphones could be as distracting as using a hand-held mobile phone. “It does beg the question why one is illegal and the other is not,” he said.
“Drivers should always be alert to what is happening around them and by using headphones, the driver is likely to be less aware of the surrounding traffic conditions. [Headphones] can totally block out other sounds. You won’t hear a siren, you won’t hear a horn – and that can be dangerous.”
Mr Hallal said MP3 players presented problems even if headphones were not used because drivers could be distracted by scrolling through playlists while they were driving. ‘There’s always the temptation to look down and change songs,” he said.
About half of the under 30s interviewed said they used portable digital music players while driving. Mr Hallal said the players were more distracting than a normal car stereo.
“IPods and MP3 players are different to simply listening to the radio or a CD. With a stereo, you know where the controls are. If you’ve got an iPod in the centre console and it slips off, the temptation is to go looking for it. And it only takes a split second with your eyes off the road for something to happen.”
He added: “We’re not calling for people to stop using their MP3 players. We just believe they should use common sense and sort out their music before they start driving.
“And under no circumstances should headphones be used.”
Car companies are increasingly offering jacks to support the devices in their cars. Some have more integrated systems that allow iPod or MP3 playlists to be displayed on a screen on the car’s dashboard and operated through buttons mounted on the steering wheel.
The marketing manager for Hyundai, Oliver Mann, said integrated systems were safer than auxiliary jacks because they allowed drivers to maintain eye contact with the road ahead.
Source: Sydney Morning Herald March 19, 2009
Insurance Articles
What to do first if a friend or relative has died:
Posted by admin - 26/03/09 at 04:03:13 pmWhat to do first:
Few people die at home in Australia today. So, most of the time the hospital or other authorities are there to take care of the medical necessities and formalities.
When someone dies at home, you should phone the person’s doctor. The doctor will explain what steps to take to get a Death Certificate.
- Death Certificate
- Organising the funeral
- Insurance policies
- Funeral bonds and prepaid plans
- The Will.
Death Certificate
A Death Certificate is the official registration of death. It is signed by the doctor who pronounces the death and must be lodged with the relevant State or Territory Government office. You cannot make funeral arrangements without a signed Death Certificate. In most States and Territories, this office is called the ‘Registrar of Births, Deaths and Marriages’. Your funeral director will usually organise to lodge the Death Certificate for you.
A copy of the Death Certificate for the next of kin is usually arranged by the funeral director – this may take several weeks. In unusual cases, for example if an autopsy or coronial inquiry is conducted, it could take eight weeks or longer to issue the Death Certificate.
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Organising the funeral
A funeral director can arrange the funeral for you. They will arrange for the body to be removed from the place of death, certificates for the burial or cremation service and can arrange for you to view the body if you wish. The funeral director can also arrange other things like newspaper notices, flowers and religious services. If you do not know who to contact, the Funeral Director’s Association in your state or territory can help.
Funeral costs can vary considerably. It is important to know what you’re getting and how much it will cost. Do not be persuaded to spend more than you can afford. The funeral director should provide a quote in writing.
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Insurance policies
1300 Insurance has a smile, easy and affordable low cost solution – funeral insurance from as little a $0.36 cents a day and will cover funeral expenses up to $15,000.
Sometimes private health insurance, sickness and accident insurance or life insurance policies may pay funeral and other payments. For example, a few private health insurance companies contribute amounts up to around $1 500 towards the cost of a funeral. The contribution depends on the level of cover and certain conditions.
Conditions may include:
- your relationship to the person who has died
- the length of time he or she had the cover
- whether a health condition that contributed to the death had existed before joining.
Please Note: If you find out the person who died had any insurance like this, phone the insurance company and ask if there is any payment available.
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Funeral bonds and prepaid plans
If you think there was a prepaid funeral or funeral bonds, but cannot find the relevant papers, the papers may have been left with someone responsible such as next of kin, a solicitor, the Public Trustee, a trusted friend or the executor of the Will. You can also phone the local funeral directors. They usually have their own lists that you can check. Look for the number under ‘Funeral Directors’ in the Yellow Pages.
