1 00:00:00,640 --> 00:00:04,880 Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr 2 00:00:04,920 --> 00:00:08,639 Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before 3 00:00:08,640 --> 00:00:11,119 Speaker 1: we get started on She's on the Money podcast, I 4 00:00:11,160 --> 00:00:14,280 Speaker 1: would like to acknowledge the traditional custodians of the land 5 00:00:14,400 --> 00:00:18,079 Speaker 1: of which this podcast is recorded on a wondery country, 6 00:00:18,120 --> 00:00:22,240 Speaker 1: acknowledging the elders, the ancestors and the next generation coming 7 00:00:22,280 --> 00:00:26,960 Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing 8 00:00:27,040 --> 00:00:30,080 Speaker 1: and the storytelling of you to make a difference for 9 00:00:30,200 --> 00:00:32,599 Speaker 1: today and lasting impact for tomorrow. 10 00:00:33,280 --> 00:00:34,120 Speaker 2: Let's get into it. 11 00:00:34,760 --> 00:00:54,040 Speaker 3: She's on the Money, She's on the Money. 12 00:00:57,680 --> 00:01:00,800 Speaker 4: Hello, and welcome to She's on the Money, the podcast 13 00:01:00,800 --> 00:01:02,800 Speaker 4: for millennials who want financial freedom. 14 00:01:02,920 --> 00:01:05,080 Speaker 2: Oh thanks, g, You're so welcome. 15 00:01:05,840 --> 00:01:09,479 Speaker 4: Questions about insurance, what you need, what's a waste of money, 16 00:01:09,640 --> 00:01:13,080 Speaker 4: and which you should prioritize are among the most common 17 00:01:13,160 --> 00:01:15,360 Speaker 4: questions we receive in the She's on the Money inbox. 18 00:01:15,680 --> 00:01:18,080 Speaker 4: And even though there's plenty of info out there on 19 00:01:18,120 --> 00:01:20,360 Speaker 4: the Internet, we've found that it can all just be 20 00:01:20,600 --> 00:01:23,119 Speaker 4: a little bit too much to wagh through on your own. 21 00:01:23,680 --> 00:01:27,120 Speaker 4: That's why today we're dedicating an entire episode to Insurance, 22 00:01:27,400 --> 00:01:30,759 Speaker 4: helping you to answer your burning questions about pretty much 23 00:01:30,920 --> 00:01:34,520 Speaker 4: every type of insurance under the sun. My name is 24 00:01:34,560 --> 00:01:36,880 Speaker 4: Georgia King, and joining me as she does each and 25 00:01:36,959 --> 00:01:40,800 Speaker 4: every week, is financial Advisor, Miss Victoria Divine V. 26 00:01:40,959 --> 00:01:42,760 Speaker 2: How are we hi? Well? How are you? 27 00:01:42,959 --> 00:01:43,160 Speaker 1: Yeah? 28 00:01:43,280 --> 00:01:43,760 Speaker 2: Good girl? 29 00:01:43,800 --> 00:01:46,720 Speaker 4: Good to see you. Am I right in thinking? V? 30 00:01:46,959 --> 00:01:48,640 Speaker 4: I don't know why I'm pretending here. I'm doing a 31 00:01:48,680 --> 00:01:50,960 Speaker 4: bit of acting. But all of the questions from today 32 00:01:51,480 --> 00:01:52,880 Speaker 4: are pulled from the community. 33 00:01:52,880 --> 00:01:54,960 Speaker 2: Is that correct? Yeah, So we did a little Q 34 00:01:55,080 --> 00:01:57,440 Speaker 2: and A on the Instagram story and said what do 35 00:01:57,520 --> 00:01:59,360 Speaker 2: you want to know about insurance? We're going to do 36 00:01:59,400 --> 00:02:01,720 Speaker 2: a Q and A. So this could be wild because 37 00:02:01,840 --> 00:02:04,720 Speaker 2: I didn't pick these questions. You did, and I mean, 38 00:02:04,840 --> 00:02:07,720 Speaker 2: arguably I should have picked them, but you wanted to 39 00:02:07,760 --> 00:02:08,160 Speaker 2: have a turn. 40 00:02:08,320 --> 00:02:11,920 Speaker 4: So that's good, exactly right. So the first question for 41 00:02:12,000 --> 00:02:16,880 Speaker 4: today it comes from multiple people, Sarah, yess Lily, Anita, Karl, Matt's, Annie, Jessica, 42 00:02:16,960 --> 00:02:19,640 Speaker 4: and Sophia. They all had the same pers all had 43 00:02:19,680 --> 00:02:23,200 Speaker 4: the same question, and that is what's the deal with 44 00:02:23,320 --> 00:02:26,639 Speaker 4: insurance inside your super All right? This is a very 45 00:02:26,639 --> 00:02:30,040 Speaker 4: good question and arguably a very popular question. Was that 46 00:02:30,120 --> 00:02:32,160 Speaker 4: really the only amount of people that asked this. 47 00:02:32,240 --> 00:02:34,720 Speaker 2: I feel like this would have been a really popular 48 00:02:34,760 --> 00:02:37,960 Speaker 2: one because so many people in our community always say 49 00:02:38,000 --> 00:02:40,000 Speaker 2: things like oh my gosh, no, I don't need income 50 00:02:40,000 --> 00:02:43,000 Speaker 2: protection or I don't need life insurance because it's inside subranuation. 51 00:02:43,480 --> 00:02:48,040 Speaker 2: But essentially, insurance inside subranuation is there to help obviously 52 00:02:48,080 --> 00:02:50,720 Speaker 2: provide for you and your loved ones if something happens 53 00:02:50,760 --> 00:02:52,960 Speaker 2: to you or you can't work anymore because of illness 54 00:02:53,000 --> 00:02:56,320 Speaker 2: or injury, and it's usually offered through a default subranuation 55 00:02:56,440 --> 00:02:59,519 Speaker 2: company or your employe sponsored super plan as cover their 56 00:02:59,560 --> 00:03:02,720 Speaker 2: negotia for you and their other employees, which is called 57 00:03:02,720 --> 00:03:05,679 Speaker 2: group insurance. And this is actually the number one way 58 00:03:05,720 --> 00:03:09,360 Speaker 2: that Australians have access to affordable insurance. And the big 59 00:03:09,400 --> 00:03:13,440 Speaker 2: part here is without the need for underwriting. So underwriting 60 00:03:13,520 --> 00:03:16,000 Speaker 2: is the process that you go through when you apply 61 00:03:16,200 --> 00:03:20,440 Speaker 2: for a policy outside of superannuation and sometimes inside of superranuation. 62 00:03:20,800 --> 00:03:24,160 Speaker 2: We're an underwriter who is somebody who works at insurance 63 00:03:24,200 --> 00:03:26,040 Speaker 2: company and their job is to look at each and 64 00:03:26,080 --> 00:03:29,200 Speaker 2: every single individual that comes into their insurance plan and says, 65 00:03:29,440 --> 00:03:30,960 Speaker 2: all right, let me have a quick look at g. 66 00:03:31,400 --> 00:03:33,560 Speaker 2: I want to see if she's going to be really 67 00:03:33,680 --> 00:03:36,320 Speaker 2: risky if we ensure her. Let's have a look at 68 00:03:36,360 --> 00:03:39,440 Speaker 2: her history of illness and injury and see what she's 69 00:03:39,680 --> 00:03:42,640 Speaker 2: like to insure, and then we're going to offer cover 70 00:03:43,240 --> 00:03:46,120 Speaker 2: based on that situation. If you're somebody who works in 71 00:03:46,160 --> 00:03:48,520 Speaker 2: a really risky industry, you might go, oh, my gosh, 72 00:03:48,560 --> 00:03:53,200 Speaker 2: like I have really limited superanuation options. We know that 73 00:03:53,240 --> 00:03:55,840 Speaker 2: people in the sex work industry, we know that people 74 00:03:55,920 --> 00:04:01,200 Speaker 2: in aviation often really struggle to get income protection insurance 75 00:04:01,320 --> 00:04:04,640 Speaker 2: because insurants look at them and go, no, absolutely not. 76 00:04:04,800 --> 00:04:08,000 Speaker 2: You're too risky. You're very likely to claim. Therefore, we 77 00:04:08,040 --> 00:04:11,040 Speaker 2: don't want to ensure you. I have a client actually 78 00:04:11,080 --> 00:04:13,480 Speaker 2: who's probably listening to this because she listens to everything. 