June 21 is a day when apples aren’t just apples, but are a symbol of something much greater – the fight against bowel cancer.

Red Apple Day is an initiative of Bowel Cancer Australia – an organisation started by a team of cancer specialists in 2000 with the aim of raising awareness of bowel cancer, also known as colorectal cancer. The organisation is devoted to bowel cancer prevention, early diagnosis, quality treatment and care, and funding research into the disease.

Bowel cancer claims the lives of thousands of Australians each year, and we can all help in the fight against this disease by purchasing a bowel cancer awareness ribbon and apple pin on June 21.

A few facts about bowel cancer

Government statistics show that bowel cancer is the second leading cause of cancer deaths in Australia after lung cancer. It’s expected that in 2017, there will be more than 16,500 new cases of bowel cancer (comprising approximately 9,000 males and 7,500 females), and more than 4,000 deaths from the disease.

According to the Victorian Government’s Better Health Channel, bowel cancers are more common in people over 50, but younger people may also develop the disease. It occurs when polyps – small lumps in the colon or rectum – become cancerous.

What are some of the potential risk factors and symptoms?

Better Health states that the risk factors include age (being over 50), a family history of the disease, an incidence of inflamed colon lining for more than eight to 10 years, a diet high in red processed meat, a high alcohol intake, tobacco smoking, and being overweight.

Symptoms can include blood or mucous in the faeces, unexpected changes in bowel habits, abdominal cramps, tiredness, weakness and pallor. These symptoms may not necessarily signify bowel cancer, but according to Better Health, those who experience one or more of the symptoms should visit their doctor for a review and check up.

The treatment of bowel cancer includes chemotherapy, radiotherapy, immunotherapy, surgery to remove the affected area of the bowel, and also medications to relieve pain.

Bowel cancer detection and prevention

The good news is that bowel cancers are largely curable if detected and diagnosed early. In Australia, free screenings are provided to those over age 50 in the form of kits provided by the National Bowel Cancer Screening Program. Diagnosis may also be carried out through rectal exams, colonoscopy, ultrasound, MRI scan, and blood tests.

When it comes to prevention, there are a few things besides regular screenings that may help in reducing the risk levels for bowel cancer. According to the Better Health Channel, these include having a healthy diet (one that includes plenty of vegetables and fruit and moderate levels only of red meat), limiting processed meats, maintaining a healthy weight, regular exercise, quitting smoking and reducing alcohol consumption.

Bowel cancer and the importance of Life Insurance

When you apply for a fully underwritten Life Insurance policy, insurers take into account your overall health profile which includes the pre-disposition to conditions such as cancer. A healthy lifestyle may not only help reduce your risk of diseases such as bowel cancer, but may also mean you pay lower premiums for your Life cover.

If you have dependants and/or financial commitments, it’s important that your Life Insurance is adequate to meet your particular needs. Noble Oak’s Life Insurance policies are all fully underwritten, and are designed to match your individual risk profile and financial needs. Another advantage of fully underwritten cover is that the claims process will always be much faster because all the details of your health and risk factors were reviewed  at the commencement of your cover.  You can find out more about our fully underwritten Life cover by getting in touch with our team.

Please note that the information we provide is not advice but general information only.  Please refer to our PDS for more information on our product terms.

Sources:

Bowel Cancer Australia, Red Apple Day, viewed 29 May 2017

Cancer Australia, Bowel Cancer (Colorectal cancer) in Australia, viewed 29 May 2017

Victorian State Government Better Health Channel, Bowel Cancer, viewed 29 May 2017

Australian Government Department of Health, National Bowel Cancer Screening Program, viewed 29 May 2017

 

Are you concerned about how your household would keep ticking over if you were unable to work for a while due to a serious illness or accident? Would you have enough savings to keep up with your regular expenses and commitments, such as mortgage or rent payments, school fees, bills, and other loan repayments?

This is where Income Protection Insurance comes in. This type of cover provides a regular payment of up to 75% of your pre-tax income to help you keep up with the payment of your household expenses while you are unable to work.

Income Protection cover is particularly important for people who are self-employed and own and run a business. However, even employees who are able to access paid sick leave could find themselves short of funds once their leave entitlements are used up.

