LIFE COVER INSURANCE

What is Life cover?

Life cover insurance pays out on the death of the insured person. The main reason you would have Life insurance is to protect your family and pay any debts i.e. your home loan, personal loan and also give you some time out in the event of losing your loved ones.

When you are grieving after losing your loved one, the last thing you will feel like doing is going straight back to work, you may feel the need to take some time out or take a holiday or just spend time with the rest of your family or friends.

By ensuring you are insured adequately this will give you time when you need it most.

We at Coast Financial Planning will take a look at your whole life style and see exactly where you are now and where you would like to be if you lose your partner. We will ensure you are protected for any event that may happen and we will give you the right unique advice which best suits you and your family.Life cover is tax free and can be paid through your Superannuation, so you have many options to ensure you and your partner are covered for Life Insurance.

What are the main reasons for death in Australia?

Coronary heart disease is said to be the leading underlying cause of death in Australia, followed by dementia and Alzheimer disease, and cerebrovascular disease (which includes stroke). Lung cancer and chronic obstructive pulmonary disease (COPD) make up the top 5 leading underlying causes of death in Australia in 2014, for males and females of all ages combined.

However Cancer.org states that Cancer is a leading cause of death in Australia – more than 44,000 people died from cancer in 2014. In 2014, cancer was the second most common cause of death in Australia and accounted for about 3 in 10 deaths.

Around 17,500 more people die each year from cancer than 30 years ago, this is due mainly to population growth and ageing.

Don’t leave it until it’s too late, ensure you have the right amount of cover with the right provider. Once you’re gone it’s too late to insure yourself, don’t be a statistic, and make sure you are covered for Life Insurance!

INCOME PROTECTION

Statistics show that one in five of us will have an accident or a long term illness where we are unable to work, which means that if your reading this now it is likely you or a member of your close family will be in this positon at some point in your life.With the above in mind, it is really worth looking at protecting your income in the case of an accident or illness.

It can cost less than a latte or cappuccino a day!Income protection is an excellent tax efficient way of protecting your income.We are all entitled to protect up to 75% of our salary plus super contributions.If you are self-employed, the premiums are 100% Tax deductable.

Premiums can be paid by yourself or by your super fund depending on your personal cash flow.

You can protect your income for the rest of your working career if you wish.
At Coast Financial Planners we have a 100% claim acceptance record with income protection, which means you know you’re receiving the right advice and in good caring hands.
At the point of claim, we know it can be a sensitive time if you have been diagnosed withan illness, so we help you every step of the way to ensure you receive your income quickly and smoothly.

PERMANENT DISABILITY

• Over 4 million people in Australia have some form of disability. That’s 1 in 5 people.
• 18.6% of females and 18.0% of males in Australia have disability.
• The likelihood of living with disability increases with age.
• 2.1 million Australians of working age (15 – 64 years) have disability.

With the above statistics in mind it really is something to be aware of, particularly if you are running your own business or you have a home loan.
We do not want to see you lose your home or your business just because you do not have the right cover for your circumstances.

Disability does not have to ruin your life, you can ensure that your home loan is paid off and that your business can continue to run.

Types of Disability

• 1 in 6 Australians are affected by hearing loss. There are approximately 30,000 Deaf Auslan users with total hearing loss.
• Vision Australia estimates there are currently 357,000 people in Australia who are blind or have low vision. They project that the number of Australians who are blind or have low vision will grow to 564,000 by 2030. (Refractive error not included).
• 45% of the population will experience a mental health condition during their lifetime.
• 3 million Australians live with depression or anxiety.
• Research shows job or financial loss can increase a person’s risk of health problems, such as depression and anxiety.

Heart attack/ cardiovascular disease

Cardiovascular disease, heart disease and heart attack, who is at risk and why?

Risk factors include high blood pressure, high cholesterol, overweight and obesity, physical inactivity, low fruit and vegetable intake, alcohol and smoking.

Nine in 10 adult Australians have at least one risk factor for CVD and one in four (25%) have three or more risk factors.