79 00:04:13,520 --> 00:04:16,599 Speaker 2: So Hi, my friend. But she is a traffic controller, 80 00:04:16,920 --> 00:04:19,359 Speaker 2: so she isn't even in a plane. She just sits 81 00:04:19,360 --> 00:04:22,120 Speaker 2: in the tower every day directing planes coming in and 82 00:04:22,160 --> 00:04:25,359 Speaker 2: out of Melbourne International Airport, and she's not able to 83 00:04:25,360 --> 00:04:28,120 Speaker 2: get income protection because her job is deemed too risky 84 00:04:28,200 --> 00:04:30,560 Speaker 2: for insurers to want to take it on. So one 85 00:04:30,560 --> 00:04:33,920 Speaker 2: of the benefits of having these group policies is that 86 00:04:33,960 --> 00:04:36,520 Speaker 2: you don't need to go through that underwriting process and 87 00:04:36,560 --> 00:04:39,920 Speaker 2: you can access it very quickly. But when you have 88 00:04:40,000 --> 00:04:43,200 Speaker 2: insurance inside subranuation, which sounds like a really sexy option 89 00:04:43,279 --> 00:04:47,000 Speaker 2: because obviously inside supbranuation it's generally taxed at a lower 90 00:04:47,080 --> 00:04:49,600 Speaker 2: rate than income tax, so you're saving some money. It's 91 00:04:49,600 --> 00:04:55,160 Speaker 2: a bit of a money win. However, they're usually lackluster policies. 92 00:04:55,360 --> 00:04:58,080 Speaker 2: I would say, so if you've got life insurance, instead 93 00:04:58,080 --> 00:05:00,560 Speaker 2: of having the full amount of life insurance that maybe 94 00:05:00,680 --> 00:05:04,159 Speaker 2: Georgia you need, you have the default amount. And a 95 00:05:04,200 --> 00:05:06,679 Speaker 2: good example of this is a client that I recently 96 00:05:06,720 --> 00:05:08,719 Speaker 2: sent to my friend Phil, who a lot of you 97 00:05:08,760 --> 00:05:11,279 Speaker 2: guys in the Shees on the Money community know because 98 00:05:11,279 --> 00:05:13,160 Speaker 2: Phil is partnered with She's on the Money. I mean, 99 00:05:13,200 --> 00:05:15,280 Speaker 2: he doesn't pay us. I just really like his business 100 00:05:15,279 --> 00:05:16,839 Speaker 2: and what he does, and I no longer have the 101 00:05:16,839 --> 00:05:19,040 Speaker 2: capacity to do all of this work, so I send 102 00:05:19,040 --> 00:05:21,520 Speaker 2: a lot of it over to Phil Thompson at sky Wealth, 103 00:05:21,720 --> 00:05:24,919 Speaker 2: who does insurance only. So the thing I love about 104 00:05:25,000 --> 00:05:26,760 Speaker 2: him is that, you know, this isn't meant to be 105 00:05:26,839 --> 00:05:28,680 Speaker 2: like a Phil Thompson thing, but he'll love these g 106 00:05:28,920 --> 00:05:30,320 Speaker 2: He'll listen to this and be like, Wow, you're so 107 00:05:30,440 --> 00:05:31,960 Speaker 2: nice to me, And I'll be like never again. So 108 00:05:32,279 --> 00:05:34,960 Speaker 2: never again. But the thing I like about him is 109 00:05:35,040 --> 00:05:37,680 Speaker 2: it's really affordable to get advice from him. Instead of 110 00:05:37,680 --> 00:05:40,039 Speaker 2: thousands of dollars, he's a couple of hundred dollars to 111 00:05:40,080 --> 00:05:43,919 Speaker 2: do the advice for just your insurances, and that's a 112 00:05:44,000 --> 00:05:45,760 Speaker 2: much better position to be. And if you're like me, 113 00:05:45,960 --> 00:05:48,799 Speaker 2: I can't afford full service financial advice, but I want 114 00:05:48,800 --> 00:05:51,200 Speaker 2: a policy that only a financial advisor can access. And 115 00:05:51,279 --> 00:05:54,200 Speaker 2: I also want a financial advisor's advice on exactly what 116 00:05:54,240 --> 00:05:56,200 Speaker 2: I need or my family needs or whatever that is. 117 00:05:56,480 --> 00:05:58,159 Speaker 2: And I think for like three hundred and fifty dollars 118 00:05:58,200 --> 00:06:00,560 Speaker 2: or four hundred and fifty dollars, I can't remember, that's 119 00:06:00,600 --> 00:06:03,359 Speaker 2: like his total advice fee. Obviously, then you have to 120 00:06:03,400 --> 00:06:06,600 Speaker 2: pay for the actual insurance, but I think that's a 121 00:06:06,640 --> 00:06:09,600 Speaker 2: bit of a money in anyway. I digress, But essentially 122 00:06:09,640 --> 00:06:12,440 Speaker 2: they usually lower policies. So an example of this is 123 00:06:12,480 --> 00:06:14,479 Speaker 2: I sent someone from Cheese on the Money to fill 124 00:06:14,720 --> 00:06:16,520 Speaker 2: and they had one hundred and fifty thousand dollars of 125 00:06:16,560 --> 00:06:18,320 Speaker 2: life insurance and they're like, that's a lot of money. 126 00:06:18,520 --> 00:06:20,560 Speaker 2: But when we looked at it, they had two mortgages, 127 00:06:20,600 --> 00:06:23,000 Speaker 2: they had two young kids, they've got a husband, and 128 00:06:23,040 --> 00:06:25,480 Speaker 2: when we did their life insurance, they needed two and 129 00:06:25,520 --> 00:06:27,760 Speaker 2: a half million dollars worth of cover because that's the 130 00:06:27,760 --> 00:06:31,159 Speaker 2: stage of life that they're in. And unfortunately the superannuation 131 00:06:31,360 --> 00:06:33,560 Speaker 2: product had a cap and they were like, oh, you 132 00:06:33,600 --> 00:06:35,560 Speaker 2: can only go out to five hundred thousand dollars and 133 00:06:35,600 --> 00:06:38,520 Speaker 2: you can only claim for certain things, whereas a policy 134 00:06:38,640 --> 00:06:40,800 Speaker 2: that made more sense to them, that was set up 135 00:06:40,880 --> 00:06:44,320 Speaker 2: by a financial advisor makes more sense. So inside super 136 00:06:44,480 --> 00:06:46,600 Speaker 2: I love that there's a default, and that means that 137 00:06:46,760 --> 00:06:49,960 Speaker 2: so many of you just have cover already without even 138 00:06:50,040 --> 00:06:53,359 Speaker 2: having to think about it. However, it might not be 139 00:06:53,480 --> 00:06:55,240 Speaker 2: the right fit for you and you might need to 140 00:06:55,320 --> 00:06:59,000 Speaker 2: change it. So inside Superannuation, you can hold income protection, 141 00:06:59,160 --> 00:07:01,960 Speaker 2: you can hold life insurance, and you can usually hold 142 00:07:02,480 --> 00:07:06,920 Speaker 2: some level of TPD, which is total and permanent disability. 143 00:07:07,480 --> 00:07:10,520 Speaker 2: G please remind me, but what date did we do 144 00:07:10,640 --> 00:07:12,280 Speaker 2: our personal insurances episode? 145 00:07:12,320 --> 00:07:14,000 Speaker 4: Oh, let me cast my mind back. I think it 146 00:07:14,040 --> 00:07:16,280 Speaker 4: was the eighteen year twenty twenty. 147 00:07:16,400 --> 00:07:19,840 Speaker 2: Yeah, okay, smarty pants, but go listen to that episode 148 00:07:19,840 --> 00:07:22,320 Speaker 2: because it really breaks down each and every single type 149 00:07:22,320 --> 00:07:25,360 Speaker 2: of personal insurance and I think it's really important. But 150 00:07:25,560 --> 00:07:29,040 Speaker 2: essentially insurance inside super is generally not nearly enough cover. 