Income Protection Insurance – premium tax deductibility

The other good news regarding Income Protection cover is that the  premiums are generally tax deductible. You  can  claim the cost of your premiums against your income when doing your tax return.

As Income Protection payments are classified as actual income, any benefits received due to a claim situation must also be declared on your tax return, as they will  be subject to income tax.

Rules and exclusions

There are a few guidelines and exceptions to be aware of when it comes to claiming the cost of premiums, such as:

  1. Income Protection policy premiums inside an industry superannuation fund are not deductible, as the cost of the premiums is usually deducted from your super contributions. However, in the case of a self-managed fund (SMSF), the premiums may be deductible.
  2. The premiums payable for policies that provide a lump-sum payment – such as Life Insurance, Trauma or TPD cover, are not tax deductible.
  3. In a combined policy which includes Life and Income Protection cover, only the Income Protection portion of the premiums is deductible.

Noble Oak’s Income Protection Insurance

Noble Oak’s Income Protection cover pays up to 75% of pre-tax income up to a maximum benefit of $25,000 per month ($300,000 per annum). Other features include:

  1. a spousal benefit where your spouse’s income (up to $2,000 per month), will be paid if they need to stop work due to your disablement,
  2. a rehabilitation and/or nursing care benefit,
  3. a choice of waiting periods, and
  4. guaranteed renewability of cover up to age 65.

Noble Oak is  able to keep the costs down on our insurance policies as we do not do  expensive advertising campaigns and we don’t pay any adviser commissions. We pass these cost-savings on to our clients and this makes our premiums much more affordable.

If you have not previously taken out Income Protection cover then give us a call.  As long as this cover is purchased before the end of the financial year, you will then be able to  claim the premiums as a tax deduction in your June 2017 tax return.

Want more information?

If you would like to know more about Noble Oak’s Income Protection cover, contact us to discuss your needs and request a quote.

Please note that the information we provide is not advice but general information only and consult your taxation adviser or accountant for your personal circumstances.  Please refer to our PDS for more information on our product terms.

Sources:

ASIC Money Smart, Income Protection, viewed 25 May 2017

Australian Taxation Office, Income Protection Insurance, viewed 25 May 2017

Have you been diagnosed with diabetes? You’re not alone – figures from Diabetes Australia show this medical condition affects 1.7 million Australians.

It is a serious condition that can cause blindness, result in the amputation of limbs, and even increase the risk of heart attacks and strokes if not managed correctly.

In light of this, you might be wondering if you are still able to obtain Life insurance if you have been diagnosed. The answer is yes.

If you take the right steps to obtain Life insurance you and your family can be covered regardless of your diabetes diagnosis.

What is diabetes?

According to Diabetes Australia, having diabetes means you are unable to maintain healthy glucose levels in the blood because of difficulties with regulating the hormone insulin.

There are three types of diabetes:

  1. gestational diabetes,
  2. type 2 diabetes, which is commonly controlled with dietary changes, and
  3. type 1 diabetes, where sufferers need to inject themselves regularly with insulin.

Alarmingly, there new cases of diabetes developing at a rate of approximately one person every five minutes.

How you can protect your family if your are diagnosed?

Although a diabetes diagnosis may mean that you can’t necessarily purchase a life insurance policy at standard premium rates  your individual circumstances would need to be considered and terms tailored to your personal situation. This means your cover would be fully underwritten and the terms offered would apply to the full term of your cover.

What this means is that your medical history would be fully assessed regarding your diabetic status.

Underwriting means no surprises

Once you have disclosed your health condition, an underwriter will make a detailed assessment of your health and other risks you are facing. The underwriting process means that your Life insurance policy is tailor-made to suit your needs and circumstances.

If your insurer is fully aware of your medical status, in the event that you or your loved ones need to make a claim on the policy, there will be no difficulties in processing it because of what may be considered a ’surprise condition’.

Insurers who do not require you to provide an upfront medical assessment may exclude any claim down the track because of a pre-existing condition which they were not aware of.

Financial peace of mind with NobleOak

Being diagnosed with a serious condition such as diabetes can be devastating. However, it is important that you’re not discouraged from applying for Life insurance to protect your loved ones.

