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Speaker 1: She's on the Money, She's on the Money.

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Speaker 2: Hello, and welcome to Shoes on the Money, the podcast

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Speaker 2: for millennials who want financial freedom. This episode of the

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Speaker 2: show is brought to you by sports Girl and their

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Speaker 2: twenty twenty Be That Girl campaign, which we will be

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Speaker 2: chatting about shortly as it features a certain dark headed

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Speaker 2: financial advisor currently sitting across from me. My name is

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Speaker 2: Georgia King, a copywriter and TV assistant whose money smarts

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Speaker 2: could definitely use some improving and it would seem I

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Speaker 2: am in luck as I am as always, joined by

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Speaker 2: millennial money whiz kids slash wonder woman slash Australian sweetheart,

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Speaker 2: Miss Victoria to bye, Georgia King.

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Speaker 3: That was not the script that we had agreed just

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Speaker 3: from with it.

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Speaker 2: So today on the show we are going to be

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Speaker 2: delving into the intricate world of insurances, home, car, travel, income.

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Speaker 2: The list of insurances out there is almost never ending.

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Speaker 2: Today we are talking about the elusive world of personal insurances.

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Speaker 2: Now Victoria tells me there are four different types we

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Speaker 2: are covering in our combo today, Life insurance, TPD, income

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Speaker 2: protection and trauma insurance. And whilst I don't know what

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Speaker 2: any of those are yet we all will by the

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Speaker 2: end of the show, hopefully before we get into the

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Speaker 2: thick of it, Victoria, let's chat money wins and confessions.

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Speaker 2: How did you go this week?

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Speaker 3: Hello, geez, I am so excited that we are covering

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Speaker 3: this topic. Everybody thinks it's going to be really dry

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Speaker 3: that I am including site because it's one of my

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Speaker 3: favorite things to talk about. But before that, I have

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Speaker 3: a money win for you. Okay, this is the season

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Speaker 3: of money wins. This week, I attended the nbl MVP

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Speaker 3: And for those of you who don't know, because I

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Speaker 3: didn't know before I was invited to it by Morgan,

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Speaker 3: that's like the brown Low version of Basketall Basketball's ninety nine.

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Speaker 3: It's so so fancy, stunning, amazing. Everybody's dresses we next level.

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Speaker 3: So that meant I had to step my game up

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Speaker 3: a little bit. And it turns out I don't have

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Speaker 3: a wardrobe full of ball gown What do you mean?

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Speaker 3: I know, right, it's just completely despicable of me. But

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Speaker 3: what I did was go down to my friends at

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Speaker 3: her wardrobe and they organized a really beautiful dress for

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Speaker 3: me to wear for one night that I could give

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Speaker 3: back the next day and it meant that I got

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Speaker 3: to wear an eight hundred dollars dress for a night,

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Speaker 3: but definitely not part with eight hundred dollars. And I

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Speaker 3: feel like that's a massive money and for the environment

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Speaker 3: and pretty much for everybody that was probably attending that

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Speaker 3: of exactly. Yeah, like, let's be honest, no, but I

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Speaker 3: was really stoked about that, and I just feel like

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Speaker 3: I didn't need a ball gown sitting in my wardrobe

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Speaker 3: that I wasn't going to.

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Speaker 2: Probably won't wear it again, maybe making podcast records, I

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Speaker 2: don't know.

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Speaker 3: Yeah, it just made me feel a little bit less

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Speaker 3: guilty about the whole absolutely one dress wear kind of thing. Yeah, anyway,

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Speaker 3: do you have a money win or a money confession?

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Speaker 2: I have a confession this week.

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Speaker 3: I can tell from the look on your face.

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Speaker 2: Yeah, I'm pale and what I'm feeling sick about it.

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Speaker 3: You're pretty tam though, like you just look a bit down.

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Speaker 2: Sorry, Okay, let me explain it to you. I'll paint

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Speaker 2: the picture. So is that a trendy bar in Carlton

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Speaker 2: with my best friend loose? How are you loose? Good

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Speaker 2: to see? And I ordered a beer instead of a

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Speaker 2: cocktail because it's usually half the price. I didn't want

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Speaker 2: to spend twenty dollars. I was trying to trying to

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Speaker 2: create a money win to make you proud, Victoria.

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Speaker 3: I'm very impressed. I feel like I don't really like beer,

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Speaker 3: so that never works.

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Speaker 2: Yeah, yeah, it works for drink like a fish. Anyway,

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Speaker 2: I ordered my beer and the lady goes, that'll be

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Speaker 2: eighteen dollars please.

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Speaker 3: Did she charge you twice?

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Speaker 2: No? Well, I don't know what. She made a horrible mistake,

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Speaker 2: but I was too much of a pushover to question it,

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Speaker 2: so I know, I just tapped and I went. But

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Speaker 2: the kicker is that the guy from Client Liaison, which

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Speaker 2: is a really trendy Australian bound guys.

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Speaker 3: He was standing a shout out from YouTube.

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Speaker 2: He gets a shout out hunts and guy, so he

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Speaker 2: was standing behind me and I didn't want to. I

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Speaker 2: didn't want him to think that I was tight. So yeah,

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Speaker 2: I just paid it and ran.

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Speaker 3: And now he just think buy really expensive hair.

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Speaker 2: He thinks I'm cool. That's not cool, is it?

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Speaker 3: That's really not that cool? But also, of all, people

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Speaker 3: do not stand up when they're odged more than they

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Speaker 3: should have been. I just feel like it should have

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Speaker 3: been you.

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Speaker 2: Yeah, I know, I GISs. Anyway, let's move right along

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Speaker 2: to the Facebook community, which was impressive as always this week, Victoria,

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Speaker 2: did anyone stand out to you in particular?

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Speaker 3: Yes, they did. So She's not my friend, but I

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Speaker 3: totally feel like I was at her birthday. Okay the

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Speaker 3: post she put on Facebook this week, So this is

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Speaker 3: a post from Mary, and she did this massive post,

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Speaker 3: including really gorgeous photos that she had taken of her

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Speaker 3: birthday on a budget. She said that she had celebrated

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Speaker 3: her twenty first birthday at home and wanted to share

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Speaker 3: some of her money wins to help save some serious

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Speaker 3: dollars when it came to birthdays. And she literally put

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Speaker 3: down this list of all these things she did for

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Speaker 3: herself little hacks, yeah, instead of you know, going and

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Speaker 3: sourcing them out right. So she said that she did

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Speaker 3: a DIY cake that cost her fifteen dollars and looked

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Speaker 3: delicious instead of like two instead of two hundred dollars.

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Speaker 3: She did a DIY grazing table that cost her like

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Speaker 3: one hundred and thirty dollars, which is completely understandable because

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Speaker 3: cheese can be so expensive really so though, but professional

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Speaker 3: grazing boards are often like six or seven hundred dollars,

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Speaker 3: and she did her own balloon arch that she bought

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Speaker 3: online and put together herself. And I just feel like

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Speaker 3: that's really savvy and I wanted to talk about it.

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Speaker 2: Absolutely well done, Mary. Mine is also from a Mary Mary.

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Speaker 3: Mary quite contrary? Is that what's going on?

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Speaker 2: I think it could be. Mary has written my first

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Speaker 2: official money win. I had an appointment booked with my

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Speaker 2: regular hair salon to the end of March, but I

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Speaker 2: realized today how desperate my hair was looking and decided

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Speaker 2: I needed a trim asap. She usually pays well over

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Speaker 2: two hundred dollars. She then did some research and found

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Speaker 2: a walk in place that's open on Sundays in the

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Speaker 2: middle of a shopping mole in town, which do look

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Speaker 2: quite dodgies sometimes. She's written, She's not that snobby about

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Speaker 2: her hair, and she'd always had a bit of an

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Speaker 2: icky feeling about those kind of express haircut places. But

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Speaker 2: she was desperate, so she bit the bullet, went in.

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Speaker 2: She walked out half an hour later with the exact

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Speaker 2: result she wanted. She got a wash and a cut.

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Speaker 2: The thirty five dollars she walked out with half damp hair,

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Speaker 2: and it wasn't exactly an experience like her usual Sullon provides,

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Speaker 2: but she was willing to forego her head massage, the

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Speaker 2: good chat, and complimentary coffee for the sake of a

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Speaker 2: bargain and great service.

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Speaker 3: I rate that, although I feel like I really need

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Speaker 3: to hold back on this one because I recently found

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Speaker 3: out that my hairdresser listens to my podcast No and

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Speaker 3: I don't know if you guys have listened to season one.

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Speaker 3: That literally season one, episode one. I tell everybody that

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Speaker 3: I did a box die, but I hadn't admitted that

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Speaker 3: to my hairdresser, and she brought it up last time.

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Speaker 3: I was that the hairdresser and she was like, I'm

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Speaker 3: onto you. So this is probably not a great time

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Speaker 3: to let her know that I've been giving myself a

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Speaker 3: true in safety seasons. But let's move on. How about

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Speaker 3: right along?

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Speaker 2: Okay, crew, Now it is time for the main part

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Speaker 2: of the show, Insurance. Now, Initially, when we thought to

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Speaker 2: chat about this topic, I worried it would be bland.

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Speaker 3: I'll admit it.

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Speaker 2: Now, having done a little bit of research, I confirm

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Speaker 2: this topic is at the very least moderately interesting. Well,

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Speaker 2: I'm down there are so many insurances out there, from

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Speaker 2: health and cut to income and life insurances. Victoria, can

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Speaker 2: you please kick us off with a little chat about

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Speaker 2: what insurances actually are and which ones are out there

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Speaker 2: that we need to be considering.

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Speaker 3: Okay, so let's start this chat off by really defining

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Speaker 3: what we're going to talk about here. So, as you mentioned,

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Speaker 3: there are so many insurances out there, from car insurance

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Speaker 3: to life insurance and then back to your Apple watch insurance,

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Speaker 3: like if you can name it, you can insure it

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Speaker 3: pretty much these days. So I think it's important to

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Speaker 3: just frame this conversation and say, I'm talking about personal

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Speaker 3: insurances that I talk about with my clients every day. So,

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Speaker 3: as you mentioned at the start of this show, even

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Speaker 3: though you didn't really know what you were talking about,

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Speaker 3: which was impressive, you said TBD and then like a

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Speaker 3: side glance, I don't know what we are talking about

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Speaker 3: income protection, We are talking about total and permanent disability insurance,

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Speaker 3: we are talking about trauma insurance, and we're also talking

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Speaker 3: about life insurance. So we're going to cover those four

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Speaker 3: things this week because those are the things that you

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Speaker 3: you need to put in place, that you need to

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Speaker 3: be aware of to make sure that you can sustain

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Speaker 3: your lifestyle should something happen to you, regardless of what

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Speaker 3: that is. So if we're going to start talking about

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Speaker 3: personal insurances, I think we need to start with the

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Speaker 3: definition and say, what on earth is personal insurance? So

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Speaker 3: personal insurance is a type of cover, and there are

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Speaker 3: a number of different styles that we're going to talk about.

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Speaker 3: It's a type of cover that provides financial security to

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Speaker 3: you and your family in the event of serious injury

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Speaker 3: or illness, or loss of ability to earn money, or

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Speaker 3: the total and permanent disability of you, or even death.

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Speaker 3: So it covers a very very large range of things

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Speaker 3: and we can talk about them. But people often get

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Speaker 3: personal insurances to make sure that they are able to

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Speaker 3: maintain their lifestyle with the financial support that they need

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Speaker 3: to still achieve their financial lifestyle goals, but also their

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Speaker 3: bigger savings goals and to cover any outstanding debts and

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Speaker 3: the everyday expenses that they would have. So when we

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Speaker 3: start talking about these things, I find it really interesting

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Speaker 3: because so many people don't have the right insurances or

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Speaker 3: don't seem to make it a priority for them. And

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Speaker 3: I don't know why guilty exactly, but it's one of

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Speaker 3: those things where Australia is actually the most underinsured country

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Speaker 3: in the world, given we are a first world nation,

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Speaker 3: it is something that we are actually severely lacking and

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Speaker 3: need more education in. And you look at other countries

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Speaker 3: around the world where you know, you look at South

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Speaker 3: Africa and I'm pretty sure the statistic is that eighty

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Speaker 3: percent of their population have income protection, whereas not even

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Speaker 3: half of the Australian population can say that they have that,

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Speaker 3: and if they do, most of them have it as

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Speaker 3: a default in their superannuation, which has a whole other

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Speaker 3: bag of issues associated with it if you don't know

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Speaker 3: what you're looking out.