151 00:07:29,200 --> 00:07:31,800 Speaker 2: It's usually a group policy, which means it is not 152 00:07:31,920 --> 00:07:35,440 Speaker 2: taking your personal circumstances into consideration and you're not being 153 00:07:35,520 --> 00:07:39,000 Speaker 2: put in the best possible position. However, it being inside 154 00:07:39,040 --> 00:07:42,280 Speaker 2: super isn't the issue. It's the default cover. Because you 155 00:07:42,360 --> 00:07:45,040 Speaker 2: might go down the road g talk to feel be like, hey, 156 00:07:45,040 --> 00:07:47,240 Speaker 2: Phil need insurance, and he goes, great, you need a 157 00:07:47,240 --> 00:07:50,000 Speaker 2: life insurance policy that's different, and you'll be like, thanks, 158 00:07:50,000 --> 00:07:51,760 Speaker 2: no problems. He'll say, do you want me to just 159 00:07:51,800 --> 00:07:55,080 Speaker 2: put in your super You're like, great, money win, no problems, 160 00:07:55,280 --> 00:07:58,880 Speaker 2: and you can sort that out. However, your default cover 161 00:07:59,240 --> 00:08:02,360 Speaker 2: that you might have with your industry superfund might not 162 00:08:02,560 --> 00:08:05,480 Speaker 2: be enough and it might not be comprehensive enough for 163 00:08:05,520 --> 00:08:07,560 Speaker 2: you to go all right, well, I'm comfortable with this. 164 00:08:08,040 --> 00:08:10,920 Speaker 2: The same is true for income protection. I spoke about 165 00:08:10,920 --> 00:08:14,880 Speaker 2: this on that personal insurance episode. But often income protection 166 00:08:15,040 --> 00:08:19,080 Speaker 2: policies that are held inside superannuation that are default have 167 00:08:19,320 --> 00:08:22,840 Speaker 2: a time cap. So that means that if you go 168 00:08:22,960 --> 00:08:25,880 Speaker 2: of e, I'm fine, I checked, I do have income protection, 169 00:08:26,480 --> 00:08:29,600 Speaker 2: you might actually only have an income protection policy that 170 00:08:29,720 --> 00:08:33,040 Speaker 2: will pay you for two years. It won't pay you 171 00:08:33,200 --> 00:08:36,079 Speaker 2: until the age of sixty five like a policy I have. 172 00:08:36,559 --> 00:08:38,920 Speaker 2: And the reason that's so important is George, if I 173 00:08:38,920 --> 00:08:41,240 Speaker 2: get injured at work and can never return to work again, 174 00:08:41,520 --> 00:08:43,800 Speaker 2: two years of cover is going to do nothing. I 175 00:08:43,920 --> 00:08:46,679 Speaker 2: need to be covered until retirement age so I can 176 00:08:46,720 --> 00:08:49,040 Speaker 2: still meet my financial goals and my life goals and 177 00:08:49,120 --> 00:08:52,640 Speaker 2: still have a life, Whereas if I had relied solely 178 00:08:52,720 --> 00:08:55,480 Speaker 2: on that two year policy that was inside my superfund, 179 00:08:55,720 --> 00:08:58,280 Speaker 2: after two years, I'd be scrambling to work out what 180 00:08:58,360 --> 00:08:59,880 Speaker 2: I was going to do if I was on a 181 00:09:00,040 --> 00:09:02,280 Speaker 2: able to return to work. So I think it's really 182 00:09:02,320 --> 00:09:06,439 Speaker 2: important to understand the semantics around that. The only insurance 183 00:09:06,480 --> 00:09:10,320 Speaker 2: you cannot hold inside superranuation is called trauma insurance, and 184 00:09:10,400 --> 00:09:12,880 Speaker 2: to me that's quite an important one. But again it's 185 00:09:13,000 --> 00:09:15,400 Speaker 2: kind of like the icing on the top. I would 186 00:09:15,480 --> 00:09:19,079 Speaker 2: really prioritize getting income protection because it baffles me here 187 00:09:19,080 --> 00:09:22,440 Speaker 2: in Australia that g you'll insury your iPhone, you'll insure 188 00:09:22,520 --> 00:09:25,640 Speaker 2: your car, you'll you know, we did a travel episode recently, 189 00:09:25,800 --> 00:09:27,960 Speaker 2: you'll go and insure the camera that you bought. That's 190 00:09:28,000 --> 00:09:30,000 Speaker 2: you know, a couple of grand and I totally get that, 191 00:09:30,320 --> 00:09:32,880 Speaker 2: but you don't look at yourself as an asset like 192 00:09:33,040 --> 00:09:35,720 Speaker 2: you and your body are able to go to work 193 00:09:35,760 --> 00:09:40,199 Speaker 2: every day, g and make money. That is your biggest resource. 194 00:09:40,240 --> 00:09:43,200 Speaker 2: That is your biggest asset. Why aren't we protecting that? 195 00:09:43,320 --> 00:09:46,080 Speaker 2: And that's what income protection does. So I won't go 196 00:09:46,120 --> 00:09:50,080 Speaker 2: on and on, but essentially, insurance inside superanuation can be 197 00:09:50,120 --> 00:09:52,400 Speaker 2: a little bit lackluster and not put you in the 198 00:09:52,440 --> 00:09:55,680 Speaker 2: best possible position. Holding an inside zuper is not a 199 00:09:55,720 --> 00:09:57,640 Speaker 2: bad idea. It can be a bit of a money 200 00:09:57,640 --> 00:09:59,880 Speaker 2: win when it comes to tax and what you pay. 201 00:10:00,480 --> 00:10:03,480 Speaker 2: But it's all about being proactive and having a look 202 00:10:03,480 --> 00:10:05,920 Speaker 2: at it and going is this serving my needs and 203 00:10:05,960 --> 00:10:08,520 Speaker 2: what I actually need to get out of an insurance policy? 204 00:10:08,760 --> 00:10:10,720 Speaker 2: And if you haven't reviewed it, I guess now is 205 00:10:10,760 --> 00:10:12,679 Speaker 2: the time to do that, my friends? All right? 206 00:10:12,800 --> 00:10:17,960 Speaker 4: Next one under this super umbrella V. It comes from Ariana. 207 00:10:18,120 --> 00:10:21,160 Speaker 4: I ditched insurance from my super in my early twenties. 208 00:10:21,280 --> 00:10:23,400 Speaker 4: Now I'm thirty five and I'm wondering. 209 00:10:23,080 --> 00:10:25,240 Speaker 2: Where to start. This is a really common one for 210 00:10:25,320 --> 00:10:28,120 Speaker 2: our community. I would start by having a look at 211 00:10:28,120 --> 00:10:31,280 Speaker 2: your super fund. I've said it before. Call your super fund, 212 00:10:31,360 --> 00:10:33,520 Speaker 2: have a chat to them about what they offer, so 213 00:10:33,640 --> 00:10:36,320 Speaker 2: you know what that looks like. But in all honesty, 214 00:10:36,360 --> 00:10:38,560 Speaker 2: if you're thirty five and do not have any insurance, 215 00:10:38,679 --> 00:10:42,160 Speaker 2: i'd go talk to a financial advisor, absolutely straight out 216 00:10:42,160 --> 00:10:44,800 Speaker 2: of the gate, go and organize your insurances. It will 217 00:10:44,840 --> 00:10:46,680 Speaker 2: be one of the most important things you do for 218 00:10:46,720 --> 00:10:47,720 Speaker 2: your financial future. 219 00:10:48,080 --> 00:10:52,680 Speaker 4: All right, let's move on now. V two Income insurances, 220 00:10:52,880 --> 00:10:56,120 Speaker 4: which I know you just encover. Protection extremely important. 221 00:10:56,440 --> 00:10:58,760 Speaker 2: I will talk about this all day if you guys 222 00:10:58,760 --> 00:11:02,760 Speaker 2: will listenab grab a drink. This is not Friday drinks, 223 00:11:02,800 --> 00:11:05,280 Speaker 2: but this is what I talk about with my friends 224 00:11:05,280 --> 00:11:09,240 Speaker 2: at Friday drinks in real life. Gee, exactly right. No, really, 225 00:11:09,640 --> 00:11:10,800 Speaker 2: it's a bit sad. Okay. 226 00:11:10,840 --> 00:11:13,880 Speaker 4: The first question here comes from Beck as a sole trader. 227 00:11:14,040 --> 00:11:16,160 Speaker 4: What options do you have for income protection? 