28 Jul 2023 Podcast: Q&A – Safeguarding Your Future with Personal Insurance, featuring Phil Thompson

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In this Q&A episode, our hosts Maddie and Evelyn sit down with Phil Thompson, a seasoned financial planner from Melbourne. The Q&A is centered around a topic that’s crucial but often overlooked – personal insurance.

Throughout the discussion, they navigate the four cornerstones of personal insurance: life insurance, income protection insurance, total and permanent disability (TPD) insurance, and trauma insurance. With Phil’s in-depth knowledge, listeners are offered a deep understanding of the purpose and benefits of each type of insurance.

Phil highlights the critical role of sufficient coverage in protecting not just oneself but also loved ones, in terms of financial stability. He also sheds light on key factors one should consider when selecting personal insurance, such as age, health, occupation, dependents, and long-term financial goals.

This episode serves as a rich resource for anyone seeking to make well-informed decisions about their personal insurance requirements.

Inspired to reevaluate your personal insurance needs? Connect with Phil Thompson and his dedicated team at Skye Financial Services.

Website: https://www.skye.com.au/

Instagram: https://www.instagram.com/skye.wealth/

Email: phil@skye.com.au

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You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at
https://www.everlend.com.au/

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You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at ​​https://www.everlend.com.au/

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Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au

You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.

It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.

If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.

Podcast produced with Apiro


Please find a Podcast summary below with the interview highlights:

Acknowledgement of Country

The episode begins with a respectful acknowledgment of the traditional owners of the land.

Key Topics Covered

1. Truthfulness in Insurance Applications

  • Honesty is Critical:
    • Lying on your insurance application (e.g., claiming not to smoke) can have severe consequences:
      • Within the first three years, insurers can void the policy if they discover a lie.
      • At claim time, insurers may adjust the payout to reflect what you would have been entitled to had you been truthful, often resulting in reduced benefits.
    • Being truthful avoids complications and ensures proper coverage.
    • Smokers who quit can remove the additional premium after 12 months.

2. Paying Insurance Through Superannuation

  • Advantages:
    • Paying for life insurance and Total Permanent Disability (TPD) cover via super can be tax-effective.
    • Super contributions to cover premiums can offset costs, making it more affordable.
    • Offers flexibility to pause contributions during financially challenging periods (e.g., saving for a home deposit).
  • Disadvantages:
    • If left unchecked, premiums can erode retirement savings.
    • Low super balances (<$6,000) may restrict holding insurance due to legislation.

3. Tax Deductibility of Premiums

  • Income Protection:
    • Premiums paid outside of super are tax-deductible.
    • Insurers provide annual statements for tax purposes.

4. Insurance for Young Adults or Those with Low Super Balances

  • Options:
    • Super funds with balances below $6,000 may not offer insurance due to “Protecting Your Super” legislation.
    • For balances above $6,000, premiums can be tailored to fit budget and needs.

5. Insurance for People with Chronic Illness

  • Challenges:
    • Policies may exclude pre-existing conditions.
    • “Accident-only” policies are available for those deemed uninsurable, covering injuries but not illnesses.

6. Making a Claim

  • Process:
    • Contact your super fund or financial advisor for assistance.
    • Advisors can guide you through the claims process, from documentation to liaising with insurers.
  • Surprising Claimable Events:
    • Mental health conditions (e.g., anxiety, depression) may be claimable, provided they are not excluded in the policy.
    • Always check with your advisor or insurer for potential claims.

7. Choosing the Right Advisor

  • What to Look For:
    • Advisors should prioritise understanding your health and financial history over quoting premiums.
    • Seek an advisor who ensures policies offer favourable terms (e.g., avoiding unnecessary exclusions like mental health).

8. The Timeline for Getting Insurance

  • Lengthy Process:
    • Initial research can take weeks, especially if medical history reviews or GP reports are required.
    • Applications may take 1–5 months depending on complexity and insurer response times.
  • Advice for Home Buyers:
    • Insurance can be addressed before or after purchasing a home, depending on personal capacity and stress levels.
    • Completing the home-buying process first can help reduce mental load.

Final Thoughts

The episode provides practical advice on navigating insurance policies, from application tips to claim processes. Evelyn and Maddie encourage listeners to prioritise honesty, seek professional advice, and tailor strategies to their financial and mental well-being.

For further details, listeners are invited to revisit Phil’s earlier episode for a more in-depth discussion.

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