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The Will
The Will is a legal document that sets out how the deceased’s belongings are to be distributed after their death. It may take into account:
- the likely value of their estate
- special funeral arrangements
- prepaid cemetery plots
- beneficiaries and special gifts
- organ donation
- appointing an executor.
The executor of the Will is responsible for distributing the person’s assets to the people named in the Will as beneficiaries. This happens after any debts are paid.
If the person has not left a Will the estate is shared under a formula set by law. The formula cannot take account of the person’s wishes.
If there are no close relatives, there is a chance the estate could be paid to the State or Territory Government.
The administration of the estate may be more difficult and expensive if there isn’t a Will. The State Trustee, Public Trustee or a solicitor can give you advice on what to do in these circumstances.
Depending on the State or Territory, there may have to be a ‘grant of probate’ if the estate is more than $10 000. This means having a court order that says the Will is the final and valid Will of the person who has died.
Article taken from ATO website 26/3/09
Insurance Articles
Rags to Riches
Posted by admin - 25/03/09 at 04:03:20 pmWe’ve all been guilty of a spending spree from time to time, but what blows your budget on a regular basis? There are tough times ahead and according to Paul Clitheroe, the author of ‘Making Money’, we need to pay close attention to where our money is and be smart about how we spend it.
The keys to success during tough economic times:
* Think about what you want your life to be like.
* Set yourself simple goals.
* Plan to consistently spend less than you earn.
* Put savings into buying and paying off your home.
* Once your home is paid off, put your normal mortgage payment into shares and property.
* Remember that risk equals return.
* Avoid “get rich quick” schemes. ‘
* Plan to minimise tax.
* Plan for retirement early in your life.
* Always remember money is no good if you don’t enjoy it. Money provides choices but shouldn’t overshadow health, family and friends.
Ten steps to financial security
1. Have a plan
Write down your objectives – Should contain your objectives, your budget, your current financial position and any relevant and important facts.
2. Budget and control your money
The truth is, everyone has trouble saving, regardless of their income. When budgeting always consider saving as getting rich slowly.
3. Save little, save often
$1 a day saved between age 18 – 65 will give you about $400, 000.
$2 a day would mean you have $800, 000.
Saving $5 a day means you will have about $2 million.
Simply remember that it is commitment to regular saving that is most important.
4. Don’t take silly risks
Risk equals return so if something offers a higher return there is a higher risk involved. Lotto and a small Melbourne cup wager are okay – just keep in mind that the chance of winning lotto is about seven million to one.
5. Don’t plan to save cash
Generally we can’t save cash or money in a savings account. Arrange for money to be automatically taken out of an account into a savings account.
6. Plan to own your home debt-free
Owning your own home and eliminating the debt against it as quickly as possible is the key to wealth creation.
7. Invest in super
Super involves regular saving, it is tax efficient, it is invested in good long-term assets and you can’t touch it!
8. Minimise tax
Tax should not drive investment decisions. Always try to minimise tax but never let it influence your investment decisions. Do not negatively gear solely for a tax break.
9. Protect your assets
Get insurance to cover your home and contents and care but also to cover yourself – Medical and income protection insurance are important.
10. Seek advice if you need it
If you get professional advice make sure you are aware of the issues and decisions they are making for you. Don’t leave every decision in the hands of a financial advisor.
For further information, go to www.money.ninemsn.com.au.
Source: www.ninemsn.com.au
Insurance Articles
Protecting Your Lifestyle with Income & Life Insurance
Posted by admin - 24/03/09 at 04:03:11 pmOur lifestyle is a very important factor in our everyday existence and at times it is an aspect that some of us take for granted until an incident occurs that compromises how we live. This may be a result of an unforeseeable accident that reduces our financial earning capacity or worse still claims the life of a loved one. While it can be painful to consider the unsavory possibilities it is also smart thinking protecting your future and that of those that you care about most. Life and income protection insurance ensures that you and your family’s quality of life remains the same no matter what the circumstances.