228 00:11:16,320 --> 00:11:18,880 Speaker 2: You have a lot of options. The important thing here 229 00:11:19,200 --> 00:11:22,200 Speaker 2: is proving your financials in the same way that you 230 00:11:22,240 --> 00:11:24,880 Speaker 2: would have to apply for a mortgage. So sole traders 231 00:11:24,880 --> 00:11:27,200 Speaker 2: obviously get the raw end of the deal when it 232 00:11:27,240 --> 00:11:31,080 Speaker 2: comes to getting approoved for anything. Let's be honest, however, 233 00:11:31,120 --> 00:11:34,520 Speaker 2: it's about having clean bookkeeping and clean financials and going 234 00:11:34,559 --> 00:11:37,040 Speaker 2: to an insurance provider and saying, hey, cool, I want 235 00:11:37,040 --> 00:11:39,520 Speaker 2: to apply for income protection. I'm a consultant, I am 236 00:11:39,520 --> 00:11:42,360 Speaker 2: an engineer, I do whatever I do, and then going 237 00:11:42,480 --> 00:11:44,920 Speaker 2: this is my income and this is how I've proven it. 238 00:11:45,200 --> 00:11:47,680 Speaker 2: So usually you can't go straight out on your own 239 00:11:47,720 --> 00:11:49,400 Speaker 2: and go, oh my gosh, I'm out on my own 240 00:11:49,440 --> 00:11:52,800 Speaker 2: and I've organized my insurance. It's very unlikely that they'll 241 00:11:52,840 --> 00:11:55,200 Speaker 2: accept that because they'll honestly, they'll just see you as 242 00:11:55,280 --> 00:11:58,080 Speaker 2: unemployed at that point. However, if you've got a couple 243 00:11:58,160 --> 00:12:00,120 Speaker 2: of years of tax returns and you've proven you our 244 00:12:00,160 --> 00:12:04,240 Speaker 2: ability to generate income, they're very likely to consider it. Obviously, 245 00:12:04,480 --> 00:12:06,080 Speaker 2: you need to make sure that you're not a sole 246 00:12:06,080 --> 00:12:08,960 Speaker 2: trader in an industry that doesn't have a good time 247 00:12:09,000 --> 00:12:11,920 Speaker 2: when it comes to income protection. However, I would again 248 00:12:12,040 --> 00:12:15,600 Speaker 2: be talking specifically to a financial advisor and working out 249 00:12:15,679 --> 00:12:18,920 Speaker 2: what actual insurances you need as a small business owner, 250 00:12:18,960 --> 00:12:20,760 Speaker 2: because if you're a soule trader, you're a small business 251 00:12:20,800 --> 00:12:24,360 Speaker 2: owner basically, and working out what other insurances you need 252 00:12:24,360 --> 00:12:27,120 Speaker 2: because you might need like public indemnity insurance or any 253 00:12:27,160 --> 00:12:30,079 Speaker 2: other types of insurance that are necessary for your industry. 254 00:12:30,320 --> 00:12:32,240 Speaker 2: So it really would be important to talk to a 255 00:12:32,240 --> 00:12:34,280 Speaker 2: financial advisor or an insurance broker. 256 00:12:34,760 --> 00:12:38,560 Speaker 4: Nice, all right, let's move on to Katie now, Kai Katie, 257 00:12:38,720 --> 00:12:43,520 Speaker 4: I'm nervous about income protection due to pre existing conditions. 258 00:12:43,600 --> 00:12:45,800 Speaker 4: Do you have any tips? So I'm sarving that means 259 00:12:45,840 --> 00:12:47,080 Speaker 4: health conditions, right. 260 00:12:47,080 --> 00:12:49,880 Speaker 2: Yeah, So a pre existing condition is something that will 261 00:12:49,920 --> 00:12:53,640 Speaker 2: either limit your ability to get income protection to its 262 00:12:53,640 --> 00:12:56,959 Speaker 2: full capacity or it will stop you from getting it completely. 263 00:12:57,440 --> 00:13:00,600 Speaker 2: So in our industry, g this is cooked. And a 264 00:13:00,600 --> 00:13:03,000 Speaker 2: few people that are very close to us have recently 265 00:13:03,000 --> 00:13:06,680 Speaker 2: gone through this, and it makes my blood boil. Drink COVID. 266 00:13:06,720 --> 00:13:09,200 Speaker 2: We had a pretty pretty hard time right rough time. 267 00:13:09,360 --> 00:13:13,920 Speaker 2: Rough time, really isolated. People were going online and getting 268 00:13:13,960 --> 00:13:17,960 Speaker 2: telehealth appointments and organizing psychologists to talk through that because 269 00:13:18,080 --> 00:13:21,120 Speaker 2: arguably we went through a traumatic event together, right. It 270 00:13:21,200 --> 00:13:24,520 Speaker 2: was not easy. However, recently, I've had a few people 271 00:13:24,559 --> 00:13:28,199 Speaker 2: put in insurance applications for income protection and it has 272 00:13:28,280 --> 00:13:31,160 Speaker 2: come back from the insurer and they've said, look, because 273 00:13:31,200 --> 00:13:34,479 Speaker 2: they saw a psychologist and had quote mental health issues, 274 00:13:34,800 --> 00:13:37,200 Speaker 2: we're not able to give them cover for mental health. 275 00:13:37,640 --> 00:13:40,600 Speaker 2: So they give you what's called an exclusion, which is 276 00:13:40,640 --> 00:13:44,440 Speaker 2: where they exclude a part of you from being insured. 277 00:13:45,040 --> 00:13:47,520 Speaker 2: So they will say, look, gee, I'm not going to 278 00:13:47,640 --> 00:13:50,280 Speaker 2: ensure your mental health, but I will ensure everything else. 279 00:13:50,520 --> 00:13:52,439 Speaker 2: So if you stop work because you broke your leg 280 00:13:52,480 --> 00:13:54,520 Speaker 2: and you no longer can come into the studio, we'll 281 00:13:54,559 --> 00:13:57,719 Speaker 2: cover that. However, if you have to take time off 282 00:13:57,760 --> 00:13:59,800 Speaker 2: and you're not able to work due to your mental 283 00:13:59,840 --> 00:14:02,640 Speaker 2: health health, we won't be covering that, and you go, well, 284 00:14:03,080 --> 00:14:08,120 Speaker 2: that's a bit unfair. Exclusions do suck. They are very common. 285 00:14:08,400 --> 00:14:12,960 Speaker 2: The insurance industry is getting so strict. Honestly, they are 286 00:14:13,040 --> 00:14:16,520 Speaker 2: so behind from my perspective, in understanding mental health and 287 00:14:16,600 --> 00:14:20,920 Speaker 2: understanding medication and what people go through. I mean, they're trying. 288 00:14:21,160 --> 00:14:23,760 Speaker 2: It is a very dated industry in a way, but 289 00:14:23,880 --> 00:14:26,960 Speaker 2: a lot of people are trying a lot of things. However, 290 00:14:27,280 --> 00:14:30,120 Speaker 2: I think it's really important to understand that the earlier 291 00:14:30,240 --> 00:14:34,120 Speaker 2: you get insurance, the less likely you are to have 292 00:14:34,240 --> 00:14:37,440 Speaker 2: an exclusion on your policy. So the older you get, 293 00:14:37,640 --> 00:14:39,440 Speaker 2: the more likely you are to break things or have 294 00:14:39,520 --> 00:14:41,760 Speaker 2: a bad back, or you know, twist your ankle at 295 00:14:41,760 --> 00:14:44,840 Speaker 2: netball like I've done before. And I'm in the very 296 00:14:44,880 --> 00:14:47,840 Speaker 2: grateful position where I got my income protection when I 297 00:14:47,960 --> 00:14:50,160 Speaker 2: was quite young, So it was when I was first 298 00:14:50,160 --> 00:14:52,640 Speaker 2: in the industry, like maybe twenty two year old. Victoria 299 00:14:52,800 --> 00:14:55,480 Speaker 2: was like rearing to go. She got her income protection 300 00:14:55,960 --> 00:14:59,440 Speaker 2: and had absolutely no exclusions. However, I'm telling you right now, 301 00:14:59,520 --> 00:15:02,920 Speaker 2: if I to apply for income protection, that would exclude 302 00:15:02,920 --> 00:15:05,120 Speaker 2: my back because I sit at a desk all day 303 00:15:05,160 --> 00:15:07,760 Speaker 2: and I go to a physio relatively often for massages 304 00:15:07,800 --> 00:15:10,360 Speaker 2: and making sure that I stop getting these random headaches 305 00:15:10,360 --> 00:15:12,720 Speaker 2: that I get. I also have a mental health care 306 00:15:12,760 --> 00:15:15,400 Speaker 2: plan and I see a psychologist more