Are you covered?
Personal Insurance is about receiving a sum of money when you or your family are in great need of that money, due to health, injury or death.
Professional expertise can make a HUGE difference when taking out insurance, ensuring you have the best possible cover at the best possible price. Christoph Schnelle is an accredited Life Risk Specialist. We love what we do and provide a caring service for our clients. We assist our friends and clients in finding the optimum policy for their individual situation, look after them while the policy is in force and act as their liaison and support when they make a claim.
Life Insurance is the most common and affordable insurance. It is a great way to take care of your family and dependents.
Life Insurance provides a payout to whomever you choose on your death or on diagnosis of a terminal illness with less than 12 or 24 months to live.
Life Insurance is often combined with TPD, Trauma and or Income Protection Insurance.
How much life insurance do I need?
Usually enough to pay off all your loans and debts plus enough for your partner and children to live on until at least 18 years of age, plus another $50,000-$300,000 to cover the expenses of your final months and death.
Income Protection Insurance
Income Protection is:
the most important policy to protect your future earnings;
almost always tax deductible;
often combined with Life Insurance to protect both your future earnings and take care of your family.
The following Q&A's are covered in our Further Reading page:
Income Protection Questions & Answers:
Are there ways to reduce the costs?
What if my wages go up or down?
What other options should I consider?
What is the Benefit Period ?
What does Waiting Period mean?
How much Income Protection do I need?
You can receive up to 75% of your income paid monthly up to the age of 70.
Most people like to insure for the maximum amount because that is 25% less than they are currently earning.
Trauma Insurance / Critical Illness Cover
Trauma Insurance pays out a lump sum on diagnosis of a major illness or other specified medical condition, regardless of whether you continue working or not.
Over 20% of women and 25% of men would qualify for a trauma payout before age 65.
Trauma has the highest premiums because it has by far the most claims. It is usually taken out in combination with one or more of the other policies.
The purpose of trauma insurance is to help you to afford medical treatment and to cover your extra costs during this difficult time.
Trauma Insurance is different from health insurance because you get paid the entire amount covered on diagnosis, which is very valuable.
Many people get diagnosed early in the course of cancer and may feel perfectly healthy but still get paid. Others may have a minimum qualifying heart attack (the definition of ‘minimum’ differs between insurers) and go back to work after a few weeks but still get a full payout.
Unlike health insurance the payout is not connected to your health expenses.
Finding the right combination of cover is a balancing act that we assist you with.
How much Trauma Insurance do I need? Typically people insure themselves for 1 – 3 years of their gross earnings.
TPD insurance is a cheaper option if trauma is too expensive because a payout is less common. Roughly speaking there are two TPD payouts for one life payout but four or more trauma payouts for each life insurance payout.
Income Protection is a good option for covering your salary. Christoph can discuss the optimal combination with you for your personal situation.
Total and Permanent Disability (TPD)
TPD pays out a lump sum if you become totally and permanently disabled.
Depending on the type and cost of the TPD policy you will get the lump sum if you either:
a) cannot work in your “Own” profession or
b) if you cannot work in “Any” profession or
c) only if you need permanent care.
TPD is a good alternative if Income Protection insurance is not suitable.
What is the difference between ‘own definition’ and ‘any definition’?
You can choose to be covered for “Any” occupation if you would like to be paid if you are unable to ever again work in any occupation. Most people with a TPD policy have this version.
The “Own” option provides much better cover so the premium is more expensive than for the “Any” option. For example if you are able to earn 25% or more of your pre-disability income you may receive a payout under Own but not under Any. The own option is not available for many manual professions.
How much TPD do I need?
The cover is designed to help you to adjust to a big change in your ability to earn an income. There are few hard and fast rules for TPD – it depends on whether you have Income Protection and or Trauma Insurance. For people under 45 an amount that pays off all debts plus enough to live (modestly or well) on for the rest of your life is sufficient.
Business Expenses Insurance
Business owners can insure up to 100% of their normal day-to-day business running expenses for up to 12 months.
It does not matter if your business continues to earn an income while you are unable to work or not – the expenses are covered.
Business expenses include such things as rent, business loan repayments, salaries and wages, rates, electricity, telephone, sometimes cost of locum to cover your role and other such essential out-goings.
It is a good idea where possible to have an ‘agreed value’ policy to cover your expenses so there is clarity about what will and will not be paid. This is something we would discuss with you.
Business Expenses insurance is a lot cheaper than Income Protection insurance because it is only for 12 months whilst income protection can be up to age 65 or 70.Many people choose to have a short waiting period with their Business Expense insurance and a slightly longer waiting period with their Income Protection insurance.Both Income Protection and Business Expenses insurance are tax deductible and usually taken out together for those who have a business.
You can have Life Insurance, Total and Permanent Disability (TPD) and Income Protection through group insurance.
Group insurance for companies and organisations of 15 people or more has a number of large advantages:
It is cheaper than individual insurance.
Automatic acceptance for everybody regardless of medical history, pastimes and smoking status. This is extremely valuable for many people who can’t get insurance without exclusions or loadings.
It is tax deductible, making it even cheaper again for employees.
It provides much more comprehensive cover than worker’s compensation and health insurance.
Personal Insurance consultations with Christoph are free except in very special circumstances.
Financial Advice, quotes and most reviews are also free. Statements of Advice fees for Aged Care and ongoing Financial Planning services are very reasonable and vary depending on individuals' circumstances and requirements. Prior to any charges we will present you with a written quote for your written approval.
If you have any questions or would just like a chat please contact us on 1800 332 225 – we would love to hear from you.