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Personal Insurances 101 · She's On The Money

• 0:00
  Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
• 0:04
  Speaker 1: the Order Kernye Whoalbury and a waddery woman. And before
• 0:08
  Speaker 1: we get started on She's on the Money podcast, I
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  Speaker 1: would like to acknowledge the traditional custodians of the land
• 0:14
  Speaker 1: of which this podcast is recorded on a wondery country,
• 0:18
  Speaker 1: acknowledging the elders, the ancestors and the next generation coming
• 0:22
  Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
• 0:27
  Speaker 1: and the storytelling of you to make a difference for
• 0:30
  Speaker 1: today and lasting impact for tomorrow.
• 0:33
  Speaker 2: Let's get into it.
• 0:34
  Speaker 3: She's on the Money, She's on the Money.
• 0:57
  Speaker 2: Hello, and welcome to She's on the Money the Podcast
• 1:01
  Speaker 2: Millennials who want Financial Freedom. Welcome back to another one
• 1:04
  Speaker 2: of our Wednesday deep dive episodes where I'm usually joined
• 1:07
  Speaker 2: by miss becksay Ed, but there's a different guy in
• 1:11
  Speaker 2: front of me today, Mister Phil Thompson. What gives you
• 1:15
  Speaker 2: the audacity to think that you should be on cheese
• 1:17
  Speaker 2: on the money?
• 1:18
  Speaker 4: I'm beck to, Oh God, you've got.
• 1:20
  Speaker 2: Longer hair than yes. If you don't know the voice,
• 1:22
  Speaker 2: I'm not surprised. It's because we always talk about Phil
• 1:26
  Speaker 2: on the podcast yet, haven't had him on before. Phil
• 1:29
  Speaker 2: is the CEO and director also a financial advisor at
• 1:33
  Speaker 2: Sky Wealth, which if you've heard of before. Again, I'm
• 1:36
  Speaker 2: not surprised because all I do is talk about the
• 1:38
  Speaker 2: importance of life insurance TBD, income protection and making sure
• 1:43
  Speaker 2: that you are protecting your income because to me, that
• 1:46
  Speaker 2: is the biggest asset that you will ever have in
• 1:48
  Speaker 2: your life. And Phil, I thought the end of January,
• 1:52
  Speaker 2: it's now time to give my community and absolutely kick
• 1:55
  Speaker 2: up the pants to get their personal insurances sorted because
• 1:58
  Speaker 2: arguably it's more important now than ever, especially during a
• 2:02
  Speaker 2: cost of living crisis where everybody is so stressed about
• 2:05
  Speaker 2: finances and also we all seem to think that we're
• 2:09
  Speaker 2: a little bit untouchable. Yeah, so Phil TLDR, I want
• 2:14
  Speaker 2: to know what do you do? Why do you do it?
• 2:16
  Speaker 4: Yeah, So we're a financial advice for We just specialize
• 2:19
  Speaker 4: in personal insurance. So that's all we do. So anyone
• 2:21
  Speaker 4: who needs investment advice, touberranuation advice, that's not what we do.
• 2:24
  Speaker 2: You're not the guy.
• 2:25
  Speaker 4: Yeah, we're not the people for that. So we just
• 2:27
  Speaker 4: do personal insurance. We just help people decide how much
• 2:30
  Speaker 4: cover they need, and we work collaboratively with our clients
• 2:33
  Speaker 4: about the level of cover.
• 2:35
  Speaker 2: Just decide how much you need. You also talk about
• 2:38
  Speaker 2: like how important it is and understanding the claiming process
• 2:41
  Speaker 2: and all of the other stuff. I feel like that
• 2:43
  Speaker 2: simplifies it too much. Direct You don't just go, oh
• 2:46
  Speaker 2: you need X, yeah, thank you.
• 2:49
  Speaker 4: We talk about the need. Really, it's just about, like,
• 2:52
  Speaker 4: you know, how much insurance do you need? What are
• 2:54
  Speaker 4: the terms of that policy going to look like? So
• 2:56
  Speaker 4: we'll discuss potential exclusions, loadings, and then we'll talk about cost.
• 3:00
  Speaker 4: At the end of the day, insurance costs money, so
• 3:02
  Speaker 4: it's just about getting that balance between the level of
• 3:04
  Speaker 4: cover that's appropriate and what's an affordable cost.
• 3:07
  Speaker 2: Yeah, and I am really really passionate about personal insurances.
• 3:12
  Speaker 2: I think it's the one thing that you should really
• 3:14
  Speaker 2: be prioritizing. Let's do a really quick basic recap. So
• 3:18
  Speaker 2: we've obviously done episodes on Cheese on the Money before
• 3:20
  Speaker 2: about what personal insurances are, and I have discussed the
• 3:24
  Speaker 2: four main types of personal insurances. Feel that you would write.