Angela and Paul have just married and bought their first home, as a couple their financial responsibilities have increased considerably and Paul knows that as the main income earner Angela would not be able to meet the mortgage repayments if he was no longer able to work or passed away. Therefore, he is considering both life insurance and income protection insurance, which will give him and his wife peace of mind as well as guaranteeing their continuity of life.
While Angela and Paul’s circumstances is one that warrants income protection and life insurance cover there are many others that are also feasible, these include:
1. A single person wishing to cover their financial obligations.
2. Partners who are not legally married but hold joint assets and liabilities.
3. Partners or married couples with children under the age of 18.
4. Retired couples or individuals.
5. Self-employed contractors or business owners who may be either single or within a relationship.
So how do you work out how much cover you will need?
The easiest way to calculate this is by looking at your circumstances and taking all of your costs into consideration. If you are looking at income protection work out how much you need weekly to pay for your expenses and cost of living. Include car and home repayments, utilities and other bills as well as food and expenses. For example – if you earn $800 a week after tax whilst working it is best to replicate this amount.
In terms of life insurance consider the cost of paying out your mortgage and any other loans that you may have, cover funeral expenses and if you have a family leave them enough to live on for at least 12 to 18 months while they adapt to their new lifestyles.
When looking at life and income protection policies it is important to consider-
1. The cost of the premium and methods of payment?
2. What exactly are the fees and charges?
3. Exactly what your policy covers in terms of illness and death?
4. What are the policy terms and conditions are?
It is important to consider where you are buying your insurance policy. 1300 Insurance offers coverage direct to the public without the intermediary broker or financial adviser. This amounts to cheaper premiums because of the lower costs involved. Be sure to compare the premiums on offer.
Most of the time, life insurance and income protection premiums are calculated according to the risk to the insurer, therefore factors like previous illness, disabilities, family medical history, your age and your occupation play a large role in determining cost, as does whether you smoke and drink alcohol.
Life insurance is typically offered via financial planners and life insurance brokers and choosing the right broker or planner can be difficult, remember that you will need to genuinely like this person because they will need to know your financial background and personal history in order to offer you the best policy.
1300 Insurance has set out to make buying insurance cover as convenient and cost effective as possible. By removing the middle man the 1300 Insurance experience is inviting and non-intrusive, with the added bonus of being very cost effective.
Article extract from Webwombat 24/03/09
Insurance Articles
Top 10 reasons for Travel Insurance
Posted by admin - 23/03/09 at 02:03:27 pmPeter Greenberg is one of America’s most recognised travel experts. He has spent over two decades as Good Morning America’s travel correspondent and more recently the travel editor the NBC’s Today show. This is an extract from Peter’s latest book and could help us all when deciding on travel insurance.
Since I’m an advocate of purchasing travel insurance, people are always coming up to me and asking, “Why?”
Which is why I’ve come up with my list of the top 10 situations in which travel insurance can come in handy.
1. Your flight has been canceled.
2. Your bags are lost and your medication is in them. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You’re involved in an accident, and adequate medical treatment is not available.
5. You need medical evacuation*.
6. You need to cancel your trip due to illness.
7. Your cruise line, airline or tour operator goes bankrupt. You need to have your non-refundable expenses covered and to get to your destination.
8. A terrorist incident occurs in the city where you’re planning to visit, and you want to cancel your trip.
9. A hurricane forces you to evacuate our resort, hotel or cruise ship.
10. And last but not least, it’s simply worth the extra few dollars to ensure your peace of mind. Trust me, it will make the days leading up to your trip and throughout your travels a little less stressful.
*[Ed.- Often requires more specialized medical evacuation insurance]
Source: www.petergreenberg.com
Insurance Articles
Insurance study shows chihuahuas are most destructive
Posted by admin - 20/03/09 at 02:03:16 pmTHEY are so small they risk being crushed under foot, yet chihuahuas are one of the most destructive dogs to keep in your house.
