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Home > I'm an Individual > Personal Insurances > Personal insurance FAQs
Personal Insurance FAQs
Can I pay for my Insurances from my Super balance?
Yes you can. The cost is lower by placing your insurances within your Superannuation as you may benefit from the up-front tax concessions within the Superannuation environment. By placing your insurances in Superannuation, you can pay for insurance without reducing your disposable income. Thereby directing any extra cashflow savings to where you need it most. Death, Total / Permanent Disability and Income Protection insurances can be structured in Super and paid from your Super balance. The premiums are deductible to the Superannuation Fund for tax purposes.
Life Insurance is too expensive – I’m not sure I can afford it ?
You and your family’s well-being is the biggest priority there is. The average life insurance premium costs less than most car insurance premiums and you’re worth more than your car, right? Right! By organising a policy specifically tailored to your needs we’ll make sure you are covered for what you need with no unwanted extras.
My premiums seem to go up each year. What can I do to avoid this?
You’re most likely talking about ‘stepped’ premiums, which many of our clients choose for their Insurance cover. These are essentially age-based insurances which increase annually until such time the cost outweighs the benefits for most. However, if you select ‘level’ premiums, you are able to lock-in the cost for the age you were when you purchase your cover. Although this option can cost a little more at your entry point, you can often achieve sizeable savings for the duration of your cover.
I've heard that Life Insurance companies don’t pay out on claims – is this true?
Contrary to popular belief, insurance companies look to pay all genuine claims as quickly as possible. The conditions for meeting claims are clearly set out in the policy. It’s part of our job to ensure you understand completely what you’re covered for and what you’re not – in other words that your policy has no ‘hidden catches’.
It just sounds too complicated and confusing. I need it to be easy.
Your life is the most important and possibly most variable thing you can insure. Unlike car insurance, every single person is different. And that’s why you will get the best outcome from having a brief discussion with our insurance advisor about what your requirements are both now and into the future.
Once your requirements are assessed, you will have all the options explained and we will help you find the most appropriate policy to achieve peace of mind for you and your family. The PrimeProtect process has been put in place to give you complete confidence that you have the right level of insurance cover whatever your life stage and circumstances.
If I make a claim will my premiums go up?
Unlike motor and home insurance with no claim bonuses, insurance policies for life/disability are both guaranteed renewable and non-cancellable. This obligates the insurer to continue coverage as long as you’ve paid your premiums. Your premiums will not go up as a result of a personal claim. The insurer does, however, reserve the right to raise the rates across an entire class of insured people.
If I make a claim will I lose my cover?
Insurance policies are both guaranteed renewable and non-cancellable. This obligates the insurer to continue coverage as long as premiums are paid on the policy and the policy has been structured appropriately. If you include buy-back and/or re-instatement options on policies, it will allow you to double dip should this be required.
Why do I need both Trauma and Income Protection ?
Income Protection Insurance provides you with up to a maximum of 75% of your earnings, enabling you to meet your ongoing living costs like: mortgage, food and car expenses. However, if you’re unable to work due to a serious illness, you’re likely to be hit with additional medical and rehabilitation costs. Potentially you’d need even more than your normal earnings to stay afloat until you get back on track. Trauma Insurance will provide you with a lump sum payment, to fill the gap and pay for any additional surprises. Think of it as maintaining the cashflow for a business.
Why can’t I pay for my Trauma cover from my Super?
If your Trauma Insurance was structured in Super, the payment made upon claim would become trapped as preserved benefits in your Super and you wouldn’t be able to touch it until you reach retirement age. You’re likely to find this approach counter-productive as the point of trauma cover is to cover immediate costs and assist your cashflow.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.
Can I pay for my Insurances from my Super balance?
Yes you can. The cost is lower by placing your insurances within your Superannuation as you may benefit from the up-front tax concessions within the Superannuation environment. By placing your insurances in Superannuation, you can pay for insurance without reducing your disposable income. Thereby directing any extra cashflow savings to where you need it most. Death, Total / Permanent Disability and Income Protection insurances can be structured in Super and paid from your Super balance. The premiums are deductible to the Superannuation Fund for tax purposes.
Life Insurance is too expensive – I’m not sure I can afford it ?
You and your family’s well-being is the biggest priority there is. The average life insurance premium costs less than most car insurance premiums and you’re worth more than your car, right? Right! By organising a policy specifically tailored to your needs we’ll make sure you are covered for what you need with no unwanted extras.
My premiums seem to go up each year. What can I do to avoid this?
You’re most likely talking about ‘stepped’ premiums, which many of our clients choose for their Insurance cover. These are essentially age-based insurances which increase annually until such time the cost outweighs the benefits for most. However, if you select ‘level’ premiums, you are able to lock-in the cost for the age you were when you purchase your cover. Although this option can cost a little more at your entry point, you can often achieve sizeable savings for the duration of your cover.
I've heard that Life Insurance companies don’t pay out on claims – is this true?
Contrary to popular belief, insurance companies look to pay all genuine claims as quickly as possible. The conditions for meeting claims are clearly set out in the policy. It’s part of our job to ensure you understand completely what you’re covered for and what you’re not – in other words that your policy has no ‘hidden catches’.
It just sounds too complicated and confusing. I need it to be easy.
Your life is the most important and possibly most variable thing you can insure. Unlike car insurance, every single person is different. And that’s why you will get the best outcome from having a brief discussion with our insurance advisor about what your requirements are both now and into the future.
Once your requirements are assessed, you will have all the options explained and we will help you find the most appropriate policy to achieve peace of mind for you and your family. The PrimeProtect process has been put in place to give you complete confidence that you have the right level of insurance cover whatever your life stage and circumstances.
If I make a claim will my premiums go up?
Unlike motor and home insurance with no claim bonuses, insurance policies for life/disability are both guaranteed renewable and non-cancellable. This obligates the insurer to continue coverage as long as you’ve paid your premiums. Your premiums will not go up as a result of a personal claim. The insurer does, however, reserve the right to raise the rates across an entire class of insured people.
If I make a claim will I lose my cover?
Insurance policies are both guaranteed renewable and non-cancellable. This obligates the insurer to continue coverage as long as premiums are paid on the policy and the policy has been structured appropriately. If you include buy-back and/or re-instatement options on policies, it will allow you to double dip should this be required.
Why do I need both Trauma and Income Protection ?
Income Protection Insurance provides you with up to a maximum of 75% of your earnings, enabling you to meet your ongoing living costs like: mortgage, food and car expenses. However, if you’re unable to work due to a serious illness, you’re likely to be hit with additional medical and rehabilitation costs. Potentially you’d need even more than your normal earnings to stay afloat until you get back on track. Trauma Insurance will provide you with a lump sum payment, to fill the gap and pay for any additional surprises. Think of it as maintaining the cashflow for a business.
Why can’t I pay for my Trauma cover from my Super?
If your Trauma Insurance was structured in Super, the payment made upon claim would become trapped as preserved benefits in your Super and you wouldn’t be able to touch it until you reach retirement age. You’re likely to find this approach counter-productive as the point of trauma cover is to cover immediate costs and assist your cashflow.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.
| PrimeWealth Pty Ltd is a Corporate Authorised Representative and Corporate Credit Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687 ACL 240687 275 Kent Street, Sydney NSW 2000 |
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