Contact NobleOak today to arrange a Life insurance policy which takes into account your pre-existing medical condition, and gives you and your family peace of mind.

Please note that the information we provide is not advice but general information only.

Sources:

Diabetes Australia 2015, Diabetes in Australia, viewed 20 December 2016

Diabetes Australia 2015, What is Diabetes?, viewed 20 December 2016

The Financial Ombudsman Service 2010, Duty of Disclosure regarding Insurance Contracts, viewed 20 December 2016

FindLaw 2016, Exclusion clauses in insurance policies: what can be excluded?, viewed 20 December 2016

 

Happy loving family

Taking out Life insurance can sometimes seem complex, and you might think having to fill out an upfront health assessment for a policy is a layer of complication you just don’t need.

But could it prove beneficial at claim time?

What is an upfront assessment?

If you apply for any type of Life insurance cover, you’ll be asked to fill out an upfront health assessment.

It’s exactly what it sounds like – a determination of your health and fitness which involves answering questions about your health and medical history. Some insurers may also ask you to undergo medical testing, such as a blood test, depending on your responses.

Some Life insurance companies ask a lot of questions before you take out the policy – and this is called a ‘fully underwritten’ policy. Other insurers ask only a few questions when you apply and these are called ‘limited or partially underwritten’ policies.

There is a third type of policy, called ‘Group Life’ which is a policy taken out by someone such as an employer, covering many people eligible for cover.  Group Life generally has no underwriting, i.e. no questions are asked at the time of application, and therefore there is no ‘underwriting’ of the policy.

How underwriting works

Policies that are “fully underwritten” are tailored to your particular circumstances.

By answering more questions at the time of application, the Life insurance company is better able to consider the viability of the policy, and make an assessment of the potential risk of offering insurance to you. The benefit is generally a better and fairer premium.  Provided you answers the questions correctly there is no further underwriting in the event of a claim.

Policies that are only “partially underwritten”, i.e. only a few medical and lifestyle questions are asked, tend to be more expensive because the insurer has one price covering both good risks and bad risks

Life insurance cover in your superannuation may have “no underwriting” at all i.e. there are no questions to answer initially but there are usually pre-existing condition exclusions on the cover and problems can occur at the time of claim when health and medical questions may be asked. One of the main reasons for a claim to be denied is that the member has a pre-existing condition that is subject to the pre-existing condition exclusion.

Why you need to be honest when answering questions

It is an essential requirement of all insurance policies that you must be completely open and truthful by fully disclosing all relevant matters when applying for cover. A failure to be honest at the time you apply could mean the policy is cancelled or your claim is denied at a later stage. One of the main reasons for a claim to be denied is a pre-existing condition not being disclosed at the time of application

What are the benefits of taking out a “fully underwritten” policy?

Fully underwritten policies generally mean that the claims process will be greatly simplified, and your loved ones will have more certainty because the insurer already has all the necessary information.

Although it is easy to obtain Life insurance which has partial or no underwriting (avoiding any upfront medical assessment) – the result is that your policy may not cover you fully.

In practice, your dependents and loved ones will need to deal with an invasive review of your medical history at claim time – a time of emotional stress and potential financial hardship. If something in your history or the manner of your death is considered significant, there is a chance that your claim entitlement may be significantly reduced or even denied. And you may end up paying more than if you had taken out a fully underwritten policy.

Fully underwritten policies are available through financial advisers who provide advice on the best level and type of cover you need. You can also purchase fully underwritten policies from direct insurers such as NobleOak.

Talk to us if you would like a Life insurance quote. We offer fully underwritten Life covers, and a dedicated claims team to guide the claims process.

Please note that the information we provide is not advice but general information only.  Please refer to the PDS for further information on NobleOak Life Insurance products

Sources:

Lifewise 2012, What is Underwriting?, viewed 21 December 2016

The Financial Ombudsman Service 2010, Duty of Disclosure regarding Insurance ontracts, viewed 21 December 2016 

Macedo L, 2 September 2009, The Role of the Underwriter in Insurance, The World Bank, viewed 21 December 2016

FindLaw 2016, Exclusion clauses in insurance policies: what can be excluded?, viewed 21 December 2016

  

 

 

Happy father child son having fun over sunny evening sunset

 

In order to safeguard yourself and your family against financial stress in the event of an unforeseen medical event or even a death, it’s prudent to hold Life and Trauma cover.