In 2014/15, 6 million adult Australians (34%) aged 18 years and over had high blood pressure (systolic or diastolic blood pressure is equal to or greater than 140/90 mmHg or taking medication).

In 2011/12, one third of adult Australians aged 18 years and over had measured high cholesterol. This represents 5.6 million adult Australians.

Smoking is the single most important cause of ill health and death in Australia. In 2011/12, one in seven Australians aged 15 years and over smoked daily.

In 2014/15, close to two in every three (63%) adult Australians aged 18 years and over were overweight or obese, with 27.5% obese and 36% overweight.

In 2014/15, more than two in every three (66%) of adult Australians aged over 15 do very little or no exercise at all.

Cardiovascular Disease was the main cause for 480,548 hospitalisations in 2013/14 and played an additional role in another 680,000 hospitalisations

Cardiovascular disease (CVD) is a major cause of death in Australia, with 45,392 deaths attributed to CVD in Australia in 2015. Cardiovascular disease kills one Australian every 12 minutes.

Cardiovascular disease is one of Australia’s largest health problems. Despite improvements over the last few decades, it remains one of the biggest burdens on our economy.

What is Cardiovascular disease:

• • It is heart, stroke and blood vessel diseases
  • kills one Australian every 12 minutes
  • affects one in six Australians or 4.2 million
  • claimed the lives of 45,392 Australians (nearly 30% of all deaths) in 2015 – deaths that are largely preventable

What is Coronary heart disease or heart disease:

• • affects around 1.2 million Australians
  • is the single leading cause of death in Australia
  • claimed the lives of 19,777 Australians (12% of all deaths) in 2015
  • kills one Australian every 27 minutes

What is Heart attack:

• • It is estimated over 400,000 Australians have had a heart attack at some time in their lives.
  • Each year, around 54,000 Australians suffer a heart attack.This equates to one heart attack every 10 minutes.
  • Heart attack claimed 8,443 lives in 2015, or on average, 23 each day.

We are Coast Financial Planning do not want to see anyone suffer with a Trauma illness, however statistics show many of us will do at some point in our lives.

Let us ensure you are fully protected and insured to make sure if you or a family member do suffer with a Trauma illness such as the above, you are covered from every angle.

Trauma in our lives is here to stay, however we can help reduce the risk by not smoking, reducing alcohol intake, taking part in regular exercise and eating a wholefood diet.

TRAUMA

What is Trauma Insurance?

Trauma Insurance is a lump sum paid to you if you are diagnosed with a critical illness, the three main claims are for Cancer, Heart Attack and Stroke.

If you had a heart attack, stroke or were diagnosed with cancer would you be able to pay for all your medical bills?
What would happen if you could not return to work due to the above illness?

Would you be able to survive financially?

If your answer is no or you are not sure then it’s a good time to seek professional advice to ensure that you are covered to pay your medical bills and continue your life as you know it now.

The last thing you want to deal with when suffering a Trauma like Cancer is to deal with expensive medical bills whilst trying to keep your head above water.

Cancer is on the rise in Australia and statistics show that in 2017 over 134,174 new cases of cancer will be diagnosed in Australia (72,169 males and 62,005 females). Compared to in 2013, there were 124,465 new cases of cancer diagnosed in Australia (68,936 males and 55,529 females)

Unfortunately Cancer has touched many families throughout Australia and will continue to in the future. There are things we can do to help reduce the risk of cancer such as not smoking cigarettes, avoiding stress, including exercise in our daily routine and eating a healthy balanced diet.

The last thing you want to deal with when suffering a Trauma like Cancer is to deal with expensive medical bills whilst trying to keep your head above water.