regularly. I'm not 307 00:15:15,400 --> 00:15:17,200 Speaker 2: saying I didn't need it. At twenty two, I was 308 00:15:17,280 --> 00:15:19,560 Speaker 2: just a lot poorer and couldn't afford my mental health 309 00:15:19,640 --> 00:15:22,320 Speaker 2: care plan, so I wasn't doing it. But now I'm 310 00:15:22,360 --> 00:15:25,960 Speaker 2: in my thirties, I see a psychologist regularly. But because 311 00:15:26,000 --> 00:15:28,600 Speaker 2: I see a psychologist regularly, and the reason I see 312 00:15:28,640 --> 00:15:31,920 Speaker 2: a psychologist is, you know, noted down as depression and anxiety, 313 00:15:32,200 --> 00:15:34,960 Speaker 2: I know for sure that I wouldn't have got income 314 00:15:34,960 --> 00:15:38,360 Speaker 2: protection on that, which is really disappointing but so important 315 00:15:38,360 --> 00:15:41,120 Speaker 2: to talk about because it's a really disappointing thing to 316 00:15:41,160 --> 00:15:43,480 Speaker 2: happen when you've been working with a financial advisor and 317 00:15:43,480 --> 00:15:45,520 Speaker 2: they come back and be like, hey, gee, so we 318 00:15:45,600 --> 00:15:48,520 Speaker 2: reviewed your circumstances and your application, and they spoke to 319 00:15:48,560 --> 00:15:50,520 Speaker 2: your doctor, and they're not willing to cover your ankle 320 00:15:50,800 --> 00:15:53,160 Speaker 2: or you need or your back or this certain part 321 00:15:53,160 --> 00:15:55,040 Speaker 2: of your back, or your mental health, and I just 322 00:15:55,080 --> 00:15:58,360 Speaker 2: think it's it's a bit sucky. But essentially, if you're 323 00:15:58,480 --> 00:16:02,240 Speaker 2: worried about income protect for pre existing conditions, the best 324 00:16:02,240 --> 00:16:04,240 Speaker 2: thing you can do is actually talk to a financial 325 00:16:04,280 --> 00:16:08,120 Speaker 2: advisor about it. See what insurers are the best options 326 00:16:08,160 --> 00:16:12,000 Speaker 2: for you, because different insurers have different policies. So I 327 00:16:12,040 --> 00:16:14,040 Speaker 2: know that if I'm talking to a client and they 328 00:16:14,240 --> 00:16:16,600 Speaker 2: have a higher BMI, I know that there are a 329 00:16:16,640 --> 00:16:19,120 Speaker 2: few insurers I'll go down the road to instead of 330 00:16:19,200 --> 00:16:21,680 Speaker 2: others because I know the breadth of what they will 331 00:16:21,720 --> 00:16:25,680 Speaker 2: and won't accept just from experience, and a financial advisor 332 00:16:25,800 --> 00:16:27,840 Speaker 2: is going to guide you through that. And then if 333 00:16:27,840 --> 00:16:30,800 Speaker 2: you do have an exclusion, one of the most important 334 00:16:30,840 --> 00:16:33,880 Speaker 2: things I would ask my financial advisor is, Hey, Georgia, 335 00:16:34,000 --> 00:16:36,800 Speaker 2: I see I've got an exclusion. Is it ever going 336 00:16:36,840 --> 00:16:39,240 Speaker 2: to be reviewed? Is this blanket? Like, is this something 337 00:16:39,280 --> 00:16:42,240 Speaker 2: that's going to exist for the entire policy or at 338 00:16:42,280 --> 00:16:44,760 Speaker 2: what point in time are they willing to review it? 339 00:16:44,840 --> 00:16:48,040 Speaker 2: Because often I ask that question, like every single time 340 00:16:48,080 --> 00:16:51,600 Speaker 2: I've gotten an exclusion, and sometimes the underwriter will come 341 00:16:51,640 --> 00:16:54,440 Speaker 2: back and be like, oh, well, actually, we can review 342 00:16:54,480 --> 00:16:57,560 Speaker 2: that in two years if she has a clean medical record. 343 00:16:57,880 --> 00:16:59,760 Speaker 2: So then in two years you'll come back and be like, 344 00:16:59,800 --> 00:17:02,080 Speaker 2: haven't had any issues with my ankle, haven't had to 345 00:17:02,080 --> 00:17:04,400 Speaker 2: do anything. Can you guys please remove it? And they 346 00:17:04,560 --> 00:17:07,120 Speaker 2: very likely will. So I think it's about just knowing 347 00:17:07,160 --> 00:17:10,320 Speaker 2: what you can and can't do. But the biggest thing 348 00:17:10,359 --> 00:17:12,800 Speaker 2: I would say there is it is not a bad 349 00:17:12,840 --> 00:17:15,760 Speaker 2: thing to have exclusions because you're still getting access to 350 00:17:15,800 --> 00:17:18,960 Speaker 2: the rest of that income protection policy. So you're covered 351 00:17:18,960 --> 00:17:21,880 Speaker 2: for cancer and you're covered for everything else that might 352 00:17:21,920 --> 00:17:25,040 Speaker 2: potentially go wrong. And I think sometimes people throw their 353 00:17:25,040 --> 00:17:26,720 Speaker 2: hands in there and go, well if I'm not covered 354 00:17:26,720 --> 00:17:29,320 Speaker 2: for mental health, like, what's the point, Like, because mental 355 00:17:29,320 --> 00:17:31,159 Speaker 2: health is not the only reason. Yeah, my how to 356 00:17:31,160 --> 00:17:33,639 Speaker 2: stop works. Yeah, there's a lot of other things that 357 00:17:33,680 --> 00:17:34,320 Speaker 2: are included. 358 00:17:34,520 --> 00:17:37,600 Speaker 4: This could be a silly question, but say God forbid, 359 00:17:37,680 --> 00:17:40,840 Speaker 4: tomorrow I get diagnosed with cancer. I can't then apply 360 00:17:41,240 --> 00:17:42,520 Speaker 4: for coming yet. 361 00:17:42,800 --> 00:17:45,679 Speaker 2: That would be a pre existing condition, and they would say, George, I, like, 362 00:17:45,720 --> 00:17:48,560 Speaker 2: you already had this, We're not covering you, and so 363 00:17:48,760 --> 00:17:51,960 Speaker 2: that's why just get it while you're healthy. So many 364 00:17:52,000 --> 00:17:54,119 Speaker 2: times we say, oh my gosh, I don't need it, 365 00:17:54,160 --> 00:17:55,600 Speaker 2: Like I'm not going to waste my money on that 366 00:17:55,640 --> 00:17:58,800 Speaker 2: because I'm healthy and young. Like things happen to people 367 00:17:58,880 --> 00:18:02,359 Speaker 2: every single day, and unfortunately in my industry because of 368 00:18:02,400 --> 00:18:05,199 Speaker 2: what I see and what my actual job is, like 369 00:18:05,320 --> 00:18:07,760 Speaker 2: I'm a part of that claims process, Like I have 370 00:18:07,880 --> 00:18:11,640 Speaker 2: seen people in their late twenties be absolutely wiped out 371 00:18:12,200 --> 00:18:16,119 Speaker 2: financially and their working capacity from things they never foresaw coming. 372 00:18:16,560 --> 00:18:18,560 Speaker 2: Like I had a client, and you know, he's a 373 00:18:18,640 --> 00:18:21,480 Speaker 2: really good client of mine, one of the fittest guys 374 00:18:21,520 --> 00:18:24,080 Speaker 2: you will ever meet, late twenties, was riding his bike 375 00:18:24,119 --> 00:18:27,080 Speaker 2: through the Melbourne CBD got hit by a bus. He's 376 00:18:27,200 --> 00:18:30,720 Speaker 2: okay now. That broke his pelvis, both his legs, a 377 00:18:30,760 --> 00:18:33,359 Speaker 2: whole heap of ribs, and was not able to work 378 00:18:33,680 --> 00:18:37,720 Speaker 2: for a good eight months because you couldn't. Income protection 379 00:18:37,880 --> 00:18:40,639 Speaker 2: saved him because he had a mortgage and two young kids, 380 00:18:40,640 --> 00:18:43,120 Speaker 2: and that's the thing that enabled him to one take 381 00:18:43,200 --> 00:18:46,800 Speaker 2: sickly from work but also be able to provide for 382 00:18:46,880 --> 00:18:49,919 Speaker 2: his family. So for me, it is really important. It 383 00:18:49,920 --> 00:18:52,760 Speaker 2: doesn't matter how healthy you are, because bad things happen 384 00:18:52,800 --> 00:18:53,879 Speaker 2: to good people, all right. 