But what happens to your Life insurance if you have suffered from a medical condition and made a Trauma claim? Here is an overview of how Trauma insurance works, and what happens if you hold a combined Life and Trauma policy.

What is Trauma insurance?

Trauma insurance covers you if you suffer a critical illness or trauma that impacts on your life. This can help pay off debts and treatment expenses, or even cover the costs of ongoing therapy.

It operates by providing a lump sum payout which can be used however the claimant chooses – whether by paying medical bills, supporting the family while the claimant is unable to work, or even taking a family trip.

Unlike Life insurance, which pays a lump sum benefit once the policyholder is deceased, Trauma insurance is intended to be paid to the insured whilst they are still living and is designed to assist when the trauma event occurs.

What is a trauma event?

Cardiovascular disease and cancer are two key examples of trauma events. According to the Heart Foundation, cardiovascular disease affects 4.2 million Australians. Figures from the Cancer Council reveal that three in 10 Australians died of cancer in 2013.

As well as cardiovascular disease and cancer, NobleOak’s Trauma insurance covers you for heart attacks, stroke, dementia, coronary bypass surgery, and 34 additional critical conditions.

What happens when you make a claim?

If you’re found to suffer from one of these conditions, then you will be entitled to make a claim on your Trauma policy. When a claim is made and the diagnosis is confirmed by your insurer, you will be entitled to receive the payout.

What are the benefits of Trauma insurance?

When Trauma insurance is combined with Life insurance, you can take out cover (NobleOak offers up to $2 million) to ease the financial burden on you and your family.

The benefit of this is obvious – at a time when you and your loved ones should be focusing on your recovery, you won’t have to worry about the ability to meet your financial obligations.

If the prognosis for your condition is poor, then you may even be able to use the payout to pay off the mortgage or improve your family’s financial position.

What happens to your Life insurance if you make a trauma claim?

There are different options available when taking out Trauma insurance. It can be either a “stand-alone” policy, or combined with Life cover.

If you have taken out a Trauma policy combined with a Life insurance policy and you’ve made a claim, the sum insured for your total policy will be reduced by the amount of the claim payout.

For example, if your total policy (Trauma and Life cover) is worth $2 million and you are paid $500,000, then your beneficiaries will only be entitled to up to $1.5 million at the time of your death.

Obtaining Life and Trauma cover

NobleOak offers Trauma and Life cover as separate or combined policies and can answer any product related questions you have.  We are proud of the cover we offer and recently won the 2016 Strategic Insight Direct Life Insurance Overall Excellence Award.

Talk to us to obtain a quote for the cover that best suits your Life insurance needs.

In the event you do need to make a claim on your policy, our dedicated client claims team is available to guide you through the process.

 

Please note that the information we provide is not advice but general information only. Please refer to the PDS for further information on Trauma insurance.

Sources:

 ASIC MoneySmart 2016, Trauma Cover, viewed 21 December 2016

Heart Foundation, Heart Disease in Australia, viewed 21 December 2016

Cancer Council Australia 2016, Cancer Facts and Figures, viewed 21 December 2016

 

little boy and girl looking at touch pad relaxed at home

 

It might be surprising given that word-of-mouth is such a powerful advertising tool, but people looking for Life insurance products are more likely to ask Google for information than seek recommendations from family and friends.

Our research indicates that around 32.2% of people prefer to seek information on Life insurance online than through their family members (20.4%) or friends (14.6%).

The research also shows that 66.4% of people use websites to compare Life insurance products before purchase, and 52% would use technology (online or a mobile device) to purchase Life insurance and income protection products if they need them.

Why might this be so?

There’s no doubt the internet has transformed our lives immensely by providing us with instant access to information on a massive range of topics. And as long as we use our discernment, most of us can usually differentiate the quality information from the false!

When people are researching financial information and products over the internet, it’s likely that the trust factor has considerable influence. This means that it’s in the best interests of commercial businesses to share relevant and truthful information online.