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Speaker 2: For, Okay, So, which insurances are integral, which ones can

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Speaker 2: we live without? And which ones do we need or

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Speaker 2: I'm kind of getting the sense that we might need

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Speaker 2: all of them right.

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Speaker 3: So complex, and I think it's a really interesting question,

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Speaker 3: and one I can't legally answer for you on the

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Speaker 3: podcast because that would constitute personal advice, which I clearly

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Speaker 3: wouldn't give you. But it's one of those things where

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Speaker 3: it actually depends on the life stage that you are at,

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Speaker 3: depending on what insurances you uptake.

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Speaker 2: So ge you are young, you are wild, I have

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Speaker 2: no dependence.

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Speaker 3: No, you don't have any dependence that you're aware of,

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Speaker 3: and you also don't have any massive debts that I'm

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Speaker 3: aware of. Now as you're now self elected financial advisor,

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Speaker 3: when we start talking about you know which ones we need.

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Speaker 3: If you are young and wild and free, you probably

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Speaker 3: don't need all of that much insurance. We do need

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Speaker 3: to start talking about what insurances you need to have

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Speaker 3: in place as well, because things like exclusions start coming

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Speaker 3: into the conversation where you know, you might get a

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Speaker 3: little bit older and you twist you back at work

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Speaker 3: and throw it out and you know accidentally slip a disc.

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Speaker 3: In that case, an insurer is probably not going to

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Speaker 3: want to ensure your back because it will be excluded

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Speaker 3: from the cover. So often we're talking to clients about

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Speaker 3: making sure that they get insurance as young while they

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Speaker 3: are healthy and fit and don't have any things on

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Speaker 3: their medical history that could be a massive exclusion. So

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Speaker 3: when we talk about that, then you move into a

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Speaker 3: different stage of life. Gene, say you've saved up and

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Speaker 3: you have bought your first home, you are now in

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Speaker 3: a lot of debt that if you unfortunately, and let's

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Speaker 3: talk about yesterday, because I never like to talk about

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Speaker 3: personal insurances happening tomorrow. So if something happened to you yesterday,

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Speaker 3: your parents or your next of kin would be lumped

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Speaker 3: with that debt. So life insurance is often about extinguishing

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Speaker 3: that debt and making sure that the people that you

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Speaker 3: are leaving behind are set up for the success that

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Speaker 3: they need from you. And while you're young and don't

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Speaker 3: have dependence, it's often just about extinguishing debt. If we

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Speaker 3: then move forward into our lives again, we get to

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Speaker 3: a stage where we have, you know, a couple of dependence.

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Speaker 3: We have a mortgage, maybe you've looked at an investment

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Speaker 3: property and things are getting a little bit wild financially.

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Speaker 3: If you're in that position, then we do need to

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Speaker 3: look at more comprehensive insurances and look at having a

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Speaker 3: fulle of things, but also increasing those levels of insurance.

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Speaker 3: So say you bought your first home g for six

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Speaker 3: hundred thousand dollars, maybe that's what your life insurance could

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Speaker 3: potentially have been at because you are in a position

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Speaker 3: where that's the only debt that needs to be extinguished,

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Speaker 3: But your life insurance is going to jump significantly once

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Speaker 3: you need to be looking after a couple of kids,

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Speaker 3: a dog, your wife, and then also extinguishing debt on properties.

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Speaker 3: And then that comes back to personal values again because

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Speaker 3: I don't know what you want to leave behind. I

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Speaker 3: don't know what legacy you're planning on leaving. And that's

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Speaker 3: where having a really good chat with a financial advisor

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Speaker 3: that can help understand your situation comes into play, because

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Speaker 3: they can go all right, well, what does this actually

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Speaker 3: look like? Because there are so many variables that you

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Speaker 3: need to take into place, so it is really complex

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Speaker 3: and I know a lot of people that are listening

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Speaker 3: are going to go, oh my gosh, Victoria, this is

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Speaker 3: so not valid for me, But it totally is because

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Speaker 3: once you reached that point in your life, I would

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Speaker 3: love you to already know the things that you need

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Speaker 3: to be looking out for.

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Speaker 2: So, Victoria, you mentioned income protection was your FAE sounds

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Speaker 2: ribboning to me.

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Speaker 3: It's wild watch out.

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Speaker 2: Can you please tell us a little bit more about them?

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Speaker 3: So income protection is quite straightforward. It protects your income.

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Speaker 3: I know, wild it would have thought, given the relative

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Speaker 3: importance of your income, you actually want to know that

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Speaker 3: if you ever need to make a claim, you will

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Speaker 3: actually get paid out. So Gee, you mentioned to me

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Speaker 3: before in passing on the pod that you had car insurance,

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Speaker 3: but you weren't sure what your personal insurances were. Is

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Speaker 3: that correct? Yeah, So what you're telling me is you've

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Speaker 3: insured your car, which does not produce any income for you. Yeah.

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Speaker 3: If it broke down, you would then use your income

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Speaker 3: to purchase a new one or fix it. Right, Okay,

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Speaker 3: Well what happens if you're no longer able to produce income?

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Speaker 3: Is your income going to buy you in your car?

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Speaker 3: Is it going to fix your broken car?

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Speaker 2: No, I'll be poor and I won't have an income.

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Speaker 3: No whoe with me. But I think it's really important

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Speaker 3: to just go all right. So we place so much

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Speaker 3: value on insuring our cars, ensuring our engagement rings, insuring

300
00:13:57,200 --> 00:14:01,200
Speaker 3: our houses, ensuring so much stuff. No one is placing

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00:14:01,320 --> 00:14:04,760
Speaker 3: a priority on ensuring their income, which is actually the

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00:14:04,880 --> 00:14:08,600
Speaker 3: thing that helps us sustain our lifestyle. There's a lot

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00:14:08,640 --> 00:14:11,319
Speaker 3: of hearsay about you know, what's good about income protection

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Speaker 3: and what's bad about income protection. Often there is a

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00:14:14,480 --> 00:14:17,760
Speaker 3: little bit of trouble when your income protection is sitting

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Speaker 3: inside your superannuation, as the policy definitions are not as

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00:14:22,640 --> 00:14:26,600
Speaker 3: broad and not as inclusive In comparison to outside of

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00:14:26,640 --> 00:14:30,360
Speaker 3: superanuation claims. And when I talk about that, what I'm

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Speaker 3: talking about is when I say inside superannuation, it means

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Speaker 3: that that policy is owned by your super fund and

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Speaker 3: the policy is paid for by the money you contribute

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Speaker 3: to super, so it doesn't impact your weekly cash flow

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Speaker 3: right right, And outside of superranuation is a policy that

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Speaker 3: you personally go and establish and you pay for out

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Speaker 3: of your income that comes into your bank account each

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Speaker 3: and every single month.

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Speaker 2: Dumb question.

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Speaker 3: Can you have both? You can have both, and sometimes

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Speaker 3: people mix it so sometimes will have some of their

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Speaker 3: policy inside super some of their policy outside Super. I personally,

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Speaker 3: and I feel like this is going to be a

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Speaker 3: really good way of explaining it is to just be

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Speaker 3: really honest and open about the insurances that I have.

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Speaker 3: And I have all four of these insurances because I'm

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Speaker 3: a financial advisor and I really really see the value

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Speaker 3: in it. But I have all four. But I hold

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00:15:19,360 --> 00:15:23,880
Speaker 3: my life and TPD insurance inside superannuation, and I hold

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Speaker 3: my income protection and my trauma insurance outside of superanuation.

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Speaker 3: But we can go through that. So when I talk

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Speaker 3: about income protection, it's really important to make sure that

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Speaker 3: we understand the policy that we are signing up for.

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Speaker 3: So there are a couple of things that I want

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Speaker 3: people to take into consideration, and they are features that

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00:15:43,200 --> 00:15:47,080
Speaker 3: you can often only get outside of superanuation. And these

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00:15:47,080 --> 00:15:49,280
Speaker 3: are why I am, I guess so passionate about it,

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00:15:49,320 --> 00:15:53,160
Speaker 3: but also have it personally outside of superanuation. Is I

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00:15:53,200 --> 00:15:57,080
Speaker 3: can guarantee my income with income protection outside of super

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Speaker 3: So I can sit down with a financial advisor and

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00:16:00,760 --> 00:16:03,720
Speaker 3: prove to them my income by providing my tax return,

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Speaker 3: give that to the insurance company, and they go, no problems, Victoria,

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Speaker 3: you earn x amount in that year, so if you

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Speaker 3: ever need to make a claim, we're not going to

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00:16:12,000 --> 00:16:14,600
Speaker 3: make you prove your income. Too often do I see

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Speaker 3: instances where people go to claim income protection and they

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00:16:18,800 --> 00:16:21,160
Speaker 3: think that they are really well covered because they go, Hey, Victoria,

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Speaker 3: I own sixty thousand dollars a year, but I'm paying

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00:16:23,600 --> 00:16:26,160
Speaker 3: for one hundred thousand dollars income protection policy, so I

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00:16:26,200 --> 00:16:28,920
Speaker 3: am fine. But when it comes to point of claim,

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Speaker 3: that insurance company says, Okay, no problems, could you please

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00:16:32,000 --> 00:16:34,880
Speaker 3: prove your income and they will only pay up to

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00:16:34,960 --> 00:16:38,200
Speaker 3: seventy five percent of your actual income, not of the

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00:16:38,240 --> 00:16:43,120
Speaker 3: policy you've been paying for, so that's really important. If

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Speaker 3: you're guaranteeing income on income protection, though, you are also

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00:16:46,880 --> 00:16:50,040
Speaker 3: able to lock it in. So if you are proving

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00:16:50,280 --> 00:16:52,920
Speaker 3: with your tax return your income, but then you go

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00:16:53,000 --> 00:16:55,960
Speaker 3: to a lower paying job, more a part time paying job,

357
00:16:56,160 --> 00:16:59,000
Speaker 3: you're actually still in most cases you'd need to check

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00:16:59,000 --> 00:17:02,960
Speaker 3: a PDS disclosure statement, you are actually still able to

359
00:17:03,000 --> 00:17:06,080
Speaker 3: claim on the highest level that you financially endorsed. So

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00:17:06,240 --> 00:17:08,520
Speaker 3: I think that's a pretty good feature, especially because I'm

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Speaker 3: talking to a group of women who often will go

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00:17:11,200 --> 00:17:14,600
Speaker 3: through different life stages and take different roles, and it's

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00:17:14,640 --> 00:17:17,280
Speaker 3: often a priority, or is a priority for me to

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00:17:17,400 --> 00:17:20,520
Speaker 3: lock in my income at the highest possible point and

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00:17:20,600 --> 00:17:23,640
Speaker 3: have it completely financially underwritten so that it can never

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00:17:23,680 --> 00:17:26,560
Speaker 3: be questioned again, even if I go and start working

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00:17:26,640 --> 00:17:28,800
Speaker 3: for a job that pays me a quarter of my income.

368
00:17:29,400 --> 00:17:32,439
Speaker 3: The second is medical history, and for me, having my

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00:17:32,520 --> 00:17:37,840
Speaker 3: medical history and any exclusions outlined upfront is essential. I

370
00:17:37,880 --> 00:17:40,440
Speaker 3: don't want to get stung with, you know, going through

371
00:17:40,600 --> 00:17:42,800
Speaker 3: probably one of the most traumatic periods in my life

372
00:17:42,800 --> 00:17:46,360
Speaker 3: should this happen, and then find out that because it's

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00:17:46,400 --> 00:17:50,000
Speaker 3: a gene in my parents' lineage, I'm not covered for it.

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Speaker 3: And I've seen that before where I've had not clients,

375
00:17:53,480 --> 00:17:56,240
Speaker 3: but I have heard stories and met people where they

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00:17:56,320 --> 00:17:59,960
Speaker 3: have unfortunately been diagnosed with breast cancer and said that's

377
00:18:00,000 --> 00:18:02,600
Speaker 3: it's okay, I'm going to go and claim on my insurance.

