Insurance
myths exposed
Our top reasons for ignoring insurance come under fire
The top five misconceptions
we tell ourselves.
1. Workers
Comp will look after me
While Workers Comp might cover you if something
happens at work, the fact is more than 70% of injuries actually
occur when we are not working3.
Neither would Workers Comp cover you for a non-work related illness that requires you to take extended time away from work.
Even if Workers Comp covers you, would it be enough? Other states and industries have their own exemptions and rates, for example, in NSW if you are totally unfit for work, after the first 26 weeks you could be paid in line with the statutory rate which at present is $381.40 per week4.
2. Private
Health Cover will look after me
While Private Health Cover may assist you with medical
bills, how will you continue to pay for your everyday bills,
such as your mortgage, education or living expenses?
Additionally, Private Health Cover won’t cover your
income if you were unable to continue working for a period
of time or indefinitely.
3. I have
enough cover through my superannuation
In most cases you may have cover through your super fund;
however, this is usually a minimum amount that does not
take into consideration your personal or your family’s
requirements. There can also be many traps to consider and
questions to ask before you rely on this option, including:
Does the cover decrease as I get older?
Will the cover continue if I change jobs?
Will my salary continuance cover be enough if my illness
/ injury lasts more than 2 years?
These are only a few examples of the research your Count
adviser will perform to ensure that your cover is right
for you and your family for the long-term.
4. Centrelink
will cover me
The requirements to meet Centrelink benefits are
very strict and the maximum payment is just $281.05 per
week. To receive this you would have to qualify under the
eligibility criteria within Centrelink’s Assets and
Income test. Think of your income now – would you
and your dependants be able to survive on $281.05 or less
per week?
5.
It’s too expensive
Most of us wouldn’t think twice about paying
the premiums to insure our cars or homes. But how many of
us make the same commitment to protect our own lives and
families?
It’s often forgotten that you, not your car, are the source of your own value and wealth.
Using a combination of super and non-super based insurance,
your Count adviser can help you construct an affordable,
yet comprehensive, insurance package that provides you and
your family with an appropriate level of protection.
Remember, your Count adviser will support you even when you need to make a claim. While in some cases insurers can be quite supportive, claim requirements can seem daunting when you already have enough on your plate. At the time of claim, you can contact your Count adviser who will support and guide you through the claims process – giving you and your family more time to focus on what matters – your quality of life! Find out more and speak to your Count adviser as soon as possible. |
 Next: Chairman’s Report: Bulls and bears: Creatures of habit and why it pays to be human |
11 November, 2008->
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