The results of our other survey questions also reveal that three-quarters of people consider there’s enough information online to enable them to understand the various Life insurance products available to them, and to work out the level of cover they need to match their life circumstances and meet their needs.

What does all this mean?

Well, for a start it does highlight the importance of providing quality and easily-understood information on Life insurance for people to access, so they can check out products, compare policies, and use tools like online calculators. Insurers who provide quality online tools and information will certainly be the winners in this game.

But having access to Life insurance is only the first step – consumers also need to know how much they need, and the various types of products that would suit their life stage.

How we can help

This is something we do at NobleOak, so you can work out the types and levels of insurance you need for Life, Income Protection, Trauma and TPD cover.

Our online calculator allows you to enter personal information and receive a free tailored Life insurance analysis report, which includes your Life insurance needs, cover options, and descriptions of all cover types so you can choose the right ones.

This no-obligation 12-page report identifies your insurance gap for any existing cover, and includes insurance package options such as:

1. Essentials – options you really need to have in place, if something were to happen to you.

2. Important needs – covers that are very important for you to have.

3. ‘Nice to have’ – for covers that are not essential but which would certainly be good to have in place.

The benefits of fully-underwritten policies

Our insurance policies are also fully underwritten, which means a full health review is done at the time of application, and extra verification is not usually needed if a claim is lodged. Fully-underwritten policies are usually less costly than those that are only partially underwritten where you don’t have to provide a medical report or take a blood test. They also provide greater security when it comes to making claims.

Looking for cover? Use our online calculator, or contact one of our team of life insurance experts to obtain a no-obligation quote.

Please note that the information we provide is not advice but general information only. Please refer to the relevant PDS for further information.

Source:

NobleOak, Life Insurance in Australia – Consumer Behaviour Transformation, viewed 9 March 2017

 

CommPow partnership

 

NobleOak has partnered with CommPow to provide great value Life insurance to members as well as help raise funds to reinvest in schools.

Consistent Philosophies

One of the contributing factors to entering into this arrangement was the close alignment between CommPow’s philosophy of giving something back to the community and our philosophy of looking after our members and customers.

The Druids

NobleOak was established in 1877 as a Friendly Society, having been formed for the mutual benefit of members, giving support where it was most needed – like helping with sick pay, funeral benefits and the supply of medical attention and medicines. In fact, the origins of NobleOak go back to the Ancient Order of Druids (AOD) whose guiding principles were justice, benevolence and friendship. Today, NobleOak continues to operate within the spirit of the AOD with a genuine desire to better protect Australians and their loved ones.

NobleOak provides award-wining Life insurance cover directly to consumers. This cover is fully underwritten, meaning medical and health information is collected during the application. The benefit is greater certainty at claim time. NobleOak is able to keep the costs of insurance down by not paying adviser commissions passing these savings on to members of CommPow.

Further Information

Further information including the PDS is available at www.nobleoak.com.au or by calling NobleOak on 1300 041 494.

 

Please note that the information we provide is not advice but general information only. Please refer to our PDS for further information.

binoculars_blog_632x355

Know what you’re buying

Life insurance is marketed a lot these days. Daytime TV is flooded with ads, often promoting over-the-phone, easy-to-access cover that doesn’t require a health check or blood test.

These types of policies sold directly can be very convenient.   However they often have limited-underwriting. This means the insurer doesn’t ask many questions at the time you apply nor do you have to provide a health report from your doctor or a blood test.

Sounds easy, right? Normally it is.  But there are some drawbacks to this approach.

When it comes to making a claim, you (or your family member) may need to answer more detailed health questions and supply a report from your doctor. This can slow the process down at a time when you may be emotionally distressed. Sometimes the claim may be declined due to adverse health factors or pre-existing conditions being discovered at the time of claiming.

Cover bought through your superannuation funds is also more likely to have limited- or no-underwriting.

According to an article from IFA, while limited-underwritten insurance is convenient and here to stay, it can often be 120% to 160% more expensive than policies that are fully underwritten, which reflects the higher risk involved.