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00:18:03,080 --> 00:18:05,439
Speaker 3: And when they go to do that, their insurance is sorry,

379
00:18:05,480 --> 00:18:07,520
Speaker 3: but that's a her editory thing for you. We're not

380
00:18:07,600 --> 00:18:11,040
Speaker 3: going to be covering really yeah, which is heartbreaking. And

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Speaker 3: I think that that's the issue here, and this is

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Speaker 3: where a lot of insurance companies get painted in really

383
00:18:16,560 --> 00:18:20,160
Speaker 3: bad lights. They're actually just following their product disclosure statements

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00:18:20,200 --> 00:18:22,240
Speaker 3: and the terms and conditions that were agreed upon by

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00:18:22,280 --> 00:18:25,480
Speaker 3: the person to take that. You're the insurance exactly, and

386
00:18:25,800 --> 00:18:28,200
Speaker 3: you agreed to it, but we didn't put enough thought

387
00:18:28,200 --> 00:18:31,359
Speaker 3: and time and effort into really truly understanding what that

388
00:18:31,480 --> 00:18:34,920
Speaker 3: actually means. And every single product is different, like there

389
00:18:34,960 --> 00:18:36,800
Speaker 3: is no one size fits all. It's not like I

390
00:18:36,800 --> 00:18:38,520
Speaker 3: can put my hand up and say, hey, go and

391
00:18:38,520 --> 00:18:41,359
Speaker 3: get the insurance that I have because that doesn't actually

392
00:18:41,400 --> 00:18:44,240
Speaker 3: fit everybody and it doesn't make a lot of sense

393
00:18:44,320 --> 00:18:47,520
Speaker 3: for a lot of people. So for me, it's about

394
00:18:47,520 --> 00:18:51,640
Speaker 3: making sure that you understand your income, and your insurance

395
00:18:51,640 --> 00:18:55,639
Speaker 3: company understands your income, and they also understand your medical history,

396
00:18:55,720 --> 00:18:58,840
Speaker 3: and you have disclosed everything you need to disclose so

397
00:18:58,920 --> 00:19:01,320
Speaker 3: that there are no surprises the time you need to claim.

398
00:19:01,520 --> 00:19:03,239
Speaker 3: Because at the end of the day, if you are

399
00:19:03,280 --> 00:19:05,440
Speaker 3: in a situation where you need to claim on insurance,

400
00:19:05,440 --> 00:19:08,360
Speaker 3: you're not having a very good time, and this insurance

401
00:19:08,359 --> 00:19:10,879
Speaker 3: should actually make your life easier, not give you more

402
00:19:10,960 --> 00:19:12,880
Speaker 3: hurdles to jump over. So would you.

403
00:19:12,880 --> 00:19:15,960
Speaker 2: Say that someone at the start of their career making

404
00:19:16,040 --> 00:19:20,480
Speaker 2: a pretty low income would actually need to consider income insurance.

405
00:19:20,440 --> 00:19:24,000
Speaker 3: In my personal opinion, absolutely yes. I think the earlier

406
00:19:24,040 --> 00:19:26,639
Speaker 3: the better. At the end of the day, this is

407
00:19:26,720 --> 00:19:29,680
Speaker 3: actually an investment in you, Like, we spend so much

408
00:19:29,720 --> 00:19:32,120
Speaker 3: money on things that one we don't need, but then

409
00:19:32,160 --> 00:19:34,919
Speaker 3: two that we think are protecting us. I'll jump up

410
00:19:34,960 --> 00:19:38,720
Speaker 3: and down again about the car insurance versus the income

411
00:19:38,760 --> 00:19:42,880
Speaker 3: protection comparison I made before and for me, if you said, Victoria,

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Speaker 3: if you had to get rid of every single one

413
00:19:44,840 --> 00:19:47,800
Speaker 3: of your insurances, including car insurance, health insurance, on my

414
00:19:47,880 --> 00:19:50,960
Speaker 3: phone insurance, what would you keep. I would keep income

415
00:19:51,000 --> 00:19:53,159
Speaker 3: protection any day of the week, So you'd go that

416
00:19:53,280 --> 00:19:55,960
Speaker 3: I would go that above and beyond any other type

417
00:19:56,000 --> 00:19:59,639
Speaker 3: of insurance because protecting my income to me is of

418
00:19:59,800 --> 00:20:03,080
Speaker 3: very very large priority because for me, if my income

419
00:20:03,160 --> 00:20:05,840
Speaker 3: is protected, it means that I can still achieve the

420
00:20:05,840 --> 00:20:08,439
Speaker 3: things that I've been planning my whole life. So like

421
00:20:08,600 --> 00:20:10,760
Speaker 3: right now, I'm twenty eight and I'm making some pretty

422
00:20:10,800 --> 00:20:12,959
Speaker 3: big plans. You know, I'm probably going to purchase a

423
00:20:13,000 --> 00:20:15,480
Speaker 3: family home at some point, I'm probably going to have children.

424
00:20:15,520 --> 00:20:17,480
Speaker 3: At some point, I'm probably going to, you know, want

425
00:20:17,480 --> 00:20:20,560
Speaker 3: to go on trips overseas. And for me, I think

426
00:20:20,640 --> 00:20:24,120
Speaker 3: that ensuring the ability to still achieve all of those

427
00:20:24,160 --> 00:20:27,240
Speaker 3: financial goals, whether or not I have the capacity to work,

428
00:20:27,359 --> 00:20:29,560
Speaker 3: is essential. Like if I ride off a car, I'm

429
00:20:29,560 --> 00:20:32,040
Speaker 3: not saying get rid of your car insurance and take

430
00:20:32,080 --> 00:20:34,440
Speaker 3: this insurance up, But I just really want to highlight

431
00:20:34,480 --> 00:20:38,000
Speaker 3: the importance to me of income protection, and that is

432
00:20:38,160 --> 00:20:40,360
Speaker 3: I can buy another car with the income I'm creating

433
00:20:40,400 --> 00:20:42,600
Speaker 3: each and every single month if I can guarantee it's

434
00:20:42,600 --> 00:20:46,639
Speaker 3: still coming in. In terms of cost, it isn't prohibitive.

435
00:20:46,800 --> 00:20:49,479
Speaker 3: I believe that there is a really negative stigma in

436
00:20:49,960 --> 00:20:53,000
Speaker 3: society about how much it costs to get income protection.

437
00:20:53,400 --> 00:20:56,080
Speaker 3: But at scales based on how old you are and

438
00:20:56,160 --> 00:20:58,680
Speaker 3: what income you're making. So if you're really young and

439
00:20:58,800 --> 00:21:01,800
Speaker 3: not making much money. So an example that I just

440
00:21:01,840 --> 00:21:05,760
Speaker 3: pulled from the Canstar dot com dot au website for

441
00:21:05,840 --> 00:21:10,000
Speaker 3: a twenty seven year old non smoker female, a monthly

442
00:21:10,040 --> 00:21:13,680
Speaker 3: benefit paid out of thirty one hundred and twenty five dollars.

443
00:21:14,080 --> 00:21:16,600
Speaker 3: For an accountant. There's a couple of examples here, but

444
00:21:16,600 --> 00:21:19,440
Speaker 3: for an accountant is about fifty dollars a month in

445
00:21:19,440 --> 00:21:22,280
Speaker 3: income protection. That's so that's what I'm not saying that

446
00:21:22,280 --> 00:21:24,840
Speaker 3: that's exactly what it'll cost you personally, but it's a

447
00:21:24,880 --> 00:21:29,320
Speaker 3: good example. And something to also take into consideration about

448
00:21:29,359 --> 00:21:32,840
Speaker 3: income protection is it's tax deductible. So that sounds a

449
00:21:32,880 --> 00:21:36,719
Speaker 3: little bit sexy. That's a little bit of my interest. Yeah, okay,

450
00:21:37,040 --> 00:21:40,919
Speaker 3: just tax deductible. But when things are tax deductible, it

451
00:21:41,080 --> 00:21:43,359
Speaker 3: means that you pay tax on it. So if you

452
00:21:43,400 --> 00:21:46,680
Speaker 3: are making that three thousand dollars premium and that's being

453
00:21:46,720 --> 00:21:49,040
Speaker 3: paid to you, you still have to pay tax on it.

454
00:21:49,320 --> 00:21:51,600
Speaker 3: And I think that that's worthy of pointing out because

455
00:21:51,600 --> 00:21:55,160
Speaker 3: there are some insurances like trauma insurance that you do

456
00:21:55,200 --> 00:21:57,679
Speaker 3: not pay tax on. But the reason you do not

457
00:21:57,760 --> 00:22:01,080
Speaker 3: pay tax on trauma insurance is because you actually receive

458
00:22:01,200 --> 00:22:03,840
Speaker 3: the full benefit payout instead of you know, getting one

459
00:22:03,880 --> 00:22:06,000
Speaker 3: hundred thousand dollars and then having to pay most of

460
00:22:06,000 --> 00:22:08,359
Speaker 3: it back in tax. Does that make sense? It does,

461
00:22:08,600 --> 00:22:12,760
Speaker 3: so no cost isn't prohibitive, But it also depends on

462
00:22:12,800 --> 00:22:15,520
Speaker 3: whether you're going down the retail pathway or you're going

463
00:22:15,560 --> 00:22:19,120
Speaker 3: to see a financial advisor. A financial advisor has access

464
00:22:19,160 --> 00:22:24,440
Speaker 3: to often cheaper and more complex, slash better products than

465
00:22:24,600 --> 00:22:27,359
Speaker 3: retail because you just don't want an off the shelf

466
00:22:27,400 --> 00:22:30,159
Speaker 3: income protection policy, like they do not cover you for

467
00:22:30,240 --> 00:22:32,280
Speaker 3: the things that you need to be covered for, but

468
00:22:32,400 --> 00:22:35,320
Speaker 3: they will still charge you through the nose for the

469
00:22:35,320 --> 00:22:38,080
Speaker 3: grace of having that policy. So I think it's really

470
00:22:38,119 --> 00:22:41,320
Speaker 3: important that if you're on an insurance comparison website and

471
00:22:41,400 --> 00:22:44,879
Speaker 3: picking which income protection policy you need, you're probably in

472
00:22:44,960 --> 00:22:47,800
Speaker 3: the wrong place, and in all honesty, have a chat

473
00:22:47,840 --> 00:22:50,720
Speaker 3: to a financial advisor about this. And if you are

474
00:22:50,840 --> 00:22:54,520
Speaker 3: only talking to a financial advisor about setting up insurances,

475
00:22:54,720 --> 00:22:56,240
Speaker 3: it shouldn't be too expensive.

476
00:22:56,440 --> 00:23:00,640
Speaker 2: You just touched on trauma insurance, Victoria, I did. Can

477
00:23:00,640 --> 00:23:02,120
Speaker 2: you tell me a little bit more about that?

478
00:23:02,560 --> 00:23:08,000
Speaker 3: I can trauma insurance is a standalone insurance policy that

479
00:23:08,320 --> 00:23:12,240
Speaker 3: more often than not, you hold personally. This isn't one

480
00:23:12,280 --> 00:23:16,560
Speaker 3: that is commonly found sitting inside your superannuation. Trauma insurance cover,

481
00:23:16,760 --> 00:23:21,120
Speaker 3: or sometimes it's called critical illness insurance, provides alumpu payout

482
00:23:21,200 --> 00:23:24,920
Speaker 3: to cover immediate medical expenses or other financial needs when

483
00:23:25,000 --> 00:23:27,680
Speaker 3: a critical illness or an injury occurs. So that could

484
00:23:27,760 --> 00:23:31,040
Speaker 3: be anything from experiencing a heart attack or stroke to

485
00:23:31,240 --> 00:23:34,160
Speaker 3: being hit by a bus, various types of cancers, etc.

486
00:23:34,720 --> 00:23:37,159
Speaker 3: So it is a really traumatic period in your life

487
00:23:37,200 --> 00:23:39,960
Speaker 3: that you experience, but that's why we have trauma cover.

488
00:23:40,480 --> 00:23:43,159
Speaker 3: So trauma pays an agreed amount of cover to you

489
00:23:43,520 --> 00:23:46,119
Speaker 3: for many different things. And as I mentioned before, like

490
00:23:46,160 --> 00:23:49,080
Speaker 3: the list is lessen it totally depends on which type

491
00:23:49,080 --> 00:23:51,760
Speaker 3: of policy or which company you go through, because their

492
00:23:51,760 --> 00:23:55,160
Speaker 3: pds will outline the things you are and aren't covered for.

493
00:23:55,320 --> 00:23:57,760
Speaker 3: And it's very very important that if you're going to

494
00:23:57,760 --> 00:24:01,480
Speaker 3: get an insurance you understand the breadth of cover as

495
00:24:01,480 --> 00:24:03,399
Speaker 3: opposed to just going oh, well, I went with this

496
00:24:03,480 --> 00:24:06,200
Speaker 3: insurance company because I liked their branding and marketing better.

497
00:24:06,560 --> 00:24:08,879
Speaker 3: It's really important to get into the needy gritty of

498
00:24:08,920 --> 00:24:13,720
Speaker 3: it because sometimes they'll exclude different parts of certain illnesses.

