Smart Search Finance has relaunched its new life insurance website. Easier to navigate and information and quotes on the the following insurances;

Mortgage Protection Insurance: insurance to protect your family home

Life Insurance: proteccion for your family and assets

Income Protection Insurance: protect you assets in the event you cannot work

Here you will find further information on these topics plus links to receive insurance quotes fro licensed qualified advisers.

Your mortgage is almost finalised and you’re busy wondering how you will make ends meet on all the numbers that make up the repayments, Right?  But here is a few more numbers you really need to think about -

Did you know that for every

• ONE home lost through fire there are              
• FOUR  homes lost through death; and
• FORTY-EIGHT  are foreclosed and lost through disability

 If only they had set up a simple insurance plan to save the day!

You’re thinking ‘how can I afford this extra expense?’

Our Answer:-  TAX DEDUCTIBLE Income Protection Insurance.

Chances are you have some insurance through your superannuation that offers cheap cover and you think  this will have it covered -but do you?

But consider these cases: -

1.   Single mother Jenny aged 48 years had 2 children aged 18 and 21, both still live at home and both work.  When Jenny died from a heart attack, her children were beneficiaries to her estate that included the family home which has a mortgage of $350,000 and her superannuation of $50,000.  The super fund also contained life insurance benefits of $300,000 which they thought they’d use to pay out the mortgage, but the children had to pay tax of approximately $105,000 when they received the super and insurance benefits, so had insufficient funds to pay out the debt on the mortgage.  They had to sell the house to pay off the debt and were left with insufficient funds to purchase a new residence. 

If Jenny had arranged her insurance outside of superannuation, the children would have paid no tax on the proceeds and could have retained the family home.

2.  Michael is 36 with a wife and two small children.  Michael is diagnosed with Multiple Sclerosis and is unable to work again as an IT executive.  He believes he is financially secure because he can make a claim on his Income Protection and TPD arranged through superannuation with an ‘own occupation’ definition.  However, he is surprised to learn the lump sum claim is delayed because the SIS regulations require that payment can only be made if Michael is unable to return to ‘any occupation’  rather than the ‘own occupation’ he thought that would apply.    Although he is able to receive the income replacement payment for two years, it provides insufficient income to meet the added costs of medical and home modifications required and he struggles to repay the mortgage and school fees he’s afforded whilst he was working.  Eventually the children must move to a state school and the family must also consider moving house. 

When Michael’s condition deteriorated enough to finally qualify for the ‘any occupation’ definition and receive the TPD benefit within his super,  he is devastated to learn he must pay lump sum tax on the proceeds.  He is equally disturbed to learn the tax would not have been payable had his insurance been arranged outside of superannuation in his own policy.

The moral to this story is that cheaper insurance might seem attractive while you’re paying the premium, but the outcome can be financially devastating if you haven’t taken all the relevant factors into account.

If insurance is required is unaffordable for the level of cover required, a superannuation fund can be a cost effective way to arrange the cover needed.  Arranging some cover will almost always be better than not having any cover at all.  However, it is usually the best policy to have your own portable cover that will have minimal tax implications when you go to claim.  If you are arranging insurance through super to meet expenses and debt repayments for family upon your death or disablement, you may need to increase the sum insured on insurance arranged to allow for the tax your beneficiaries will need to pay.                   

Written by

Leigh Riley M Bus FP, DFP Authorised Rep. No. 238 388

Director of JLR Partners – Accounting & Financial Planning

General Advice Warning: Important information

This publication has been prepared as general information only.  It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information, as I did not take into account the objectives, financial situation or particular needs of any particular person.  Before making a succession planning decision, you need to consider (with or without the assistance of an advisor) whether this information is appropriate to your needs, objectives and circumstances.  This Report has been prepared based on my understanding of the taxation laws current as at 18June 2007 and the continuance of those laws and their interpretation.

If you think that it won’t happen to you, consider these damming insurance statistics

If you feeel you need to look at your personal insurance options contact us.

Top Tips For Buying Income Protection
By Jacqui Chase

One of the most important types of insurance that a person should have is income protection. Any person whose standard of living depends on them earning an income should protect this most important asset – their ability to produce an income.

When purchasing an income protection policy there are a number of key points that a purchaser should keep in mind:
- Is the contract a cancellable or a non-cancellable contract?
- Guaranteed or indemnity contract?
- What is the maximum % of income that a person can insure?
- What is a waiting period and how does it work?
- What is the benefit period and how does it operate?
- Indexation – Yes or No!
- Are stepped premiums more suitable than level premiums?
- Will I be covered if I am retrenched or become unemployed?

Non cancellable or cancellable contracts. One of the key features when purchasing an income protection policy is to ensure that the policy is a non cancellable contract -i.e. once accepted by the insurer the policy is automatically renewable irrespective of your claims history. With a cancellable policy however the insurer reserves the right to cancel the contract prior to renewal. This may occur in the event of an individual’s claim history or the potential claims from a group or particular occupation that the particular insurer now deems to be an unacceptable risk.