Policies available through financial advisers and some direct insurers like NobleOak, are fully-underwritten.  While you need to invest more time providing detailed information when you apply, the longer-term benefits include higher quality cover and more certainty when you claim.

Buying through a financial adviser also requires a multipage statement of advice (SOA)  that people often don’t read or understand.

Be informed

To help people avoid making costly mistakes, NobleOak has developed ‘A Guide to Life Insurance’ that looks at the important things people need to know about when taking out Life insurance  or upgrading their cover – all in one place.  It’s written clearly and simply and covers topics such as:

1. the best times to think about taking out cover e.g. marriage, starting a family,

2. the different types of cover available i.e. Life insurance, Income Protection, Trauma and TPD cover,

3. what the options are for buying cover, either direct, in your super or  through an adviser,

4. how much it costs, and

5. making a claim.

A Guide to Life Insurance is available to download free from our website.

Avoid surprises at claim time

NobleOak provides the best of both worlds offering cover direct to consumers that is fully underwritten at the time of application giving more certainty at claim time – and at a lower cost than cover bought direct or through an adviser.

Get in touch with our team if you would like to find out more about our insurance products, and to obtain a quote.

Please note that the information we provide is not advice but general information only.

Mother and daughter kissing at sunset closeup

Being a mum is a most important role,  and unlike most careers, it’s a 24/7 job.  So making mums feel special with a little extra love and attention on Mother’s Day is a lovely way to say thanks. While this might mean a little gift, it should definitely mean doing no housework on the day, and not having to cook meals either!

In Australia, Mother’s Day is often celebrated with breakfast in bed, fancy brunches or picnics, and gifts of flowers, chocolates and special trinkets from the kids. It’s a day to show appreciation for the many things that mothers do.

With this special day fast approaching on May 14, now’s also a good time to take a look at the Life insurance needs of mums, and the value of all that unpaid work, from the household chores to childcare.

Women and insurance

Whether you’re a stay-at-home mum or a working mother, you will no doubt be involved in the joint financial decisions in your  household. Unfortunately, its well known that many women remain considerably underinsured when it comes to Life insurance. Virtually all the research shows that women lag behind men when it comes to having personal insurance, which includes Life Insurance, Income Protection Insurance, and Trauma insurance.

This often occurs because women are more likely than men to be the stay-at-home partner and/or the lower income earner in a household, and couples make the decision to financially cover the partner who earns the most. However, this downplays the significant role that women – whether employed outside the home or not – hold within the family home.

While staying home to take care of the children may not directly bring in revenue, it still has a significant value in financial terms.

For instance, if the stay-at-home parent was not there to perform those important tasks, the other parent may have to pay someone else to do them, which could prove very costly, particularly over the longer term.

The value of unpaid work

According to Pricewaterhouse Coopers (PwC), the total market replacement value of unpaid work in Australia is $565 billion, of which domestic work comprises approximately 23% and childcare 72%.

So while the stay-at-home partner may not think of her (or his) contribution as having financial value, it actually does when you consider that to replace it would require considerable funds. It’s important that couples consider this when looking into securing financial protection through insurance.

So, what sort of insurance should women consider?

Women should consider personal insurance to cover the financial benefits which they provide for their households. These include:

  1. Life Insurance – this cover provides a lump sum payment on the death of the person insured. The funds can pay for the costs of the work being performed by the stay-at-home partner, such as all the domestic duties and childcare. This insurance is also of course important for mums who work either part time or on a full time basis.
  2. Trauma Insurance – this cover provides a lump sum payment in the event of a medical condition occurring, including a heart attack, cancer and stroke.
  3. Income Protection – this cover provides monthly payments of up to 75% of pre-disability income in the event of a serious illness or injury which leads to the Life Insured being unable to work. This cover is particularly important for women who work either full time or part time (minimum 20 hours per week).

To discuss these types of cover for yourself or your partner, please contact our team. You can also try our online calculator to get an idea of how much cover you need for yourself and your family. If you need more information about how life insurance works download A Guide to Life Insurance from our website. But whatever you do, make sure to have a Happy Mother’s Day 2017!

Please note that the information we provide is not advice but general information only. Please refer to the relevant PDS for further information.