499
00:24:13,800 --> 00:24:16,520
Speaker 3: So I know that for breast cancer or recently I've

500
00:24:16,520 --> 00:24:19,520
Speaker 3: been looking into this for a client. Only some forms

501
00:24:19,560 --> 00:24:23,160
Speaker 3: of breast cancer are covered, really, but more, more traumatic

502
00:24:23,240 --> 00:24:26,000
Speaker 3: and more serious versions of breast cancer were not. And

503
00:24:26,040 --> 00:24:30,119
Speaker 3: then genetic breast cancer wasn't covered, but standalone breast cancer was.

504
00:24:30,200 --> 00:24:32,760
Speaker 3: So it's one of those things where you really need

505
00:24:32,760 --> 00:24:36,120
Speaker 3: to understand the policy instead of just going, Okay, well

506
00:24:36,160 --> 00:24:39,399
Speaker 3: i've got trauma, that's fantastic. So a serious illness or

507
00:24:39,400 --> 00:24:43,040
Speaker 3: injury causes much more than just the physical issues. So

508
00:24:43,160 --> 00:24:45,440
Speaker 3: you know, let's say that you were riding your bike

509
00:24:45,520 --> 00:24:49,600
Speaker 3: to work and unfortunately you yesterday got hit by a bus.

510
00:24:49,960 --> 00:24:53,640
Speaker 3: It's so much more than just physical and emotional turmoil.

511
00:24:54,000 --> 00:24:57,280
Speaker 3: It has the potential to cause massive disruption to your

512
00:24:57,320 --> 00:25:00,919
Speaker 3: income and to your lifestyle. And while income protection is

513
00:25:00,920 --> 00:25:03,359
Speaker 3: going to help replace a portion of your income, and

514
00:25:03,440 --> 00:25:06,000
Speaker 3: that is usually up to seventy five percent of your income,

515
00:25:06,040 --> 00:25:08,480
Speaker 3: that is stands across the board. When you can't work

516
00:25:08,560 --> 00:25:11,320
Speaker 3: due to illness or injury, it's useful to have a

517
00:25:11,359 --> 00:25:13,919
Speaker 3: lump sum of money that can cover your medical needs

518
00:25:13,920 --> 00:25:17,760
Speaker 3: and financial needs because often those are above and beyond

519
00:25:18,200 --> 00:25:21,320
Speaker 3: what private health insurance covers for. So, say you need

520
00:25:21,440 --> 00:25:24,440
Speaker 3: specialist plastic surgery, this is going to help you pay

521
00:25:24,480 --> 00:25:26,840
Speaker 3: for all of those out of pocket expenses. It's going

522
00:25:26,920 --> 00:25:29,280
Speaker 3: to help you pay for the travel and for all

523
00:25:29,320 --> 00:25:31,439
Speaker 3: of the things that you need to get back to

524
00:25:31,480 --> 00:25:34,080
Speaker 3: being your best self. This is where trauma insurance just

525
00:25:34,119 --> 00:25:36,199
Speaker 3: comes to the party, so you can get on with

526
00:25:36,320 --> 00:25:38,399
Speaker 3: recovering and get on with your life without having to

527
00:25:38,440 --> 00:25:41,600
Speaker 3: worry too much about your finances. It's one of those

528
00:25:41,600 --> 00:25:44,520
Speaker 3: things that a lot of people have, and it is

529
00:25:44,560 --> 00:25:47,479
Speaker 3: actually a more expensive insurance. So if we compare them

530
00:25:47,480 --> 00:25:50,439
Speaker 3: all for the levels of cover, trauma insurance is a

531
00:25:50,480 --> 00:25:53,359
Speaker 3: little bit more expensive. And the reason for that is

532
00:25:53,400 --> 00:25:57,399
Speaker 3: it's claimed on often, so it's not something that people

533
00:25:57,520 --> 00:26:00,600
Speaker 3: have and don't use. It is something that does get used.

534
00:26:00,960 --> 00:26:05,000
Speaker 3: And when insurance companies price insurance policies, they price that

535
00:26:05,080 --> 00:26:07,600
Speaker 3: based on a heap of things, but the biggest thing

536
00:26:07,640 --> 00:26:10,560
Speaker 3: they price on is a risk. So the more at

537
00:26:10,680 --> 00:26:13,280
Speaker 3: risk you are, depending on your job or dexending on

538
00:26:13,320 --> 00:26:16,560
Speaker 3: your lifestyle or your age or your lifestyle habits, the

539
00:26:16,640 --> 00:26:19,640
Speaker 3: higher your policy is going to be priced at. So

540
00:26:20,000 --> 00:26:23,080
Speaker 3: it's important to understand what isn't isn't covered, but then

541
00:26:23,119 --> 00:26:26,600
Speaker 3: what it's going to cost you. And often my clients

542
00:26:26,640 --> 00:26:31,359
Speaker 3: who do have family histories of significant and very serious illnesses,

543
00:26:32,000 --> 00:26:34,320
Speaker 3: they want to be covered with trauma because it's kind

544
00:26:34,320 --> 00:26:37,240
Speaker 3: of like, well, actually, I can pretty much guarantee at

545
00:26:37,280 --> 00:26:40,240
Speaker 3: some point I'm going, yeah, I'm going to be hit

546
00:26:40,320 --> 00:26:42,560
Speaker 3: with this situation, and I want to make sure that

547
00:26:42,680 --> 00:26:45,840
Speaker 3: when that happens, I'm in the best possible position and

548
00:26:45,880 --> 00:26:47,480
Speaker 3: I don't miss a beat financially.

549
00:26:47,560 --> 00:26:51,280
Speaker 2: Also, Victoria, I work in TV and in a variety

550
00:26:51,280 --> 00:26:51,480
Speaker 2: you do.

551
00:26:52,320 --> 00:26:54,879
Speaker 3: Thanks so much exciting trauma insurance. So we're just going

552
00:26:54,920 --> 00:27:00,600
Speaker 3: to go completely to talk about as a twenty five

553
00:27:00,680 --> 00:27:04,119
Speaker 3: year old who works a relatively pushy office job, I.

554
00:27:04,119 --> 00:27:07,520
Speaker 2: Guess yes, girl, How does that compare to someone who

555
00:27:07,520 --> 00:27:10,200
Speaker 2: works in say, construction of somewhere where there's a lot

556
00:27:10,280 --> 00:27:13,320
Speaker 2: higher risk of injury? What do we need to be

557
00:27:13,400 --> 00:27:14,760
Speaker 2: considering that? Do I still need.

558
00:27:14,840 --> 00:27:17,760
Speaker 3: It's all taken into consideration. So it's one of those

559
00:27:17,800 --> 00:27:20,000
Speaker 3: things where you actually need to have a nitty gritty

560
00:27:20,040 --> 00:27:22,920
Speaker 3: conversation with a financial advisor to make sure that one

561
00:27:22,960 --> 00:27:25,480
Speaker 3: you can be covered because there are some industries that

562
00:27:25,560 --> 00:27:28,800
Speaker 3: aren't covered. So I have a new client. She is brilliant,

563
00:27:28,840 --> 00:27:30,280
Speaker 3: she is an air traffic controller.

564
00:27:30,400 --> 00:27:30,600
Speaker 4: Cool.

565
00:27:30,640 --> 00:27:32,960
Speaker 3: Well, we can't get some insurances for her because of

566
00:27:33,000 --> 00:27:35,920
Speaker 3: the risks associated with her job, and so we've had

567
00:27:35,920 --> 00:27:39,399
Speaker 3: to sit down and explain those things because it's often

568
00:27:39,520 --> 00:27:43,360
Speaker 3: a very complex situation or where are my client sits

569
00:27:43,400 --> 00:27:45,000
Speaker 3: down and goes But I could just go buy this

570
00:27:45,040 --> 00:27:47,440
Speaker 3: policy off the shelf. Yeah, well, actually you'd be paying

571
00:27:47,480 --> 00:27:50,280
Speaker 3: for a policy that you could never trigger and just

572
00:27:50,400 --> 00:27:53,960
Speaker 3: understanding what that means, and as her financial advisor, making

573
00:27:54,000 --> 00:27:57,960
Speaker 3: sure that I am essentially overcompensating in some other areas

574
00:27:58,000 --> 00:28:00,800
Speaker 3: because there are some things that she can't actually set

575
00:28:00,840 --> 00:28:04,040
Speaker 3: up for herself, so it's important to work out what

576
00:28:04,119 --> 00:28:07,200
Speaker 3: that means. But yes, if you are in a job

577
00:28:07,359 --> 00:28:10,920
Speaker 3: that has more risk associated with it, you are going

578
00:28:10,960 --> 00:28:14,119
Speaker 3: to either have increased premiums or you are maybe not

579
00:28:14,160 --> 00:28:16,159
Speaker 3: going to get some cover for some spaces that you

580
00:28:16,240 --> 00:28:19,520
Speaker 3: might have wanted cover before. And that actually leads really

581
00:28:19,520 --> 00:28:23,040
Speaker 3: well into a chat about Total and Permanent disability insurance

582
00:28:23,080 --> 00:28:26,320
Speaker 3: PPD insurance. Yes, girl, you were calling it, what was

583
00:28:26,320 --> 00:28:30,919
Speaker 3: it before? You're calling it TPG internet? Yeah, apparently an

584
00:28:30,920 --> 00:28:33,440
Speaker 3: internet provider. But you can use the internet to find

585
00:28:33,480 --> 00:28:37,200
Speaker 3: a financial advisor, so now sure if that's bad advice anyway.

586
00:28:37,320 --> 00:28:40,280
Speaker 3: Total and permanent disability insurance cover a lot of you

587
00:28:40,360 --> 00:28:42,920
Speaker 3: might already have it inside of supernuation. And if you

588
00:28:42,960 --> 00:28:45,360
Speaker 3: are listening to this podcast and you're like, what are

589
00:28:45,360 --> 00:28:48,240
Speaker 3: you talking about, Victoria, I don't have insurances inside my

590
00:28:48,280 --> 00:28:51,120
Speaker 3: super check, make sure that they are not there. This

591
00:28:51,160 --> 00:28:53,400
Speaker 3: is something that I jump up and down about all

592
00:28:53,640 --> 00:28:58,760
Speaker 3: the time, because your insurances inside superannuation they're kind of special,

593
00:28:59,120 --> 00:29:02,120
Speaker 3: like they are insurance is that whilst I often don't

594
00:29:02,240 --> 00:29:04,560
Speaker 3: love the policies and I don't love a lot of

595
00:29:04,560 --> 00:29:07,880
Speaker 3: the terms and conditions associated with them, often they were

596
00:29:08,000 --> 00:29:11,480
Speaker 3: established really early on, which means you don't have any

597
00:29:11,560 --> 00:29:14,920
Speaker 3: exclusions associated with them. So if you've gotten older and

598
00:29:14,960 --> 00:29:17,360
Speaker 3: something has happened to you, or you've found something out

599
00:29:17,400 --> 00:29:21,760
Speaker 3: about yourself medically, these insurances often make sure that you're

600
00:29:21,760 --> 00:29:24,680
Speaker 3: covered for those things, and a financial advisor will help

601
00:29:24,760 --> 00:29:27,640
Speaker 3: sit you down and explain why we might keep some

602
00:29:27,760 --> 00:29:30,040
Speaker 3: of that insurance and top it up in another area

603
00:29:30,080 --> 00:29:32,480
Speaker 3: with a different policy to make sure that you're always

604
00:29:32,560 --> 00:29:34,840
Speaker 3: covered for the things that you need to be covered for.

605
00:29:35,240 --> 00:29:38,280
Speaker 3: And for me, this is vital that you don't just

606
00:29:38,320 --> 00:29:41,360
Speaker 3: go in and roll your superannuations together into one fund

607
00:29:41,400 --> 00:29:43,680
Speaker 3: and go cool. Well I did my superme in one fund.

608
00:29:43,880 --> 00:29:46,600
Speaker 3: But you've actually missed a whole heap of opportunities to

609
00:29:46,800 --> 00:29:49,160
Speaker 3: ensure that you have the right insurances in place for you.

610
00:29:49,440 --> 00:29:51,760
Speaker 2: Cool story, Victoria. But you were meant to be telling

611
00:29:51,800 --> 00:29:52,720
Speaker 2: me about TPD.

612
00:29:52,880 --> 00:29:56,000
Speaker 3: Excuse me back to the point. No, that is true.

613
00:29:56,040 --> 00:29:57,680
Speaker 3: I get a little bit randy when we.

614
00:29:57,640 --> 00:29:59,200
Speaker 2: Talked to you your passions and I'm loving it.