385 00:18:54,000 --> 00:18:56,479 Speaker 4: Last one here before we had to a little break 386 00:18:56,560 --> 00:18:59,160 Speaker 4: it comes from Nicole. How do I choose a provider 387 00:18:59,240 --> 00:19:02,400 Speaker 4: for income protection insurance? It's overwhelming? 388 00:19:02,560 --> 00:19:04,560 Speaker 2: I feel like this is I sound like a broken 389 00:19:04,560 --> 00:19:06,520 Speaker 2: record age. Go see a financial advisor. I have a 390 00:19:06,600 --> 00:19:08,959 Speaker 2: chat to Phil Thompson from sky Wealth. I am obviously 391 00:19:09,000 --> 00:19:10,600 Speaker 2: a big fan of him. But that's because I trust 392 00:19:10,640 --> 00:19:13,119 Speaker 2: his advice and I trust that that she's on the 393 00:19:13,119 --> 00:19:15,719 Speaker 2: money community know that, like I'm not making money from 394 00:19:15,760 --> 00:19:18,440 Speaker 2: pheel Like there's no referral arrangement or anything like that. 395 00:19:18,520 --> 00:19:20,720 Speaker 2: I just think it's so important to put you guys 396 00:19:20,720 --> 00:19:23,399 Speaker 2: in the best possible position. And how good is it? 397 00:19:23,480 --> 00:19:25,760 Speaker 2: G Like she's on the money has meant that my 398 00:19:25,840 --> 00:19:28,280 Speaker 2: business can't take on any more clients at this point, 399 00:19:28,440 --> 00:19:31,560 Speaker 2: So why wouldn't I promote the best financial advisors that 400 00:19:31,640 --> 00:19:33,800 Speaker 2: I know? So it makes sense, but I would talk 401 00:19:33,840 --> 00:19:36,600 Speaker 2: to a financial advisor. But I also believe this is 402 00:19:36,760 --> 00:19:40,120 Speaker 2: so lame. But I believe that an income protection policy 403 00:19:40,200 --> 00:19:42,600 Speaker 2: kind of chooses you because it's like a funnel. Right, 404 00:19:42,640 --> 00:19:45,679 Speaker 2: we set out to understand what we need. We go, 405 00:19:45,760 --> 00:19:47,560 Speaker 2: all right, well, what do we actually need? We might 406 00:19:47,560 --> 00:19:49,600 Speaker 2: need a certain amount of cover that might push a 407 00:19:49,600 --> 00:19:52,320 Speaker 2: lot of policies off the table because there are you know, 408 00:19:52,520 --> 00:19:54,760 Speaker 2: a limited number that off of the amount that you need, 409 00:19:55,119 --> 00:19:57,359 Speaker 2: it might be pre existing conditions. So you need to 410 00:19:57,400 --> 00:19:59,879 Speaker 2: work with an insurer that actually will accept that or 411 00:20:00,080 --> 00:20:02,040 Speaker 2: give you terms that make sense to you and your 412 00:20:02,080 --> 00:20:06,120 Speaker 2: personal circumstances. In our insurance industry, BMI is a really 413 00:20:06,160 --> 00:20:08,800 Speaker 2: big thing. I hate talking about this because I think 414 00:20:08,800 --> 00:20:12,399 Speaker 2: it's ridiculous. BMI I don't believe is a good indicator 415 00:20:12,440 --> 00:20:15,800 Speaker 2: of health. However the insurance industry does. And if you've 416 00:20:15,840 --> 00:20:18,480 Speaker 2: got a higher BMI or even a lower BMI, there 417 00:20:18,520 --> 00:20:22,000 Speaker 2: are particular insurance companies that I would use over and 418 00:20:22,000 --> 00:20:25,480 Speaker 2: above that. But you need to take your personal circumstances 419 00:20:25,480 --> 00:20:28,879 Speaker 2: into consideration before you actually look at a company. You 420 00:20:28,920 --> 00:20:30,679 Speaker 2: can't just head to a company's website and be like, oh, 421 00:20:30,720 --> 00:20:32,600 Speaker 2: these guys look good. I'll look at their pds and 422 00:20:32,640 --> 00:20:36,080 Speaker 2: make sure they're fine. Because some policies have really good 423 00:20:36,080 --> 00:20:39,760 Speaker 2: guynecological care. Others don't have that at all. There are 424 00:20:39,760 --> 00:20:43,479 Speaker 2: other insurance policies g that only cover one type of 425 00:20:43,760 --> 00:20:45,960 Speaker 2: breast cancer and not the other. So if you have 426 00:20:46,080 --> 00:20:48,600 Speaker 2: the Bracker gene, which is the gene that is hereditary 427 00:20:48,680 --> 00:20:51,080 Speaker 2: in your system, that means if you carry that they 428 00:20:51,160 --> 00:20:53,719 Speaker 2: might say absolutely not, We're not going to ensure you 429 00:20:53,840 --> 00:20:56,879 Speaker 2: at all for breast cancer. However, there are other policies 430 00:20:56,960 --> 00:20:59,960 Speaker 2: that might consider that. So I think it's not necessary 431 00:21:00,200 --> 00:21:02,919 Speaker 2: about which insurance policy should I pick, but more one 432 00:21:02,960 --> 00:21:05,840 Speaker 2: of my personal circumstances that genuinely need to be taken 433 00:21:05,880 --> 00:21:10,400 Speaker 2: into consideration here, because for me, I'm in my thirties. 434 00:21:10,440 --> 00:21:12,600 Speaker 2: I've spoken about this honestly and openly. At some point, 435 00:21:12,640 --> 00:21:15,360 Speaker 2: I would love to have kids. I want my reproductive 436 00:21:15,400 --> 00:21:17,600 Speaker 2: system to be insured. I want to make sure that 437 00:21:17,640 --> 00:21:20,720 Speaker 2: I'm okay in those circumstances. No, it doesn't pay for 438 00:21:20,800 --> 00:21:22,760 Speaker 2: IVF and stuff like that, because I know that question 439 00:21:22,840 --> 00:21:26,480 Speaker 2: is coming. However, what if something goes dramatically wrong during childbirth? 440 00:21:26,880 --> 00:21:29,200 Speaker 2: Am I covered for that? Or am I not? Because 441 00:21:29,240 --> 00:21:32,280 Speaker 2: there are some policies that don't cover for that because technically, 442 00:21:32,600 --> 00:21:35,199 Speaker 2: if you're giving birth, you're on maternity leave, and if 443 00:21:35,240 --> 00:21:37,000 Speaker 2: you're not at work you're not covered. 444 00:21:37,320 --> 00:21:38,240 Speaker 4: Oh what the devil. 445 00:21:38,359 --> 00:21:41,080 Speaker 2: So from my perspective, the best possible thing you can 446 00:21:41,119 --> 00:21:43,480 Speaker 2: do when sorting out your insurances is actually get some 447 00:21:43,560 --> 00:21:46,199 Speaker 2: advice and put yourself in the best possible position. 448 00:21:46,520 --> 00:21:50,119 Speaker 4: Perfect great advice before the break on the other side, 449 00:21:50,119 --> 00:21:52,880 Speaker 4: we'll be chatting health insurance. We'll be chatting about general 450 00:21:52,920 --> 00:21:55,880 Speaker 4: insurance questions. We'll were talking about life insurance. We're gonna 451 00:21:55,920 --> 00:22:03,040 Speaker 4: do it all sexy, stick around, straight back into it, 452 00:22:03,160 --> 00:22:06,840 Speaker 4: Victoria Divine. We're going to start with some general insurance questions, 453 00:22:06,840 --> 00:22:09,879 Speaker 4: which I'm quite excited about. The first one that comes 454 00:22:10,000 --> 00:22:13,840 Speaker 4: from Hannah in your opinion be do you think people 455 00:22:13,880 --> 00:22:14,920 Speaker 4: are over insured? 