• 3:27
  Speaker 2: So we've got life cover, so death insurance basically really
• 3:32
  Speaker 2: easy to claim, Like, let's be honest, pretty simple criteria.
• 3:36
  Speaker 4: Yeah, if you pass away, there are things like terminal illness,
• 3:38
  Speaker 4: So if you've got less than twenty four months to live,
• 3:40
  Speaker 4: you may be able to get that life insurance paid
• 3:42
  Speaker 4: out early.
• 3:43
  Speaker 2: Then we have KEPD, which is total and permanent disability insurance,
• 3:47
  Speaker 2: then trauma insurance, and then we've got income protection, which
• 3:50
  Speaker 2: is arguably my favorite type of insurance. Did you know
• 3:53
  Speaker 2: people have favorite types of insurance or is it just
• 3:56
  Speaker 2: like the people in this room.
• 3:57
  Speaker 4: Right now maybe have favorite type and skegs.
• 4:00
  Speaker 2: Yeah, let's break them down a little bit before we
• 4:03
  Speaker 2: dive into it, because I don't want to assume that
• 4:05
  Speaker 2: everyone is just looking at this going like, oh, great,
• 4:07
  Speaker 2: Phil can help me with my car insurance. That's not
• 4:09
  Speaker 2: what you do. So let's start with arguably my favorite
• 4:13
  Speaker 2: type of insurance, income protection. Why do we need it,
• 4:17
  Speaker 2: what is it, how do we get it? And why
• 4:19
  Speaker 2: should we not just rely on the fact that we
• 4:21
  Speaker 2: have two years cover in our super sometimes.
• 4:24
  Speaker 4: Yeah, income protection is the most important because your incomes
• 4:26
  Speaker 4: are the most important. When everyone thinks about their financial
• 4:29
  Speaker 4: goals and objectives that they want to achieve, they need
• 4:31
  Speaker 4: their income to be able to achieve it, and so
• 4:34
  Speaker 4: we need to be able to protect that income if
• 4:35
  Speaker 4: something bad happened. So a lot of super cover will
• 4:39
  Speaker 4: cover up to two years. And so what that means
• 4:41
  Speaker 4: is if you're injured, ill, sick, can't work for most reasons,
• 4:45
  Speaker 4: then you'll get paid a monthly payment from the insurance
• 4:48
  Speaker 4: provider after that initial waiting period, so you've got to
• 4:52
  Speaker 4: wait a certain amount of time. So it's kind of
• 4:54
  Speaker 4: like car insurance excess. You've got to pay a certain
• 4:56
  Speaker 4: amount with car insurance excess. So that's the waiting period.
• 5:00
  Speaker 4: For that waiting period, you get your monthly payment until
• 5:02
  Speaker 4: you're back at work. So if you're only out of
• 5:04
  Speaker 4: work for six months, then the payments stop once you're
• 5:06
  Speaker 4: back at work. If you can't ever work again, then
• 5:09
  Speaker 4: you'll get paid or up until the benefit period. So
• 5:12
  Speaker 4: most super funds will have a benefit period of only
• 5:15
  Speaker 4: two years, but you can get income protection with a
• 5:17
  Speaker 4: benefit period till age sixty five.
• 5:19
  Speaker 2: I feel like I've had a lot of conversations, especially
• 5:22
  Speaker 2: in my community over the last few years, where people go, oh, well,
• 5:24
  Speaker 2: I only need two years, it'll sort out.
• 5:26
  Speaker 4: Then.
• 5:27
  Speaker 2: Is that the reality of the circumstance, Phil.
• 5:30
  Speaker 4: Yeah, it's really interesting. So most claims are less than
• 5:33
  Speaker 4: two years, so the majority of claims that are paid
• 5:36
  Speaker 4: out finish within two years. However, majority of the money
• 5:39
  Speaker 4: insurance companies pay is for the income protections claims that
• 5:43
  Speaker 4: go over two years. So what that means is statistically
• 5:47
  Speaker 4: you're less likely to need it after two year period,
• 5:49
  Speaker 4: but the majority of the payments that are paid out
• 5:52
  Speaker 4: is for that long term claim. So it's a matter
• 5:55
  Speaker 4: of going, do I want to protect the biggest downside risk,
• 5:58
  Speaker 4: which is I can never work again. So that's what
• 6:01
  Speaker 4: that age sixty five benefit period policy covers the biggest
• 6:05
  Speaker 4: downside risk. If I just want to cover the majority
• 6:08
  Speaker 4: of times I'm going to need it, well, yeah, a
• 6:10
  Speaker 4: two year benefit period's okay, but you're going to lose
• 6:13
  Speaker 4: millions and millions of dollars worth of benefits if you
• 6:15
  Speaker 4: don't have that longer term benefit period policy.