615
00:29:59,280 --> 00:30:04,120
Speaker 3: Yeah, raising my hands about my head and like very animated. Yeah. Okay, anyway,

616
00:30:04,160 --> 00:30:06,560
Speaker 3: TVV all right, to those playing along home, total and

617
00:30:06,600 --> 00:30:09,920
Speaker 3: permanent disability insurance cover it pays you a lump some

618
00:30:10,240 --> 00:30:14,080
Speaker 3: if you become totally and permanently disabled. So the definition

619
00:30:14,120 --> 00:30:18,080
Speaker 3: of total and permanent disability actually really varies between insurance companies,

620
00:30:18,280 --> 00:30:20,239
Speaker 3: so it can mean one thing to one person and

621
00:30:20,280 --> 00:30:23,640
Speaker 3: a completely separate thing to someone else. So again I'm

622
00:30:23,640 --> 00:30:27,680
Speaker 3: harping on this, but understand your pds. Understand the definitions

623
00:30:27,720 --> 00:30:30,720
Speaker 3: that your insurer puts in front of you. It can

624
00:30:30,760 --> 00:30:32,800
Speaker 3: mean that you are disabled to the extent that you

625
00:30:32,880 --> 00:30:35,120
Speaker 3: probably will be unable to work ever again in your

626
00:30:35,120 --> 00:30:38,200
Speaker 3: occupational job, or it could mean something a little bit

627
00:30:38,320 --> 00:30:41,920
Speaker 3: lighter than that, but again, please look into making sure

628
00:30:41,920 --> 00:30:44,960
Speaker 3: that you understand what you are covered for and what

629
00:30:45,080 --> 00:30:47,920
Speaker 3: you are not. So TBD is an insurance that I

630
00:30:47,960 --> 00:30:50,440
Speaker 3: often talk to my clients about to make sure that

631
00:30:50,520 --> 00:30:53,840
Speaker 3: you have enough money to continue life. So, as I said,

632
00:30:53,960 --> 00:30:56,560
Speaker 3: income protection is something that will help replace a portion

633
00:30:56,640 --> 00:30:59,760
Speaker 3: of your income when you're unable to work due to sickness, injury,

634
00:30:59,840 --> 00:31:04,440
Speaker 3: or illness. But if you are permanently disabled and unable

635
00:31:04,480 --> 00:31:07,120
Speaker 3: to ever return to work again, it's also really useful

636
00:31:07,160 --> 00:31:09,560
Speaker 3: to have a large lump of money that covers your

637
00:31:09,560 --> 00:31:12,960
Speaker 3: immediate medical needs but also makes sure that you're clearing

638
00:31:13,040 --> 00:31:16,440
Speaker 3: any outstanding debts or the mortgage that you have, or

639
00:31:16,520 --> 00:31:19,160
Speaker 3: help set up, you know, any changes that you need

640
00:31:19,240 --> 00:31:21,920
Speaker 3: to make to your house. So say something happens and

641
00:31:21,960 --> 00:31:25,120
Speaker 3: you are seriously disabled, or you're probably going to need

642
00:31:25,160 --> 00:31:27,640
Speaker 3: to make some pretty serious modifications to your house. Maybe

643
00:31:27,640 --> 00:31:29,160
Speaker 3: you need to ramp at the front to help the

644
00:31:29,160 --> 00:31:31,960
Speaker 3: wheelchair cut up, Maybe you need modifications to your bathroom,

645
00:31:31,960 --> 00:31:35,960
Speaker 3: and that's it's really expensive. And I never want any

646
00:31:36,000 --> 00:31:37,720
Speaker 3: of my clients, or you know, want any of my

647
00:31:37,760 --> 00:31:40,120
Speaker 3: community to be on the back foot when it comes

648
00:31:40,200 --> 00:31:42,240
Speaker 3: to that. So as much as I jump up and

649
00:31:42,280 --> 00:31:46,800
Speaker 3: down about having income protection, having other insurances in place

650
00:31:46,840 --> 00:31:48,760
Speaker 3: to make sure that you're able to make the most

651
00:31:48,760 --> 00:31:53,320
Speaker 3: of that income is really really important. So TBD really

652
00:31:53,360 --> 00:31:56,880
Speaker 3: hard to calculate how much cover you need. The appropriate

653
00:31:56,920 --> 00:32:00,280
Speaker 3: amount of cover again depends on your family situation, life

654
00:32:00,280 --> 00:32:02,400
Speaker 3: stage that you are in. It's one of those things

655
00:32:02,400 --> 00:32:05,320
Speaker 3: that is really flexible. As you're going through a period

656
00:32:05,320 --> 00:32:07,480
Speaker 3: in your life where you have dependence and a mortgage,

657
00:32:07,680 --> 00:32:09,840
Speaker 3: you need a lot more. And when you get out

658
00:32:09,840 --> 00:32:11,720
Speaker 3: of that life stage, you've paid off the mortgage, the

659
00:32:11,800 --> 00:32:13,960
Speaker 3: kids have gone and they've set up their own homes,

660
00:32:14,240 --> 00:32:16,600
Speaker 3: and you're probably in a position, hopefully, you know, in

661
00:32:16,640 --> 00:32:18,840
Speaker 3: thirty years, when you've been listening to the Cheese on

662
00:32:18,880 --> 00:32:21,120
Speaker 3: the Money podcast for a really long time, you're in

663
00:32:21,160 --> 00:32:24,120
Speaker 3: a really financially independent position. You're going to need a

664
00:32:24,160 --> 00:32:27,200
Speaker 3: lot less because you become what's called self insured, and

665
00:32:27,200 --> 00:32:30,040
Speaker 3: that's where you have enough money in investments that are

666
00:32:30,040 --> 00:32:33,400
Speaker 3: producing income, so you don't actually need insurances because you're

667
00:32:33,440 --> 00:32:36,240
Speaker 3: able to self sustain. But that's pretty cool. That's like

668
00:32:36,320 --> 00:32:39,160
Speaker 3: my ultimate goal, yep, for those playing along at home.

669
00:32:39,600 --> 00:32:43,120
Speaker 3: But TBD primarily exists to make sure that any of

670
00:32:43,160 --> 00:32:45,680
Speaker 3: your immediate medical needs that you have and getting rid

671
00:32:45,720 --> 00:32:48,400
Speaker 3: of debt. So it's one of those things that it's important.

672
00:32:48,720 --> 00:32:51,560
Speaker 3: But keep in mind that there's so much more to

673
00:32:51,600 --> 00:32:53,400
Speaker 3: disability than just medical need.

674
00:32:56,400 --> 00:32:56,520
Speaker 1: Hi.

675
00:32:56,640 --> 00:32:59,360
Speaker 2: There, you've breached the shoes on the money mailbox. Do

676
00:32:59,400 --> 00:33:01,120
Speaker 2: you have a money problem you want to help solving.

677
00:33:01,440 --> 00:33:02,800
Speaker 2: Do you have a money to learn me you just

678
00:33:02,840 --> 00:33:05,880
Speaker 2: want to chat about? Victoria is here to help. Every

679
00:33:05,920 --> 00:33:08,200
Speaker 2: week we'll be playing your questions to help make sense

680
00:33:08,240 --> 00:33:10,000
Speaker 2: of a money mess you may have found yourself in.

681
00:33:10,480 --> 00:33:12,360
Speaker 2: Make a quick recording on your phone and send it

682
00:33:12,400 --> 00:33:15,320
Speaker 2: through to podcast at chooesothemoney dot com dot au and

683
00:33:15,400 --> 00:33:17,840
Speaker 2: you might find yourself on the show. But for now,

684
00:33:17,960 --> 00:33:19,200
Speaker 2: here's today's listener question.

685
00:33:19,720 --> 00:33:22,640
Speaker 4: Hi guys, my name's Chloe and I'm currently in the

686
00:33:22,680 --> 00:33:26,680
Speaker 4: process of reorganizing my finances. One element I'm having some

687
00:33:26,760 --> 00:33:31,160
Speaker 4: trouble with is insurance. I'm twenty seven with no dependents

688
00:33:31,280 --> 00:33:34,760
Speaker 4: and I currently have private health insurance, but I'm getting

689
00:33:34,800 --> 00:33:37,640
Speaker 4: really confused by all of the insurance options. If I

690
00:33:37,680 --> 00:33:41,440
Speaker 4: set up all of my personal insurances properly, does that

691
00:33:41,560 --> 00:33:44,320
Speaker 4: mean I can cancel my private health insurance or do

692
00:33:44,400 --> 00:33:45,720
Speaker 4: I need to keep it? Thank you.

693
00:33:46,560 --> 00:33:49,600
Speaker 2: I kind of have the same question too.

694
00:33:49,680 --> 00:33:52,000
Speaker 3: Actually, well, yeah, I think it's a good question. Though

695
00:33:52,080 --> 00:33:54,680
Speaker 3: it's something that comes up all the time. It's absolutely

696
00:33:54,720 --> 00:33:57,360
Speaker 3: something that is warranted to discuss, yep. And I think

697
00:33:57,400 --> 00:33:59,840
Speaker 3: that it is really important to point out that private

698
00:33:59,800 --> 00:34:03,520
Speaker 3: health health insurance only covers certain bills related to medical treatment,

699
00:34:03,760 --> 00:34:07,240
Speaker 3: and it often doesn't cover a lot else. See the

700
00:34:07,280 --> 00:34:10,359
Speaker 3: standards like dental, Yeah, the standards, and like if you've

701
00:34:10,400 --> 00:34:13,839
Speaker 3: got really high levels of private health insurance, amazing, but

702
00:34:14,120 --> 00:34:18,000
Speaker 3: there are still gaps in what's going on. And hospital

703
00:34:18,000 --> 00:34:21,719
Speaker 3: policies generally cover treatment as a private patient in either

704
00:34:21,760 --> 00:34:23,960
Speaker 3: a public or a private hospital. And like low key

705
00:34:24,040 --> 00:34:26,040
Speaker 3: off the side, if you are going to have private

706
00:34:26,080 --> 00:34:28,840
Speaker 3: health insurance, make sure that you are treated as a

707
00:34:28,880 --> 00:34:31,880
Speaker 3: private patient in a private hospital. Because I know a

708
00:34:31,920 --> 00:34:35,120
Speaker 3: couple of people have got stung where they have hospital

709
00:34:35,160 --> 00:34:38,000
Speaker 3: policies and they have their private health insurance all lined up,

710
00:34:38,160 --> 00:34:40,600
Speaker 3: but it's so that they get treated as a private

711
00:34:40,640 --> 00:34:43,160
Speaker 3: patient in a public hospital. And if you're going to

712
00:34:43,160 --> 00:34:46,000
Speaker 3: be paying for private health insurance, I'm assuming that you

713
00:34:46,120 --> 00:34:48,360
Speaker 3: just thought that meant you could go to a private hospital.

714
00:34:48,480 --> 00:34:50,359
Speaker 3: When in actual fact that's not the case, and it's

715
00:34:50,400 --> 00:34:53,439
Speaker 3: definitely something that she probably needs to look into as well,

716
00:34:53,480 --> 00:34:56,080
Speaker 3: assuming she's not going to cancel her private health insurance.

717
00:34:56,560 --> 00:34:59,080
Speaker 3: If you have an extras policy that might cover you

718
00:34:59,280 --> 00:35:01,920
Speaker 3: for things that go and beyond like optical and dental

719
00:35:01,960 --> 00:35:05,239
Speaker 3: and other treatment for non medical or allied health services,

720
00:35:05,880 --> 00:35:09,359
Speaker 3: but private health insurance isn't going to pay you for

721
00:35:09,480 --> 00:35:12,320
Speaker 3: any loss of income you sustain while you're in hospital

722
00:35:12,440 --> 00:35:14,920
Speaker 3: or recovering, or if you've broken your leg and you

723
00:35:14,960 --> 00:35:17,480
Speaker 3: can't go to work for a while like that often

724
00:35:17,560 --> 00:35:22,319
Speaker 3: impacts people really significantly and financially. And whilst private health

725
00:35:22,320 --> 00:35:24,360
Speaker 3: insurance means that you're going to have access to the

726
00:35:24,400 --> 00:35:28,160
Speaker 3: best medical care that we have available in Australia, it

727
00:35:28,239 --> 00:35:30,360
Speaker 3: doesn't mean that you're not going to get stung for

728
00:35:30,440 --> 00:35:33,000
Speaker 3: having a private anethetist. It doesn't mean that you're not

729
00:35:33,040 --> 00:35:36,120
Speaker 3: going to get stung. It's still going to be extra expense, yeah,

730
00:35:36,239 --> 00:35:40,239
Speaker 3: for you know, a really particular cancer specialist that you

731
00:35:40,280 --> 00:35:43,279
Speaker 3: know isn't actually covered by the system. So I think

732
00:35:43,280 --> 00:35:46,719
Speaker 3: it's important that during the time that is probably going

733
00:35:46,760 --> 00:35:49,400
Speaker 3: to be the most traumatic event in your life, you

734
00:35:49,440 --> 00:35:53,040
Speaker 3: are actually covering your normal expenses and commitments as well

735
00:35:53,120 --> 00:35:55,839
Speaker 3: as the private health costs that are going to be there.