456 00:22:15,440 --> 00:22:19,639 Speaker 2: No such thing as being overinsured or over educated? Is 457 00:22:19,640 --> 00:22:22,080 Speaker 2: that the from Oscar wild or did I just make that? 458 00:22:22,280 --> 00:22:24,879 Speaker 2: I mean I've not heard it. Actually, Georgia King, I 459 00:22:24,880 --> 00:22:27,760 Speaker 2: think we're wildly underinsured. And I don't think we are. 460 00:22:27,840 --> 00:22:30,840 Speaker 2: I know we are because Australia is the most underinsured 461 00:22:30,920 --> 00:22:34,360 Speaker 2: country in the entire world, or the first world country 462 00:22:34,400 --> 00:22:37,320 Speaker 2: in the entire world, and that is not a good thing. 463 00:22:37,440 --> 00:22:39,560 Speaker 2: But I mean it's a trusting thing, right. We discussed 464 00:22:39,560 --> 00:22:42,080 Speaker 2: this in our Travel Insurance podcast, which was a really 465 00:22:42,119 --> 00:22:44,320 Speaker 2: good one, where I explained that all of us as 466 00:22:44,359 --> 00:22:47,200 Speaker 2: Australians are just so trusting that we just don't see 467 00:22:47,200 --> 00:22:49,240 Speaker 2: it as a priority. We're like, oh, nohing's gonna happen, 468 00:22:49,280 --> 00:22:51,520 Speaker 2: It's fine, or I'll just move back in with mum 469 00:22:51,560 --> 00:22:54,399 Speaker 2: and dad if something happens or huh, I'll just go 470 00:22:54,480 --> 00:22:56,840 Speaker 2: into Centlink. And I mean, do you know what, there 471 00:22:56,840 --> 00:23:00,520 Speaker 2: are some circumstances where you might do the pros and cons, 472 00:23:00,720 --> 00:23:03,160 Speaker 2: and with your income, it might actually be less than 473 00:23:03,160 --> 00:23:05,719 Speaker 2: what Centerlink is. So if you can't work, a disability 474 00:23:05,760 --> 00:23:09,000 Speaker 2: pension might actually be your best port of call. But 475 00:23:09,400 --> 00:23:11,960 Speaker 2: that's a circumstance. You actually need to do the maths 476 00:23:12,000 --> 00:23:14,040 Speaker 2: on and work out whether that works for you or not. 477 00:23:14,359 --> 00:23:16,560 Speaker 2: But no, I don't think people are overinsured. I think 478 00:23:16,600 --> 00:23:21,280 Speaker 2: they're underinsured. However, I think that we prioritize the wrong 479 00:23:21,440 --> 00:23:24,560 Speaker 2: types of insurance. Yeah, we so likely to take out 480 00:23:24,640 --> 00:23:27,520 Speaker 2: additional iPhone insurance or like, I went and bought new 481 00:23:27,560 --> 00:23:29,560 Speaker 2: headphones the other day, and I really wanted some air 482 00:23:29,600 --> 00:23:32,879 Speaker 2: pods because I've been using like fake air pods until now, 483 00:23:32,960 --> 00:23:36,520 Speaker 2: which are terrible. The quality is insane, Like, oh my gosh, 484 00:23:36,840 --> 00:23:39,480 Speaker 2: it's insane that twelve dollars eBay headphones are not nearly 485 00:23:39,480 --> 00:23:41,800 Speaker 2: as good as the two hundred and fifty dollars AirPods 486 00:23:41,800 --> 00:23:45,119 Speaker 2: that I purchased. But I splurged, right, and a checkout, 487 00:23:45,160 --> 00:23:47,440 Speaker 2: they're like, would you like to extend Apple? Care insurance 488 00:23:47,480 --> 00:23:49,280 Speaker 2: for another two years for like this amount of money, 489 00:23:49,280 --> 00:23:52,080 Speaker 2: and I was like, no, I would prefer to spend 490 00:23:52,119 --> 00:23:54,680 Speaker 2: I think it was like sixty nine dollars or something, 491 00:23:55,080 --> 00:23:58,560 Speaker 2: whereas I'd prefer to spend that on a trauma policy 492 00:23:58,760 --> 00:24:01,399 Speaker 2: or on something that protects It's me. I don't need 493 00:24:01,440 --> 00:24:03,679 Speaker 2: to protect my headphones. And I totally get if other 494 00:24:03,720 --> 00:24:05,560 Speaker 2: people see the value in that, and like you do 495 00:24:05,680 --> 00:24:09,200 Speaker 2: you However, I just think that we prioritize the wrong things, 496 00:24:09,200 --> 00:24:11,440 Speaker 2: Like it doesn't make sense to me that someone will 497 00:24:11,480 --> 00:24:14,479 Speaker 2: go and insure their air pods and not insure their person. 498 00:24:14,680 --> 00:24:17,280 Speaker 4: Well that's where it gets confusing, though, isn't it, Because 499 00:24:17,640 --> 00:24:20,800 Speaker 4: there are gimmicky insurances out there that make it really 500 00:24:20,840 --> 00:24:21,760 Speaker 4: confusing because. 501 00:24:21,560 --> 00:24:23,800 Speaker 2: You're like, will ensure anything you can, and you. 502 00:24:23,800 --> 00:24:26,080 Speaker 4: Can, and you can kind of conflate that and think 503 00:24:26,119 --> 00:24:29,560 Speaker 4: that it's equal to income insurance when it's when it's 504 00:24:29,560 --> 00:24:31,840 Speaker 4: a little different and you don't need it, which leads 505 00:24:31,880 --> 00:24:34,760 Speaker 4: me v to our next question, which comes from Jess. 506 00:24:35,000 --> 00:24:37,600 Speaker 4: How do you know if you're being overcharged or paying 507 00:24:37,640 --> 00:24:40,760 Speaker 4: for things you don't need just in general when it 508 00:24:40,800 --> 00:24:41,640 Speaker 4: comes to insurance. 509 00:24:41,720 --> 00:24:44,920 Speaker 2: When it comes to insurance, So that's where you want 510 00:24:44,920 --> 00:24:48,640 Speaker 2: to understand exactly what you're getting to be blunt. Insurance 511 00:24:48,680 --> 00:24:51,719 Speaker 2: can be really expensive, and it's a bit like health insurance, right. 512 00:24:51,760 --> 00:24:53,439 Speaker 2: The more you pay, the more you get or the 513 00:24:53,480 --> 00:24:57,080 Speaker 2: more access you have to different things and opportunities. I 514 00:24:57,119 --> 00:25:01,200 Speaker 2: think it's just about being educated and understanding exactly what 515 00:25:01,280 --> 00:25:03,240 Speaker 2: your policy is and what it's made up of, and 516 00:25:03,320 --> 00:25:05,960 Speaker 2: understanding what the market's doing, and talking to your advisor 517 00:25:06,000 --> 00:25:09,040 Speaker 2: and saying should I do this or shouldn't I do this? However, 518 00:25:09,160 --> 00:25:10,800 Speaker 2: you know, if you're in a position, gee, where you've 519 00:25:10,800 --> 00:25:13,280 Speaker 2: had hysterectomy for some reason, I wouldn't want to be 520 00:25:13,280 --> 00:25:15,800 Speaker 2: paying for reproductive health if I had gone through that. 521 00:25:16,160 --> 00:25:17,679 Speaker 2: I think it's just important to have a look at 522 00:25:17,760 --> 00:25:21,040 Speaker 2: something and understand what benefits you and what doesn't. Because 523 00:25:21,119 --> 00:25:24,160 Speaker 2: hysterically g I have seen people come into our office 524 00:25:24,400 --> 00:25:25,800 Speaker 2: sit down and I'm like, oh my gosh, what have 525 00:25:25,840 --> 00:25:28,320 Speaker 2: you got? And they've got like these epic policies. This 526 00:25:28,520 --> 00:25:31,320 Speaker 2: was a fair few years ago, and it wasn't my client. 527 00:25:31,359 --> 00:25:34,399 Speaker 2: It was a financial advisor in my officer's client, and 528 00:25:34,440 --> 00:25:38,920 Speaker 2: he reviewed these client's insurances and he had maternity cover 529 00:25:39,480 --> 00:25:42,560 Speaker 2: and like full like childbirth cover and all of this 530 00:25:42,640 --> 00:25:45,320 Speaker 2: other stuff, and we were like, buts mail, Like this 531 00:25:45,480 --> 00:25:50,000 Speaker 2: makes no sense, and like, obviously I'm not being insensitive here. 532 00:25:50,080 --> 00:25:52,280 Speaker 2: We knew for sure that this client was mail. It 533 00:25:52,400 --> 00:25:54,119 Speaker 2: wasn't a question of like, oh my gosh, is there 534 00:25:54,240 --> 00:25:56,240 Speaker 2: something that you know we're not privy to, because you're 535 00:25:56,320 --> 00:25:59,119 Speaker 2: very sensitive to those things. However, we're like, no, this 536 00:25:59,200 --> 00:26:02,119 Speaker 2: bloke does not need this, and called the insurance company. 