Guaranteed or Indemnity contract. With a guaranteed contract the sum insured (monthly benefit) is underwritten up front based on supporting financial evidence – e.g. payslips, and other forms such as your tax return. Once accepted by the insurer the monthly benefit is guaranteed to be paid at claim time. With an indemnity contract however the benefit paid is based on the individuals earnings at claim time – this can be a problem if that person has suffered an illness but continued to work albeit in a reduced capacity hence lower earnings.

Maximum cover available. In Australia the maximum benefit 75% with some insurers allowing an additional 9% (for superannuation/retirement contributions).

Waiting Period is the length of time you need to be off work before you can claim any benefit. The shortest period is 14 days, with the standard being 30 days and the longest waiting period 2 years. Usually a person would link this to the level of accumulated sick leave that they have. As a general rule the shorter the waiting period the higher the premium.

Benefit period defines the maximum length that you will be paid for. Better quality polices have benefit periods up to age 60 or 65.

Indexation of Benefits. If you take a long term contract with a benefit period of more than 2 years you would be well advised to ensure that the benefits were indexed each year. This way the real purchasing power of your benefit is preserved.

Level or Stepped premiums. If you have a long term need which is generally over 15 years, you would be best advised to take out a level premium contract where the premium over the long term is averaged out and you pay a consistent premium level. If you only require cover for a short time frame of under 10 years you should take advantage of the initial premium savings found with stepped premiums.

Unemployment/ Retrenchment. Income protection policies are designed to cover loss of income through illness or accident only. Better quality contracts will however suspend cover if you are unemployed or retrenched and allow you to recommence (with limited underwriting).

Top Tips to keep the costs down include using level premiums, possibly splitting benefits to have some level of benefit with a 30 day wait and some with a 90 day wait. By paying annually you may find this is cheaper than paying monthly as many insurers have frequency loadings for monthly payments (up to 7%). If income premiums are tax deductible in your country ensure that you remember to claim your income protection premiums as a deduction – we have seen a number of individuals who have forgotten to do this.

Remember if it is hard to live with an income how hard would it be without one – act today and call your insurance adviser and protect your most valuable asset.

Jacqui Chase is an income protection specialist who helps clients protect their most valuable assets. If you would like to protect your most valuable asset and compare the top 10 income protection [http://www.insurancequotesrus.com.au/online-life-insurance-quotes.html] policies using a real-time tool, go to http://www.insurancequotesrus.com.au.

Article Source: http://EzineArticles.com/?expert=Jacqui_Chase
http://EzineArticles.com/?Top-Tips-For-Buying-Income-Protection&id=3184524

Key Things to Consider When Buying Life Insurance

By Ralph Gray

Taking out a life insurance policy is a big step in life. With this policy, you will become the ultimate provider to your family. Not only will you be able to take care of your last expenses on this Earth, such as any remaining debt and funeral expenses, but you will also be able to provide for your family long after your passing. Taking out a policy often gives one relief and tranquility in life because they know that no matter what may happen, their family will always be provided for. However, to rest assured, you cannot simply take out any type of life insurance. Below you will find some important factors to consider before you buy life insurance:

• Always speak to your family about taking out life insurance. It is a big step in all of your lives, so make sure that everyone is informed and comfortable with the decision, especially with your partner.

• It is suggested that everyone in your family is insured, not just the “bread winner”. You can take out insurance policies on yourself, your partner and children.

• If price is an issue, you may want to look to your super fund. Many times you may already be insured through your super. If you are not happy with this policy, you can always increase it. This will normally be much cheaper than having to take out an unaffiliated insurance policy by yourself.

• Look at your current financial situation and determine how much you will need your insurance policy to cover. If you are unsure about how much you need covered, then you should speak with family members who already hold policies, insurance agents and also with financial consultants to help guide you in the right direction, but ultimately the decision is yours.

• Shop around online to compare the policy costs of different insurers. Make sure you read what they have to offer in their policies including the PDS where you will find a description of the product offered, the benefits, fees and charges as well as any limitations to the specific policy.

• While filling out an application, you must fully disclose all aspects of your life by filling in the application truthfully. If not, then your claim can be rejected because of dishonesty.

• You should find policies that are inflated so that the coverage is equal to that of the cost of living from when you took out the policy.

• Always make sure that you fully read the contract and the agreement, especially to make sure there are no restrictions for certain occupations that may be of a dangerous nature, part time work, age or maternity leave.

If you follow these tips, then you can rest assure that your life insurance policy will help to financially support your family when you are gone.

Medibank Private is Australia’s largest private health insurer and now offers flexible life insurance that can be tailored to your needs

Article Source: http://EzineArticles.com/?expert=Ralph_Gray
http://EzineArticles.com/?Key-Things-to-Consider-When-Buying-Life-Insurance&id=4566478

Welcome to Smart Search Finance Insurance Website!

We aim to provide information on the various types of personal insurance and provide a service where you can receive insurance quotes from qualified advisers.

Personal insurances are designed to protect you, your family and your assets in the even of injury, illness, accident, permanent diablement or death. There are different type of personal insurances that can be taken out individually or in combination.

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