736
00:35:56,239 --> 00:35:59,000
Speaker 3: So unless you have really significant amounts of savings set

737
00:35:59,040 --> 00:36:01,560
Speaker 3: aside or a really life full of leave entitlements with

738
00:36:01,640 --> 00:36:05,240
Speaker 3: your employer, this could actually have a pretty devastating impact

739
00:36:05,320 --> 00:36:08,280
Speaker 3: on your family and your friends if you're then thrown

740
00:36:08,320 --> 00:36:10,960
Speaker 3: into a position where you don't have an income. So

741
00:36:11,200 --> 00:36:13,400
Speaker 3: the policies that I was talking about earlier in the

742
00:36:13,400 --> 00:36:16,480
Speaker 3: pod before the question, it's really good in collaboration with

743
00:36:16,640 --> 00:36:19,279
Speaker 3: your private health insurance. So it's not something where I say,

744
00:36:19,280 --> 00:36:20,840
Speaker 3: all right, well you can just get rid of it,

745
00:36:21,280 --> 00:36:25,000
Speaker 3: and they are absolutely certain. There are absolutely times that

746
00:36:25,080 --> 00:36:27,520
Speaker 3: I just say to clients, yep, get private health insurance.

747
00:36:27,560 --> 00:36:30,600
Speaker 3: For example, if they earn over the Medicare threshold, and

748
00:36:30,840 --> 00:36:33,919
Speaker 3: they earn more than ninety thousand dollars, you probably should

749
00:36:33,960 --> 00:36:36,560
Speaker 3: have private health insurance because otherwise you're paying the Medicare levy.

750
00:36:37,280 --> 00:36:41,080
Speaker 3: But then it is definitely down to personal preference, because

751
00:36:41,160 --> 00:36:43,640
Speaker 3: as we all know, Australia is known as the Lucky country,

752
00:36:43,640 --> 00:36:45,719
Speaker 3: and our standard of living and our climate and our

753
00:36:45,760 --> 00:36:49,920
Speaker 3: health care and social systems are so amazing that we

754
00:36:49,960 --> 00:36:53,000
Speaker 3: are supported. So it literally comes down to what you

755
00:36:53,120 --> 00:36:55,839
Speaker 3: value as a person. But I also want to touch

756
00:36:55,880 --> 00:36:58,800
Speaker 3: on something that I love and this is actually by Zurix.

757
00:36:58,920 --> 00:37:01,400
Speaker 3: So shout out to my friend down at Zurich, Emily,

758
00:37:01,480 --> 00:37:05,439
Speaker 3: I love you. You're my favorite lovely. But they recently did,

759
00:37:05,600 --> 00:37:08,000
Speaker 3: and I think it was in twenty eighteen they released this.

760
00:37:08,200 --> 00:37:11,560
Speaker 3: It was the Zurich Cost of Care white Paper, and

761
00:37:11,600 --> 00:37:16,080
Speaker 3: that white paper actually outlined the cost of medical care

762
00:37:16,200 --> 00:37:19,560
Speaker 3: in Australia and insurance claims and was this super in

763
00:37:19,640 --> 00:37:22,680
Speaker 3: depth white paper. If anyone's interested, they're probably not better,

764
00:37:22,719 --> 00:37:25,400
Speaker 3: I'll just abound it for a little longer kind of interested.

765
00:37:25,920 --> 00:37:29,120
Speaker 3: But it essentially outlined how much a cost to be

766
00:37:29,160 --> 00:37:32,719
Speaker 3: sick in Australia and what covers what and when and

767
00:37:32,800 --> 00:37:35,440
Speaker 3: where and how, And I absolutely loved it. And it

768
00:37:35,560 --> 00:37:38,239
Speaker 3: was just one of these things that you know, the

769
00:37:38,280 --> 00:37:40,520
Speaker 3: facts and figures in that were amazing.

770
00:37:40,880 --> 00:37:42,040
Speaker 2: Don stick out to Yeah.

771
00:37:42,120 --> 00:37:45,480
Speaker 3: Yeah, So the cost of burden was estimated at thirty

772
00:37:45,560 --> 00:37:48,880
Speaker 3: billion dollars in upwards each year and it falls on

773
00:37:49,040 --> 00:37:53,560
Speaker 3: tax payers for those who don't have cover and those

774
00:37:53,600 --> 00:37:57,200
Speaker 3: that are ill and incrippitling situations. So it was one

775
00:37:57,200 --> 00:37:58,920
Speaker 3: of those things where I was like oh, well, actually

776
00:37:59,000 --> 00:38:01,840
Speaker 3: this is massive, and they actually found that in twenty

777
00:38:01,880 --> 00:38:04,840
Speaker 3: sixteen and twenty seventeen there were seven hundred and seventy

778
00:38:04,960 --> 00:38:09,160
Speaker 3: seven thousand hospitalizations due to injury or poisoning, and this

779
00:38:09,320 --> 00:38:11,320
Speaker 3: year alone, there are going to be one hundred and

780
00:38:11,360 --> 00:38:15,000
Speaker 3: thirty thousand new diagnosises of cancer. So I guess the

781
00:38:15,080 --> 00:38:19,799
Speaker 3: key takeaway from this conversation and talking about personal insurances

782
00:38:19,800 --> 00:38:22,120
Speaker 3: and talking about you know, making this a priority is

783
00:38:22,880 --> 00:38:25,880
Speaker 3: unsexy as it is, is we all think that this

784
00:38:25,920 --> 00:38:28,160
Speaker 3: stuff isn't going to happen to us. Absolutely, we all

785
00:38:28,200 --> 00:38:30,920
Speaker 3: think that this isn't our problem. And I'm healthy and

786
00:38:31,040 --> 00:38:34,080
Speaker 3: I'm okay. But all too often do I see those

787
00:38:34,120 --> 00:38:37,320
Speaker 3: people who thought that they were healthy and okay actually

788
00:38:37,360 --> 00:38:40,239
Speaker 3: have pretty significant health concerns or you know, just run

789
00:38:40,280 --> 00:38:43,680
Speaker 3: into injury that really knocks them off the bandwagon. And

790
00:38:43,719 --> 00:38:45,480
Speaker 3: I would never want someone to be in a position

791
00:38:45,640 --> 00:38:51,040
Speaker 3: like that. So today, guys, we are joined by my

792
00:38:51,160 --> 00:38:54,840
Speaker 3: good friend Emily Cosennani, who works in the life insurance

793
00:38:54,880 --> 00:38:57,520
Speaker 3: industry and has done for many, many years. And I

794
00:38:57,560 --> 00:38:59,719
Speaker 3: thought that I would bring her along today instead of

795
00:38:59,719 --> 00:39:02,520
Speaker 3: a diary, because I thought she had a whole heap

796
00:39:02,600 --> 00:39:04,759
Speaker 3: more value to provide you guys with in terms of

797
00:39:04,880 --> 00:39:08,800
Speaker 3: experiences and examples that we can all learn from. So Emily,

798
00:39:08,920 --> 00:39:11,959
Speaker 3: thank you for joining us today. And let's just jump

799
00:39:12,080 --> 00:39:14,640
Speaker 3: straight in. Why don't we tell me a little bit

800
00:39:14,680 --> 00:39:17,080
Speaker 3: about yourself? What do you do? How do you work

801
00:39:17,080 --> 00:39:18,160
Speaker 3: in the insurance industry?

802
00:39:18,520 --> 00:39:18,600
Speaker 4: So?

803
00:39:18,719 --> 00:39:22,000
Speaker 1: I work in the life insurance industry and work at

804
00:39:22,000 --> 00:39:24,880
Speaker 1: a life insurance company more specifically, have done for a

805
00:39:24,920 --> 00:39:27,279
Speaker 1: little while now, but before that, I worked for a

806
00:39:27,280 --> 00:39:31,480
Speaker 1: financial planner who specialized in giving life insurance advice, and

807
00:39:31,560 --> 00:39:33,640
Speaker 1: so it's definitely become a passion of mine.

808
00:39:33,680 --> 00:39:36,040
Speaker 3: As nerdy as that might sound, it's totally not. I

809
00:39:36,080 --> 00:39:38,799
Speaker 3: love it, Like you come into our office and whiteboard

810
00:39:38,880 --> 00:39:42,399
Speaker 3: out client scenarios like nobody I've ever seen. So when

811
00:39:42,440 --> 00:39:44,320
Speaker 3: this topic came up, I was like, Emily has to

812
00:39:44,320 --> 00:39:47,960
Speaker 3: be involved. So I guess jumping straight in. Obviously this

813
00:39:48,080 --> 00:39:51,320
Speaker 3: episode is about talking about insurance and to so many

814
00:39:51,440 --> 00:39:55,320
Speaker 3: young women and women in general, insurance is never the priority.

815
00:39:55,360 --> 00:39:58,120
Speaker 3: Do you think that that's probably an accurate depiction of

816
00:39:58,160 --> 00:40:01,520
Speaker 3: what I believe people's value. Yeah, I think you're spot

817
00:40:01,560 --> 00:40:01,919
Speaker 3: on there.

818
00:40:02,040 --> 00:40:04,600
Speaker 1: I think anecdotally not that I have a piece of

819
00:40:04,640 --> 00:40:07,640
Speaker 1: research that I can kind of refer back to. But anecdotally,

820
00:40:07,680 --> 00:40:11,160
Speaker 1: what you hear is that, yes, less women have any

821
00:40:11,239 --> 00:40:14,759
Speaker 1: kind of life insurance compared to men, which is quite

822
00:40:14,840 --> 00:40:18,919
Speaker 1: scary because we're all becoming these really good breadwinners, right,

823
00:40:19,000 --> 00:40:21,359
Speaker 1: and we're becoming just as important in that family unit,

824
00:40:21,600 --> 00:40:26,000
Speaker 1: and yet we've got less protection than our male counterparts.

825
00:40:26,480 --> 00:40:29,400
Speaker 3: Why do you think that is? I just think we're.

826
00:40:29,320 --> 00:40:33,200
Speaker 1: Undervalued, right, And we undervalue ourselves so much anyway, So

827
00:40:33,880 --> 00:40:36,840
Speaker 1: it's about this. Yeah, yeah, it's just part of the

828
00:40:36,920 --> 00:40:39,680
Speaker 1: vicious cycle of thinking, well, what we don't need it,

829
00:40:39,800 --> 00:40:41,759
Speaker 1: like I'm fine, it's you know, I've got someone else

830
00:40:41,800 --> 00:40:44,120
Speaker 1: you can take care of me, and that's more important.

831
00:40:44,200 --> 00:40:46,239
Speaker 1: And you know, we often put people in front of

832
00:40:46,239 --> 00:40:48,640
Speaker 1: ourselves and I think that is reflected in what we

833
00:40:48,760 --> 00:40:51,920
Speaker 1: do with life insurance and even just financial planning advice

834
00:40:52,000 --> 00:40:52,560
Speaker 1: in general.

835
00:40:52,960 --> 00:40:55,840
Speaker 3: Yeah, I agree. And whilst we don't have solid stats

836
00:40:55,880 --> 00:41:01,080
Speaker 3: on male versus female getting insurance, you know, I definitely

837
00:41:01,120 --> 00:41:03,360
Speaker 3: see it in my office as well, where a husband

838
00:41:03,400 --> 00:41:06,040
Speaker 3: and wife or partners will come in and if the

839
00:41:06,080 --> 00:41:08,640
Speaker 3: female is a stay at home mum, she would just say, oh,

840
00:41:08,680 --> 00:41:10,960
Speaker 3: I don't need insurance, like I don't work. I don't

841
00:41:11,000 --> 00:41:15,000
Speaker 3: generate income, And to me, that's so wildly dangerous because

842
00:41:15,040 --> 00:41:17,920
Speaker 3: her job is worth so much, and you know, to

843
00:41:18,000 --> 00:41:20,800
Speaker 3: replace her in that role is going to cost upwards.

844
00:41:20,840 --> 00:41:23,200
Speaker 3: I think the stats are ninety thousand dollars a year

845
00:41:23,239 --> 00:41:25,279
Speaker 3: to replace a state home mum. Yeah, so like she

846
00:41:25,360 --> 00:41:27,440
Speaker 3: often actually needs a little bit more insurance than her

847
00:41:27,480 --> 00:41:30,120
Speaker 3: partner actually does. It's so scary because you're one hundred

848
00:41:30,120 --> 00:41:30,720
Speaker 3: percent correct.