537 00:26:02,160 --> 00:26:05,360 Speaker 2: They're like, oh, yeah, it was default, Like, we can 538 00:26:05,400 --> 00:26:07,760 Speaker 2: remove it. You're right, it would reduce his premiums and 539 00:26:07,760 --> 00:26:10,919 Speaker 2: we're like, yeah, do that, but also please refund us 540 00:26:11,000 --> 00:26:13,480 Speaker 2: for the entire time he has had that, because he 541 00:26:13,560 --> 00:26:16,480 Speaker 2: shouldn't have been paying for that, and you guys know that. 542 00:26:17,040 --> 00:26:19,280 Speaker 2: So it was kind of funny at the time, but 543 00:26:19,359 --> 00:26:22,240 Speaker 2: also really cheeky. So I think it's just about understanding 544 00:26:22,520 --> 00:26:25,199 Speaker 2: what you're getting, having a chat to your advisor, and 545 00:26:25,240 --> 00:26:28,160 Speaker 2: then like, what's the harm in giving your insurance company 546 00:26:28,200 --> 00:26:31,160 Speaker 2: a call and saying, hey, guys, just got my premium 547 00:26:31,200 --> 00:26:33,399 Speaker 2: statement in the mail. Any chance you can do a 548 00:26:33,400 --> 00:26:35,480 Speaker 2: better deal than that? Otherwise I might look elsewhere and 549 00:26:35,520 --> 00:26:37,760 Speaker 2: they might say yes or no or explain to you 550 00:26:37,880 --> 00:26:40,760 Speaker 2: why your premium is such. But I think it's important 551 00:26:40,760 --> 00:26:44,160 Speaker 2: to always ask questions, but always be educated as well. 552 00:26:44,600 --> 00:26:48,280 Speaker 2: But also on that g be really careful about changing 553 00:26:48,320 --> 00:26:53,040 Speaker 2: your insurance company, because, for example, I could today go 554 00:26:53,160 --> 00:26:56,880 Speaker 2: and get rid of my income protection policy and go 555 00:26:56,920 --> 00:26:59,560 Speaker 2: get a cheaper one. It's a no brainer when it 556 00:26:59,560 --> 00:27:03,320 Speaker 2: comes to the semantics of like what's cheaper. Right, However, 557 00:27:03,840 --> 00:27:07,480 Speaker 2: I have an insurance policy that has no exclusions, has 558 00:27:07,560 --> 00:27:10,280 Speaker 2: a whole heap of benefits for me personally. You know, 559 00:27:10,359 --> 00:27:13,160 Speaker 2: it was written a long time ago, so I'm actually 560 00:27:13,480 --> 00:27:16,640 Speaker 2: completely covered. If I went and got a new insurance 561 00:27:16,680 --> 00:27:19,199 Speaker 2: policy today, there would be exclusions, there would be a 562 00:27:19,200 --> 00:27:21,240 Speaker 2: whole heap of things that, to be honest, is not 563 00:27:21,520 --> 00:27:23,800 Speaker 2: worth changing. Like I'm not going to go get a 564 00:27:23,880 --> 00:27:27,240 Speaker 2: cheaper policy because with insurance, it's actually about the quality 565 00:27:27,240 --> 00:27:30,480 Speaker 2: of the insurance, not necessarily getting the cheapest cover, because 566 00:27:30,480 --> 00:27:32,440 Speaker 2: that's not going to put you in the best possible position. 567 00:27:32,760 --> 00:27:34,920 Speaker 2: So would I go out and get the cheaper policy. 568 00:27:35,320 --> 00:27:35,399 Speaker 1: No. 569 00:27:35,880 --> 00:27:37,960 Speaker 2: Would I try and negotiate a better rate on my 570 00:27:38,040 --> 00:27:41,680 Speaker 2: existing policy. Absolutely. So I'm in that tricky position where 571 00:27:41,680 --> 00:27:43,520 Speaker 2: I don't want to change mine because I do have 572 00:27:43,560 --> 00:27:47,320 Speaker 2: a financial advisor written policy that is in my best interests. However, 573 00:27:47,359 --> 00:27:50,080 Speaker 2: that's where you want to have those conversations around is 574 00:27:50,119 --> 00:27:52,800 Speaker 2: this what's best for me? Because we all know that, mate, 575 00:27:52,800 --> 00:27:54,920 Speaker 2: that's like, oh, I don't need insurance. I just canceled it, 576 00:27:55,000 --> 00:27:56,600 Speaker 2: like I don't need it in my souper and you're like, 577 00:27:56,640 --> 00:27:58,760 Speaker 2: oh my gosh, like that was such a valuable thing 578 00:27:58,800 --> 00:28:01,840 Speaker 2: to have. And even and if you don't want insurance 579 00:28:02,000 --> 00:28:05,040 Speaker 2: inside super like another recommendation. If you want to save 580 00:28:05,080 --> 00:28:06,840 Speaker 2: some money and you're just not sure about the super, 581 00:28:07,359 --> 00:28:10,159 Speaker 2: lower the amount instead of being covered for half a 582 00:28:10,240 --> 00:28:12,399 Speaker 2: million dollars, the call up and see what's the lost amount. 583 00:28:12,440 --> 00:28:14,639 Speaker 2: I can be insured to keep that policy so that 584 00:28:14,720 --> 00:28:17,040 Speaker 2: I save some money. But also I'm not putting future 585 00:28:17,080 --> 00:28:19,400 Speaker 2: me in a worse off position. So I think it's 586 00:28:19,440 --> 00:28:22,160 Speaker 2: just important to know that you can dial things down 587 00:28:22,200 --> 00:28:23,919 Speaker 2: and then later you can dial them back up, but 588 00:28:23,960 --> 00:28:26,320 Speaker 2: if you cancel them completely, you could find yourself in 589 00:28:26,320 --> 00:28:27,240 Speaker 2: a sticky situation. 590 00:28:27,480 --> 00:28:30,440 Speaker 4: Brilliant V. I feel like I have so many more 591 00:28:30,680 --> 00:28:34,560 Speaker 4: questions to pepper your ways. So I'm making an executive decision. 592 00:28:34,600 --> 00:28:36,159 Speaker 4: Here are we gonna press pause? 593 00:28:36,440 --> 00:28:38,240 Speaker 2: I love, so we can all take. 594 00:28:38,000 --> 00:28:39,840 Speaker 4: In what we've learned today and then we're going to 595 00:28:39,920 --> 00:28:41,520 Speaker 4: do a part two to this episode, so. 596 00:28:41,440 --> 00:28:46,560 Speaker 2: I can that. Yeah, great idea, So let's let's do this. 597 00:28:46,920 --> 00:28:48,560 Speaker 2: And I feel like people could be like, this is 598 00:28:48,560 --> 00:28:51,280 Speaker 2: really dry, V, but like it's important for you to know, right, 599 00:28:52,120 --> 00:28:54,280 Speaker 2: all right, why don't you wrap the boring but important 600 00:28:54,320 --> 00:28:56,400 Speaker 2: stuff and you guys can get on with your day. 601 00:28:56,440 --> 00:28:59,760 Speaker 4: It would be a pleasure already. Guys, please remember that 602 00:28:59,760 --> 00:29:02,240 Speaker 4: the advice shared on She's on the Money is general 603 00:29:02,280 --> 00:29:06,000 Speaker 4: in nature and does not consider your individual circumstances. She's 604 00:29:06,040 --> 00:29:09,120 Speaker 4: on the Money exists purely for educational purposes and should 605 00:29:09,160 --> 00:29:11,280 Speaker 4: not be relied upon to make an investment or a 606 00:29:11,320 --> 00:29:14,880 Speaker 4: financial decision. And we promise Victoria Divine and She's on 607 00:29:14,920 --> 00:29:18,840 Speaker 4: the Money are authorized representatives of in Focused Securities Australia 608 00:29:18,960 --> 00:29:22,160 Speaker 4: Proprietary Limited ABN four seven zero nine seven seven nine 609 00:29:22,160 --> 00:29:25,080 Speaker 4: seven zero four nine AFOSL two three six five two three. 610 00:29:25,240 --> 00:29:29,360 Speaker 2: See You're on Friday, Guys, by Guys,