Trauma cover, protects you in these awful circumstances by paying you a lump sum amount to help you pay those high medical bills and help you to maybe pay off your home loan so you don’t have the extra worries and concerns. Estimated most common Cancers to be diagnosed in Australia in 2017 are:

• Breast cancer 17,730
• Breast cancer (among females) 17,586
• Colorectal (bowel) 16,682
• Prostate (among males) 16,665
• Melanoma 13,941
• Lung 12,434

We don’t want to see anyone be a statistic and suffer with a Trauma illness and we certainly do not want to see people struggle financially when they do. We at Coast Financial Planning will ensure you are covered for any Trauma illness and will also help you at the point of claim. We have a 100% claim record and know what it feels like to be touched by cancer. Our advice is not to leave it until it’s too late as so many people do!

KEYMAN INSURANCE

Do you run your own business or do you have key employees working for you?

What would happen if your key employee were to be taken seriously ill or even die, would your business continue without them?

If any of the above relates to you, then it is worth taking a look at Keyman Insurance. Keyman Insurance protects your business if you have a key person in your business who contributes greatly to the cash flow or has a great skill set purposely employed for that skill for your business and that person stops working for you.

KEYMAN INSURANCE IS A BUSINESS SUCCESSION PLAN WHERE BY THE POLICY PAYS OUT WHEN A KEYMAN OF THE BUSINESS DIES, BECOMES TOTALLY DISABLED OR SUFFERS A CRITICAL ILLNESS AND IS NO LONGER ABLE TO WORK FOR YOUR BUSINESS.

A keyman of your business generally either creates a revenue for your business or has given a loan for the benefit of your business.

A good example of a Keyman as follows:

• Dentist surgery employing a specialist dentist that only he/she can do the job.
• An Engineers employing a specialised Engineer that only he/she can do the job role

If the purpose of a Key man Insurance policy is to cover the revenue generated by that keyperson, then the premiums will be 100% Tax deductable. This means you can claim back tax on your premiums each year.

The amount of cover required for the Key man is generally linked to the amount of revenue your key person generates for the business. For Example if your key person generates $500,000 a year for your business, then the cover for that key person will be $500,000. This allows your business a full year’s income to replace or train another key man for your business.

At Coast Financial planning here on the Gold Coast and up in Hervey Bay we ensure you receive the right advice for your circumstances. If you have a key Man in your company ensure he is covered to ensure your business is safe against all odds.

PARTNERSHIP PROTECTION

Are you in partnership in business? If so have you ever considered how your business would continue if you all were not involved?

If you have a business with one or more partners and one of them were to pass away or become permanently disabled, partnership protection and Buy/Sell Agreements would ensure that the surviving partners could buy him or her out and ensure their family …and yours … is well looked after and the business continues.

Partnership Protection is another form of Business Succession, only this time protecting the individual partners within the Business.

So if any of the partners die, become disabled or are diagnosed with having a critical condition, the surviving partners will be paid out with an insurance and these funds can be sued to re train a new partner and also to buy out the deceased partner’s share of the business from their estate.

This way the deceased partners estate will receive the liquid value of the share of the Business share of assets and the surviving partners will retain 100% of the business without un welcome partners interfering in your business.

At Coast financial planning on the Gold Coast and in Hervey Bay we have seen to many times business’s folding due to not been able to buy out a deceased partners share or indeed new partners been involved that may have different work ethics. We will give you a clear idea of how to go about this and how to protect you and your business partners.

Details of the Partnership Protection are usually put down in the partners individual wills and usually have first refusal on the purchase of the deceased share of the business.

As the partners own the individual insurance policies on each other and the business do not own them, the premiums for the insurances are paid by the partners, not the business and therefore are not tax deductable.

Coast financial planning on the Gold Coast and in Hervey Bay will sit down with you and your partners and see if this is the way for your business to be insured. We ensure you receive best advice at all times and offer a continued after service. This means we will review your circumstances each and every year to ensure you are on the right tracks not just now but in the future also. As and when your business changes we will be along your side to offer the continued right financial advice.

EMPLOYER SUPERANNUATION

Employer Super is the superannuation typically offered by small to medium sized companies. They are used as a “default Fund” if the employee does not choose their own superannuation.