849
00:41:30,840 --> 00:41:33,880
Speaker 1: If you think about what a stay at home mum

850
00:41:34,120 --> 00:41:36,759
Speaker 1: is doing for her husband to be able to go

851
00:41:36,920 --> 00:41:39,319
Speaker 1: and work the hours that they work, or travel as

852
00:41:39,360 --> 00:41:41,680
Speaker 1: much as they do, or whatever it is, and be

853
00:41:41,719 --> 00:41:43,759
Speaker 1: as passionate as they are about whatever it is they're

854
00:41:43,800 --> 00:41:46,880
Speaker 1: passionate in. She's given up so much to do that,

855
00:41:47,080 --> 00:41:49,880
Speaker 1: and so the actual dollar value attached to that seems

856
00:41:50,000 --> 00:41:53,440
Speaker 1: like it's not anything, but is in reality huge.

857
00:41:53,920 --> 00:41:56,920
Speaker 3: How is that valued in the industry? How do you

858
00:41:56,920 --> 00:42:00,800
Speaker 3: measure anything right a piece of string?

859
00:42:00,880 --> 00:42:03,120
Speaker 1: I mean, even if you're talking about someone who actually

860
00:42:03,200 --> 00:42:06,759
Speaker 1: works full time, what you come up with is the

861
00:42:06,800 --> 00:42:09,720
Speaker 1: right amount of cover for that person versus what another

862
00:42:09,760 --> 00:42:12,880
Speaker 1: financial planner comes up with, they can actually look completely

863
00:42:12,920 --> 00:42:17,120
Speaker 1: different because it's it's all up to that person and

864
00:42:17,160 --> 00:42:20,120
Speaker 1: the discussion that's taken place between you and that person

865
00:42:20,200 --> 00:42:22,440
Speaker 1: to get to that figure in the first place.

866
00:42:22,520 --> 00:42:24,600
Speaker 3: So that was actually something that I used to jump

867
00:42:24,680 --> 00:42:27,080
Speaker 3: up and down about when I entered the industry. And

868
00:42:27,160 --> 00:42:29,600
Speaker 3: I think you've heard this from me before. Actually, Emily,

869
00:42:29,680 --> 00:42:31,640
Speaker 3: I've called you a number of times. I'm like, cool,

870
00:42:31,680 --> 00:42:34,279
Speaker 3: so what's the methodology? How do I value this? And

871
00:42:34,320 --> 00:42:37,760
Speaker 3: You're like, that's not how this works. And I've called

872
00:42:37,920 --> 00:42:41,879
Speaker 3: so many other insurers to get just an outline of Okay, well,

873
00:42:41,920 --> 00:42:43,920
Speaker 3: where's the metrics? How do I measure things like what

874
00:42:44,120 --> 00:42:47,840
Speaker 3: standard practice? And across the industry that doesn't seem to exist.

875
00:42:47,880 --> 00:42:50,160
Speaker 3: It's more in the hands of advisors to use their

876
00:42:50,200 --> 00:42:52,320
Speaker 3: initiative and understanding.

877
00:42:51,719 --> 00:42:54,600
Speaker 1: Of the cost of life to val the values of

878
00:42:54,640 --> 00:42:57,160
Speaker 1: the person that you're talking to, because you'll talk to

879
00:42:57,200 --> 00:43:00,920
Speaker 1: a client and that client might value something their lifestyle

880
00:43:01,040 --> 00:43:04,160
Speaker 1: more than something else, and if you can bring that

881
00:43:04,239 --> 00:43:07,240
Speaker 1: out of them, then that's what usually then drives forward.

882
00:43:07,280 --> 00:43:10,319
Speaker 1: Will when I'm calculating how much insurance you need, you

883
00:43:10,400 --> 00:43:13,080
Speaker 1: told me this was really important to you, and so

884
00:43:13,280 --> 00:43:15,000
Speaker 1: when I've come up with these figures, that's how I

885
00:43:15,040 --> 00:43:15,399
Speaker 1: got there.

886
00:43:15,520 --> 00:43:20,200
Speaker 3: Yeah, absolutely, yeah, absolutely, everybody listening to this episode of

887
00:43:20,239 --> 00:43:22,520
Speaker 3: Sheese on the Money knows that my favorite type of

888
00:43:22,600 --> 00:43:25,960
Speaker 3: insurance is income protection. I know that's a shared love

889
00:43:26,000 --> 00:43:30,680
Speaker 3: of ours, though, So can you maybe, like we've defined

890
00:43:30,719 --> 00:43:33,520
Speaker 3: already on this episode what income protection is, so we

891
00:43:33,520 --> 00:43:35,279
Speaker 3: don't need to talk about that, but can you maybe

892
00:43:35,320 --> 00:43:38,200
Speaker 3: talk a little bit more pragmatically to the value of

893
00:43:38,320 --> 00:43:42,080
Speaker 3: income protection and how you see that implemented across the board,

894
00:43:42,200 --> 00:43:43,840
Speaker 3: probably more specifically for women.

895
00:43:43,880 --> 00:43:46,520
Speaker 1: But what does that look like to you? Yeah, I

896
00:43:46,520 --> 00:43:50,320
Speaker 1: mean income protection. You're right, it's like my most highly

897
00:43:50,480 --> 00:43:55,200
Speaker 1: valued insurance as well with such nerds. Yeah, to the

898
00:43:55,280 --> 00:43:57,959
Speaker 1: extent that you know, I've had my income protection poler

899
00:43:58,000 --> 00:44:00,640
Speaker 1: SIN since I was twenty one and and that's a

900
00:44:00,680 --> 00:44:03,719
Speaker 1: really long time ago now, but if you spoke look

901
00:44:03,760 --> 00:44:07,560
Speaker 1: at guys, if you spoke to most twenty one year olds,

902
00:44:07,600 --> 00:44:09,680
Speaker 1: they don't have income protection, right.

903
00:44:09,960 --> 00:44:12,560
Speaker 3: So, but there's so much value in getting it early.

904
00:44:12,480 --> 00:44:16,040
Speaker 1: Right, absolutely. You know, I got my policy when I

905
00:44:16,080 --> 00:44:19,440
Speaker 1: was young. I had no health events that had happened

906
00:44:19,480 --> 00:44:21,720
Speaker 1: to me at that point, so it was really easy

907
00:44:21,760 --> 00:44:25,919
Speaker 1: to get I locked away my premiums on something that's

908
00:44:25,920 --> 00:44:28,920
Speaker 1: called a level premium, and I am absolutely reaping the

909
00:44:28,960 --> 00:44:32,040
Speaker 1: rewards of that today because I am definitely much older

910
00:44:32,040 --> 00:44:35,160
Speaker 1: than I was back then, and even though my income

911
00:44:35,200 --> 00:44:38,279
Speaker 1: has changed a few times over those years, it's been

912
00:44:38,360 --> 00:44:40,840
Speaker 1: really easy just to increase it as I needed to,

913
00:44:41,239 --> 00:44:43,399
Speaker 1: because the bulk of it had already been taken care

914
00:44:43,480 --> 00:44:45,920
Speaker 1: of when I was so much younger and healthier than

915
00:44:45,960 --> 00:44:48,759
Speaker 1: I am right now. I actually had a conversation with

916
00:44:48,840 --> 00:44:49,360
Speaker 1: my friend.

917
00:44:50,239 --> 00:44:51,280
Speaker 3: She's a school teacher.

918
00:44:51,280 --> 00:44:53,839
Speaker 1: She's a secondary school teacher, and when she got her

919
00:44:53,880 --> 00:44:56,960
Speaker 1: full time position at her first school, I sat down

920
00:44:56,960 --> 00:44:58,279
Speaker 1: with her and I said, look, you know that I

921
00:44:58,320 --> 00:44:59,320
Speaker 1: work in this industry.

922
00:45:00,040 --> 00:45:00,719
Speaker 3: This is how the.

923
00:45:00,680 --> 00:45:03,640
Speaker 1: Products work, and I am going to tell you, as

924
00:45:03,640 --> 00:45:06,440
Speaker 1: a friend, this is something you should consider and it's

925
00:45:06,520 --> 00:45:08,560
Speaker 1: up to you whether you want to do something about it.

926
00:45:08,600 --> 00:45:11,400
Speaker 1: But I want to have this conversation with you now

927
00:45:11,480 --> 00:45:13,600
Speaker 1: so that I can feel rest assured that we had

928
00:45:13,640 --> 00:45:16,359
Speaker 1: this conversation at some point and she said to me, oh,

929
00:45:16,400 --> 00:45:19,239
Speaker 1: you know, but I've only just started working and that's

930
00:45:19,320 --> 00:45:23,120
Speaker 1: the point exactly. And I said to her, I was like, okay,

931
00:45:23,200 --> 00:45:26,359
Speaker 1: let me rephrase this for you. You haven't lived at

932
00:45:26,360 --> 00:45:29,399
Speaker 1: home now for how long do you think you could

933
00:45:29,440 --> 00:45:32,440
Speaker 1: live at home with your mum again? And she just

934
00:45:32,440 --> 00:45:35,839
Speaker 1: looked at me and went nuh. And I said, would

935
00:45:35,880 --> 00:45:38,160
Speaker 1: that be the option if something happened at this point?

936
00:45:38,200 --> 00:45:39,759
Speaker 1: And she went yeah, OK.

937
00:45:39,920 --> 00:45:43,200
Speaker 3: And that's what did a force to think, right. I

938
00:45:43,280 --> 00:45:46,760
Speaker 3: have had clients come into the office and they're saying, look, Victoria,

939
00:45:46,840 --> 00:45:49,600
Speaker 3: it's now a priority to me. I've had this back issue.

940
00:45:49,640 --> 00:45:51,759
Speaker 3: I don't want to be I don't want to be

941
00:45:51,800 --> 00:45:54,600
Speaker 3: at risk again. It's like, oh, it's a pre existing

942
00:45:54,719 --> 00:45:57,279
Speaker 3: back issue. I can't cover that. I can't give you

943
00:45:57,320 --> 00:46:01,279
Speaker 3: insurance for something that's already happened. And it's often heartbreaking

944
00:46:01,360 --> 00:46:04,719
Speaker 3: because the issue that they are experiencing is quite debilitating

945
00:46:05,239 --> 00:46:07,160
Speaker 3: and they're just trying to do the best thing for them,

946
00:46:07,200 --> 00:46:10,200
Speaker 3: the best thing for their family, but that ongoing issue

947
00:46:10,239 --> 00:46:13,120
Speaker 3: is now no longer able to be covered, and that's

948
00:46:13,640 --> 00:46:16,840
Speaker 3: just really terrible. Yeah. So I was watching one of

949
00:46:16,880 --> 00:46:18,000
Speaker 3: the morning shows the other day.

950
00:46:18,000 --> 00:46:21,040
Speaker 1: I don't remember specifically which one, but there was a

951
00:46:21,080 --> 00:46:23,920
Speaker 1: little piece they were doing on go fund me, and

952
00:46:24,000 --> 00:46:27,840
Speaker 1: how people use go fund me now is a way

953
00:46:27,920 --> 00:46:32,160
Speaker 1: to essentially fundraise for themselves to do things. The unfortunate

954
00:46:32,239 --> 00:46:34,520
Speaker 1: thing I think I see all too often in my

955
00:46:34,600 --> 00:46:39,160
Speaker 1: Facebook feed is people they're sick that have got go

956
00:46:39,320 --> 00:46:42,439
Speaker 1: fund me pages so they can try and get through this.

957
00:46:43,440 --> 00:46:46,759
Speaker 1: If you've got trauma cover in place, you don't need

958
00:46:46,800 --> 00:46:48,080
Speaker 1: to worry about go fund me.

959
00:46:48,600 --> 00:46:50,200
Speaker 3: Yeah, you don't need to reach out.

960
00:46:50,120 --> 00:46:52,600
Speaker 1: To your family and friends and say, look, I'm experiencing

961
00:46:52,600 --> 00:46:55,960
Speaker 1: this really horrible time and I need your help. You

962
00:46:56,000 --> 00:46:59,279
Speaker 1: don't have to rely on the generosity of others to

963
00:46:59,360 --> 00:47:01,680
Speaker 1: try and help you through that period of time because

964
00:47:01,680 --> 00:47:02,880
Speaker 1: you've got things taken care of.