Source:

PricewaterhouseCoopers, Understanding the unpaid economy

NobleOak Life Limited ABN 85 087 648 708 AFS Licence 247302 Level 2, 89 York Street, Sydney, NSW, 2000 © 2015 NobleOak Life Limited.

Readers should consider this information having regard to your objectives, financial situation and needs. People who seek to replace an existing life insurance policy should consider their circumstances including continuing the existing cover until the replacement policy is issued and cover confirmed. Readers may contact NobleOak for further general information and a premium quotation and to apply for cover. NobleOak cannot provide readers with advice but our staff may provide general information about the NobleOak life insurance product. Readers should also consider the Product Disclosure Statement (PDS) for the product they are considering. The PDS which sets out the terms and conditions for the insurance cover and consider whether this product is right for you. This is available by calling NobleOak on 1300 041 494 or from www.nobleoak.com.au.

The girl and stuff in the open trunk

Let’s say tomorrow you lost your job, or your work hours were reduced, or your business started to experience a seasonal lull – what expenses would you drop in your life?

We put this very question to 1,000 people in our survey – and here are the results.

How people would cut expenses

Holidays were listed as the number one item that would be dropped, followed by entertainment, health and beauty, then savings and investment plans.

Life insurance came in 5th and income protection insurance 7th, while mortgage payments came in last place (13th) – even behind groceries and electricity bills! Clearly, many people see keeping their homes as a top priority.

Another question on the survey was about the reasons for not having life or income protection cover. Affordability was the most common reason given at 44%, which could indicate that there is a perception that these types of insurance cover are costly.

Why you might need a Plan B

We also asked people to rate their greatest fears. Top of the list was cancer (not surprising), followed by heart attack, car accident, stroke, and premature death.

These tied in with the latest statistics from the ABS which show that heart disease is the highest cause of death in Australia, followed by dementia, stroke, cancer and lower respiratory disease. Car accidents are number six, despite people rating it third amongst their fears.

So overall, you could say the survey results indicate that life insurance and income protection are considered important, but perhaps not the top priority in people’s lives. At the same time, many people also fear getting seriously ill or suffering an accident or premature death.

Insurance gives you a Plan B!

No one likes to dwell on bad things happening, but it’s important to give thought to how you or your family would cope if something did happen to you – such as a serious illness, or debilitating injury.

Rice Warner research shows that many people do not have life insurance or have low levels of cover. Sometimes this may happen because people feel that life insurance won’t fit in their budget, or that it’s not really necessary.

However, being uninsured can leave you unprotected financially if you were unable to work for a period of time. This type of scenario can be particularly concerning for people who have dependents.

Tips on making Life insurance and Income Protection more affordable

If cost is an issue for you, there are some things you can do to save on your premiums:

At NobleOak, we’re able to keep the costs of insurance down by not paying for mass advertising campaigns or adviser commissions, which is good news for our clients. We’ve also provided an online calculator you can use to work out how much cover you need. If you would like to speak to someone from our team, contact us to discuss your needs or to get a quote.

Please note that the information we provide is not advice but general information only. Please refer to our PDS for further information.

Sources:

NobleOak, Life Insurance in Australia – Consumer Behaviour Transformation, viewed 9 March 2017

Australian Bureau of Statistics.  Average annual deaths between 2011 and 2015

Rice Warner, Australia’s Relentless Underinsurance Gap, viewed 9 March 2017

NobleOak Life Limited ABN 85 087 648 708 AFS Licence 247302 Level 2, 89 York Street, Sydney, NSW, 2000 © 2015 NobleOak Life Limited.

Readers should consider this information having regard to your objectives, financial situation and needs. People who seek to replace an existing life insurance policy should consider their circumstances including continuing the existing cover until the replacement policy is issued and cover confirmed. Readers may contact NobleOak for further general information and a premium quotation and to apply for cover. NobleOak cannot provide readers with advice but our staff may provide general information about the NobleOak life insurance product. Readers should also consider the Product Disclosure Statement (PDS) for the product they are considering. The PDS which sets out the terms and conditions for the insurance cover and consider whether this product is right for you. This is available by calling NobleOak on 1300 041 494 or from www.nobleoak.com.au.