As an employer the super guarantee (SG) must be paid on all employees who earn above $450 per month before tax. The super guarantee (SG) is currently at 9.5% of your ordinary time earnings.

As an employer you must pay the SG at least four times a year by the quarterly due dates.

We at Coast Financial Planning on the Gold Coast and Hervey bay can help you ensure your superannuation payments are all up to date each year, we will also do a review to ensure your Employer super is the right superannuation fund for your future needs.

PERSONAL SUPERANNUATION

Personal Superannuation Funds are Superannuation’s set up by the individual and take them wherever they work. These tend to offer access to Direct Shares and have greater flexibility to Insurance Providers and their premium payments. Examples of these are MLC Masterkey Super, Colonial First State Superannuation, AXA North Personal Superannuation and many more.

You can boost your super by adding your own contributions to your super fund or into your spouse’s super fund. This is beneficial if your partner has taken time out of work to bring up a family and you would like to boost their super when they return to work.

Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your take-home pay).

These contributions:are in addition to any compulsory super contributions your employer makes on your behalf. They do not include super contributions made through a salary-sacrifice arrangement.

Personal contributions are non-concessional (after-tax) contributions and will count towards your non-concessional contributions cap unless you have claimed a tax deduction for them.

If you would like to retire earlier than the current age of 67 then it’s a good idea to look at personal Superannuation funds so you have more control of your funds and also you can personally boost your fund each year if needed.

At Coast financial planning here on the Gold Coast and Hervey Bay we will undertake a complete review of your current Superannuation funds and reveal to you any changes that are necessary, particularly if you are thinking of retiring earlier than the age of 67 it is a good idea to get your funds working for you the best way you can.

Industry Super

What is Industry Super you may be asking?

Industry Super are the default super funds for most Industries from the Building Trade to Nursing to Clerical and Administration. Q Super, Hesta and SunSuper are just a few of the options available. From July 2005, as an Australian employee (with some exceptions) you are able to choose the fund into which your employers pay your superannuation in to. In turn industry super funds were no longer industry specific, which means you have more choice where your money goes.
Despite choice of fund being an option for most Australian workers, most workers (over 75%) stick with the default fund their employer chooses.

We at Coast Financial Planning on the Gold Coast and In Hervey Bay will do a complete review of your current Superannuation fund and provide you with the best advice that suits your needs. You may be in the best superannuation for your needs already and if so we will recommend you to continue as you are. It’s always worth having a professional second opinion on your superannuation as this can effect when and how much you will have in your fund at retirement.

BUSINESS SUCCESSION.

Business Succession is an integral part of maintaining your business if the unexpected happens to either you, your business partner or key people within your business.

Two examples of Business Succession are:

Keyman Insurance – the ability to protect the key revenue generator within your business so if he/she were to die, become permanently disabled or be diagnosed of having a critical illness and be unable to work within the business again, the company can be paid a lump sum equal to a year’s revenue the keyperson would have generated. This allows the business 12 months to decide what to do next e.g. replace the key person, sell the business etc. etc.

Partnership Protection –

The ability to protect your business partner so if he/she were to die, become totally disabled or be diagnosed of having a critical illness, you would receive a tax free lump sum to be able to buy out your business partner’s share for their estate and therefore you do not receive any new unwanted business partners as does happen from time to time.

At Coast Financial Planning, we help and advice on the best and most tax efficient way of setting up a Business Succession Plan for you and your business, giving you peace of mind knowing that all the hard work in growing your business does not go to waste because of elements outside of your control.

Best Superannuation

• We help you look at all the options that are available to you.
• We at Coast Financial Planning have the means to access up to 500 different superannuation funds throughout Australia.
• This means we can provide you with the best advice that suits your own individual needs.
• We provide you with a monthly and annually report for all your super contributions so you can see at a glance how your funds are going.
• You will receive an annual visit by our friendly advisor to ensure your super is doing the best for you at all times, even if your situation changes, we will be at hand to guide you through this.
• As your life evolves we evolve with you.