965
00:47:03,280 --> 00:47:06,480
Speaker 3: I know someone who has recently had a heart attack,

966
00:47:06,920 --> 00:47:10,040
Speaker 3: and that sounds terrible, and it absolutely was. It was

967
00:47:10,080 --> 00:47:14,320
Speaker 3: an incredibly traumatic experience. However, they had their trauma insurance

968
00:47:14,400 --> 00:47:17,600
Speaker 3: in place. They were also in the CBD when this

969
00:47:17,680 --> 00:47:20,200
Speaker 3: hard attack happened, so they got to the hospital really

970
00:47:20,280 --> 00:47:23,240
Speaker 3: quickly and they were actually in and out of hospital

971
00:47:23,360 --> 00:47:25,520
Speaker 3: in twenty four hours. They were back at home and

972
00:47:25,560 --> 00:47:28,000
Speaker 3: they were literally back at work. I did not advise this,

973
00:47:28,120 --> 00:47:30,160
Speaker 3: but they were back at work in three business days.

974
00:47:30,640 --> 00:47:32,719
Speaker 3: And so for me, that would have been a death

975
00:47:32,800 --> 00:47:36,080
Speaker 3: sentence even ten fifteen years ago. But now we are

976
00:47:36,120 --> 00:47:38,880
Speaker 3: surviving these things. And he got his full trauma payout,

977
00:47:38,880 --> 00:47:41,560
Speaker 3: which was a couple of one hundred thousand dollars when

978
00:47:41,560 --> 00:47:43,440
Speaker 3: he was back at work by Friday.

979
00:47:43,640 --> 00:47:45,360
Speaker 1: And that's not the first story I've heard of that

980
00:47:45,480 --> 00:47:49,800
Speaker 1: exact thing. I've heard more than one story where clients

981
00:47:49,840 --> 00:47:54,560
Speaker 1: have had something significant happen to them like that, and that, Yeah,

982
00:47:54,560 --> 00:47:57,360
Speaker 1: when these products were designed, you would have to crack

983
00:47:57,440 --> 00:48:00,840
Speaker 1: someone's chest open to fix that problem. You can have

984
00:48:00,840 --> 00:48:03,360
Speaker 1: it done in a day procedure now literally.

985
00:48:03,719 --> 00:48:06,560
Speaker 3: Yeah, And it's something that our Facebook community has been

986
00:48:06,600 --> 00:48:10,520
Speaker 3: talking about more recently. We had a lovely woman post

987
00:48:11,040 --> 00:48:14,480
Speaker 3: this week actually and talk about how she'd broken her

988
00:48:14,560 --> 00:48:18,279
Speaker 3: leg but had specific event insurance on top of her

989
00:48:18,560 --> 00:48:21,560
Speaker 3: income protection, and she broke her leg and she walked

990
00:48:21,560 --> 00:48:24,319
Speaker 3: away with twenty five thousand dollars paid off her car

991
00:48:24,440 --> 00:48:27,839
Speaker 3: loan and was still going to work with a broken leg.

992
00:48:28,080 --> 00:48:31,280
Speaker 3: And whilst that's awful, I think that we don't actually

993
00:48:31,360 --> 00:48:33,040
Speaker 3: think of the events that could happen to us that

994
00:48:33,040 --> 00:48:34,880
Speaker 3: we could actually claim on that put us in a

995
00:48:34,880 --> 00:48:38,279
Speaker 3: better financial position. And whilst you don't get insurance to

996
00:48:38,320 --> 00:48:40,960
Speaker 3: be in a better financial position is to maintain it.

997
00:48:40,960 --> 00:48:43,239
Speaker 3: It's also well, why wouldn't you want to be in

998
00:48:43,239 --> 00:48:46,239
Speaker 3: a position or if something pretty terrible happens to you,

999
00:48:46,520 --> 00:48:50,160
Speaker 3: at least you're not stressing about money. Absolutely, So, Emily,

1000
00:48:50,400 --> 00:48:52,920
Speaker 3: you mentioned at the start of our chat that you

1001
00:48:52,960 --> 00:48:55,839
Speaker 3: work in the life insurance space and we haven't even

1002
00:48:55,840 --> 00:48:59,640
Speaker 3: spoken about life insurance yet. So as much as life

1003
00:48:59,640 --> 00:49:03,080
Speaker 3: insurance is very straightforward, there are a heap of things

1004
00:49:03,080 --> 00:49:05,719
Speaker 3: in this space that we should be talking about. So

1005
00:49:05,800 --> 00:49:08,000
Speaker 3: tell me a little bit more about your experience of

1006
00:49:08,040 --> 00:49:08,720
Speaker 3: life insurance.

1007
00:49:08,880 --> 00:49:10,920
Speaker 1: Yeah, so, I guess the first thing I have to

1008
00:49:10,960 --> 00:49:14,520
Speaker 1: say is that although it's called life cover or death cover,

1009
00:49:15,400 --> 00:49:18,239
Speaker 1: it's got lots of different dramatics. It is right, you

1010
00:49:18,280 --> 00:49:21,080
Speaker 1: can actually still be alive when it gets paid.

1011
00:49:21,280 --> 00:49:23,960
Speaker 3: Yes, but it has to be very serious yet to

1012
00:49:24,000 --> 00:49:24,400
Speaker 3: be paid.

1013
00:49:24,440 --> 00:49:28,040
Speaker 1: So yeah, so if you're deemed to be terminally ill,

1014
00:49:28,640 --> 00:49:30,959
Speaker 1: you can have it paid to you before it gets

1015
00:49:31,000 --> 00:49:33,919
Speaker 1: to the point where you're not around anymore. Now that's

1016
00:49:33,920 --> 00:49:36,880
Speaker 1: different to again when it was first designed, because you

1017
00:49:37,000 --> 00:49:39,120
Speaker 1: got it paid when you died and it was left

1018
00:49:39,160 --> 00:49:42,560
Speaker 1: to your beneficiaries. But now it can actually be there

1019
00:49:42,600 --> 00:49:46,120
Speaker 1: to help you on that journey of getting to that

1020
00:49:46,239 --> 00:49:49,040
Speaker 1: point with your friends and family. So, Emily, when getting

1021
00:49:49,040 --> 00:49:51,640
Speaker 1: life insurance, what is the most important thing to tell

1022
00:49:51,680 --> 00:49:53,360
Speaker 1: your advisor or insurance company.

1023
00:49:53,560 --> 00:49:54,960
Speaker 3: It's so so.

1024
00:49:54,800 --> 00:49:57,560
Speaker 1: Important that when you're going through that process to disclose

1025
00:49:57,640 --> 00:50:01,200
Speaker 1: everything you know about what they're asking about, because it's

1026
00:50:01,239 --> 00:50:04,960
Speaker 1: important why they're asking those questions, because once that insurance

1027
00:50:05,680 --> 00:50:09,359
Speaker 1: contract is in place, you want the safety. That's what

1028
00:50:09,440 --> 00:50:11,400
Speaker 1: you got it for, and you want the security of

1029
00:50:11,440 --> 00:50:13,320
Speaker 1: knowing that if something happened to you, you're going to

1030
00:50:13,360 --> 00:50:16,200
Speaker 1: be okay. But if for some reason you went weah,

1031
00:50:16,280 --> 00:50:18,240
Speaker 1: they don't need to know that even though they asked

1032
00:50:18,239 --> 00:50:20,480
Speaker 1: me about it. All of a sudden, when you should

1033
00:50:20,520 --> 00:50:23,840
Speaker 1: be having lots of peace of mind because you've taken

1034
00:50:23,880 --> 00:50:26,880
Speaker 1: care of this early on, it's now becoming a burden

1035
00:50:27,280 --> 00:50:30,200
Speaker 1: and you're sick or injured or something's happened to you.

1036
00:50:30,239 --> 00:50:31,319
Speaker 1: That's quite significant.

1037
00:50:31,480 --> 00:50:34,120
Speaker 3: Yeah, And if they find out that you haven't disclosed

1038
00:50:34,200 --> 00:50:37,120
Speaker 3: something that you had a pre existing history of, they'll

1039
00:50:37,160 --> 00:50:39,520
Speaker 3: just cancel your cover. They won't actually pay out on

1040
00:50:39,600 --> 00:50:41,440
Speaker 3: any of that. So you're not putting yourself in a

1041
00:50:41,440 --> 00:50:44,480
Speaker 3: better position by saying, oh, I am a smoker. I

1042
00:50:44,560 --> 00:50:46,960
Speaker 3: probably don't want to tell them I'm a smoker and

1043
00:50:47,040 --> 00:50:49,840
Speaker 3: I tick the wrong box on purpose. They'll never know.

1044
00:50:50,280 --> 00:50:53,600
Speaker 3: They will know they find out that's it exactly well.

1045
00:50:53,600 --> 00:50:57,040
Speaker 3: This has been incredibly insightful I love talking about insurance.

1046
00:50:57,080 --> 00:50:59,480
Speaker 3: As you already know, I was so excited to sit

1047
00:50:59,520 --> 00:51:02,640
Speaker 3: down with you today. What is one thing that you

1048
00:51:02,680 --> 00:51:05,200
Speaker 3: would want people listening to this episode of She's on

1049
00:51:05,239 --> 00:51:08,359
Speaker 3: the Money to walk away with knowing about insurance. Oh,

1050
00:51:08,520 --> 00:51:09,920
Speaker 3: that's a really tough question.

1051
00:51:10,200 --> 00:51:16,000
Speaker 1: I am so passionate about insurance because I have heard

1052
00:51:16,000 --> 00:51:19,240
Speaker 1: too many and seen too many situations where people didn't

1053
00:51:19,280 --> 00:51:21,719
Speaker 1: have it, and just what kind of an effect not

1054
00:51:21,800 --> 00:51:25,760
Speaker 1: even just financially, but emotionally that can have on perhaps

1055
00:51:25,800 --> 00:51:29,040
Speaker 1: the people around you or even the people you left behind.

1056
00:51:29,760 --> 00:51:31,920
Speaker 3: So if there's anything it's that.

1057
00:51:31,840 --> 00:51:34,920
Speaker 1: You should absolutely consider it that if you can get it,

1058
00:51:35,000 --> 00:51:36,799
Speaker 1: you should get it and get as much of it

1059
00:51:36,840 --> 00:51:39,080
Speaker 1: as you can possibly get as early as you can

1060
00:51:39,120 --> 00:51:42,200
Speaker 1: possibly get it, because you just don't want to be

1061
00:51:42,320 --> 00:51:46,080
Speaker 1: that person who's another statistic that needed help and didn't

1062
00:51:46,080 --> 00:51:48,439
Speaker 1: have it and now they're stuck in a rut.

1063
00:51:51,560 --> 00:51:53,400
Speaker 2: Sadly, that is all we have time for on the

1064
00:51:53,400 --> 00:51:56,440
Speaker 2: podcast today, But just before we head off, let's wrap

1065
00:51:56,560 --> 00:51:59,680
Speaker 2: the boring but important stuff. The advice shed on She's

1066
00:51:59,719 --> 00:52:01,719
Speaker 2: on the Money is general in nature and does not

1067
00:52:01,760 --> 00:52:05,280
Speaker 2: consider your individual circumstances. She's on the Money exists purely

1068
00:52:05,320 --> 00:52:08,080
Speaker 2: for educational purposes and should not be relied upon to

1069
00:52:08,080 --> 00:52:11,880
Speaker 2: make an investment or financial decision. Oh and yes, don't worry,

1070
00:52:12,040 --> 00:52:16,320
Speaker 2: we promise. Victoria define is an authorized representative of Consultant

1071
00:52:16,360 --> 00:52:20,680
Speaker 2: Financial Advisors Propriety Limited ABN sixty five double zero six

1072
00:52:20,800 --> 00:52:23,719
Speaker 2: three seven three double nine to five AFSL two three

1073
00:52:23,800 --> 00:52:26,399
Speaker 2: zero three two three. And thank you to our friend

1074
00:52:26,520 --> 00:52:28,680
Speaker 2: Ryan John for helping us produce this episode.

1075
00:52:28,760 --> 00:52:30,879
Speaker 3: We would love it if you joined our Facebook group,

1076
00:52:30,880 --> 00:52:34,120
Speaker 3: where our community shares money tips and tricks every single day,

1077
00:52:34,160 --> 00:52:36,840
Speaker 3: free of judgment. So She's on the Money on Facebook

1078
00:52:36,840 --> 00:52:39,239
Speaker 3: and join us. If Facebook's not your thing, or you

1079
00:52:39,280 --> 00:52:41,279
Speaker 3: want to find us on both, you can find us

1080
00:52:41,280 --> 00:52:43,080
Speaker 3: on Instagram at She's on the Money.

1081
00:52:43,120 --> 00:52:45,359
Speaker 2: Thanks so much for listening, guys, See you next week,

1082
00:52:45,440 --> 00:52:46,279
Speaker 2: See you next week.