The tiny pets typically cause $1376 worth of damage to homes in their lifetimes, according to a survey.
Only great danes present a greater risk to property and possessions, with an average total repair bill of $1420 – but they can at least blame their size.
Another surprise entry in the top 10 of canine offenders are dachshunds. The sausage dogs typically cause $888 of damage.
The breed that causes the least damage is the Pug.
The Pug is recognised for its ability to learn obedience skills, minimising behavioural problems in the home.
The bulky St Bernard doesn’t appear to have the same problems with its size as the great dane. Its gentle and stable nature puts it in second place among those that cause least damage.
The findings show goodwill between man and his best friend can be stretched to breaking point by clumsy, bored or bad-tempered pets.
The most common form of damage is stained or soiled carpets, scratched doors, chewed door frames and ruined clothes.
Ripped sofas, chewed wires and broken ornaments are also common.
A total of 3000 dog owners were interviewed by a pet insurance company, which found nearly two-thirds had paid to repair or replace items damaged by their animals. Most of the breakages happened when the dogs were puppies.
However, 14 per cent of owners said they had put up with destruction throughout their dog’s life.
Among the horror stories to emerge from the study was a great dane that ran into closed patio doors, knocking them and their frame right out of the wall.
A rottweiler knocked over a $3000 vase and a border collie’s wagging tail hurled a glass of red wine over a $6000 cream carpet.
A labrador pup chewed through three pairs of its owner’s $150 shoes and another dog pulled all the fabric off a sofa, leaving just the wood and springs.
In July researchers at the University of Pennsylvania revealed that small dogs were among the most aggressive, with dachshunds top of the list.
Source: www.heraldsun.com.au September 5 2008
Insurance Articles
Melbourne’s second earth tremor in as many weeks
Posted by admin - 18/03/09 at 05:03:55 pmMelbourne was hit with it’s second earth tremor in as many weeks. It shook Melbourne at approximately 4.30pm AEST on Wednesday 18 March 2009. Geoscience Australia the government department responsible for monitoring seismic activity in Victoria reported that the quake measured 4.6 on the Richter scale.
While the quake was big enough to rattle buildings and windows it was not expected to cause any damage, with exception of perhaps the epicenter – which is yet to be identified.
People have reporting feeling the tremor in the CBD, St Kilda, Port Melbourne, Emerald, Warrandyte and Heathmont.
Melbourne experienced another shock on March 6 which also measured 4.6 on the Richter scale.
It may be a timely reminder for people to contact their insurer to ensure that their Home and Contents Insurance covers them for all eventualities. Greg Read from 1300 Insurance says “its not something people really consider a possibility… although they might have thought that about a bushfire until recently”.
Insurance Articles
Life Insurance
Posted by admin - 18/03/09 at 01:03:14 pmAn extract of an article that appeared in the Sydney Morning Herald earlier this month.
IF YOU fit the description of “married, kids and mortgage”, how much life insurance might you need?
Life insurance places an economic value on the person who has died, says Mark Kachor, the managing director of research firm DEXX&R.
The theory is that it should replace the income the person would have earned, so their dependants are left no worse off than if the person had lived a full life.
That money should pay out all debt – money borrowed on the basis that it could be repaid out of that person’s income – and in a city such as Sydney or Melbourne that might involve a $500,000 mortgage.
Now add the children. Their upkeep might come to $20,000 a year for 10 years – each.
And that’s before optional extras such as private school fees. Then there’s the actual income loss. If the person was earning about $80,000 a year you’d need to earn about 7 per cent a year on a capital sum of $1.1 million to replace that income, Kachor says.
The idea is to keep that capital sum intact, rather than drawing on it, as a guard against inflation and perhaps to replace the retirement savings the person would otherwise have accumulated, he says.
“You end up with $2 million in cover as the economic value of someone 30 to 40, married, with a couple of kids and a mortgage,” Kachor says. “If you’ve got that level of cover, you’re fully insured.”
Source: www.smh.com.au March 4, 2009