• 6:18
  Speaker 2: And there are a lot of reasons why it's so
• 6:20
  Speaker 2: important to consider the amount of times people are like, oh,
• 6:23
  Speaker 2: but that's okay, Like, you know, if something happens, I'll
• 6:25
  Speaker 2: move back in with my parents for a little while,
• 6:27
  Speaker 2: or you know, don't worry, like I can always apply
• 6:29
  Speaker 2: for sentling. And if you're in a circumstance where your
• 6:33
  Speaker 2: income is essentially equivalent to seniling. I totally understand why
• 6:37
  Speaker 2: you might do that. But phil you're a dad, you've
• 6:41
  Speaker 2: got three beautiful girls, would it be appropriate to not
• 6:44
  Speaker 2: have income protection in your circumstance?
• 6:47
  Speaker 4: No, not at all. I mean, my wife's currently not
• 6:49
  Speaker 4: earning an income and she's trying to write a book
• 6:51
  Speaker 4: and it's amazing. But if I wasn't able to earn
• 6:54
  Speaker 4: an income would be stuffed. So that's why, you know,
• 6:57
  Speaker 4: it's kind of like home insurance. If I've got a
• 6:59
  Speaker 4: home that's where half a million dollars or a mooion dollars,
• 7:01
  Speaker 4: Do I want to cover fifty thousand dollars because most
• 7:04
  Speaker 4: of the claims that only cover fifty thousand dollars? Or
• 7:06
  Speaker 4: do I want to cover the moon dollar house that
• 7:08
  Speaker 4: if it burned down or I could fully replace it.
• 7:12
  Speaker 4: So that's why I'm a big believer in a long
• 7:15
  Speaker 4: benefit period and making sure that you cover the right
• 7:17
  Speaker 4: level of cover for your income.
• 7:19
  Speaker 2: Yeah, I was a little bit cheeky. Obviously, I had
• 7:21
  Speaker 2: the privilege of being a financial advisor when I was younger,
• 7:26
  Speaker 2: ah younger, and so I actually set up my income
• 7:29
  Speaker 2: protection when I was fit and healthy and hadn't had
• 7:33
  Speaker 2: any babies and didn't have a lot of health complications.
• 7:37
  Speaker 2: Should we be setting up our income protection once you know,
• 7:40
  Speaker 2: life gets serious, like we're a dad of three, or
• 7:43
  Speaker 2: should we be doing what Victoria did and set it
• 7:45
  Speaker 2: up when they're young and go, Hm, the policy is
• 7:47
  Speaker 2: a lot cheaper now. It's like, when do we try
• 7:50
  Speaker 2: and talk about income protection?
• 7:52
  Speaker 4: Yeah, I mean it's an interesting conversation. I like to
• 7:55
  Speaker 4: set up early. The earlier you are, the less health
• 7:57
  Speaker 4: complication you have. Generally speaking, so the earlier the better.
• 8:01
  Speaker 4: But also just from a financial point of view, as
• 8:04
  Speaker 4: a twenty five year old, if you've got a full
• 8:06
  Speaker 4: time income, and think about that income, if you couldn't
• 8:10
  Speaker 4: work until a sixty five retirement age, or by the
• 8:12
  Speaker 4: time a twenty five year old gets to retirement, it'd
• 8:14
  Speaker 4: be seventy five. So the long term cost of that
• 8:16
  Speaker 4: loss of income is actually greater for a twenty five
• 8:19
  Speaker 4: year old than it is for a fifty five year old.
• 8:21
  Speaker 4: Even though you may have less financial obligations, you may
• 8:24
  Speaker 4: not have a family yet, you may not have a house.
• 8:27
  Speaker 4: That loss of income is actually much greater. So when
• 8:29
  Speaker 4: we're talking specifically income protection. The earlier the better. When
• 8:33
  Speaker 4: we're talking about things like life insurance, which I'm sure
• 8:35
  Speaker 4: we'll get to, maybe that's not necessary for someone who
• 8:38
  Speaker 4: doesn't have dependence, doesn't have a mortgage. So for income protection,
• 8:42
  Speaker 4: the earlier the better.
• 8:43
  Speaker 2: Yeah, I agree, and I think that's why it's one
• 8:45
  Speaker 2: of my favorite types of insurance, which, honestly, the more
• 8:49
  Speaker 2: I say it, the more I'm like, you're a bit
• 8:50
  Speaker 2: of a loser, Victoria. But it's my favorite type because
• 8:53
  Speaker 2: I think it's applicable across the board, and it's not
• 8:56
  Speaker 2: necessarily one that you can switch on and off. If
• 8:58
  Speaker 2: you have an income, it is a no brainer to
• 9:01
  Speaker 2: me to protect that because how many times do you
• 9:03
  Speaker 2: see people buying new cars and they're so happy to
• 9:06
  Speaker 2: pay for the extra insurance, and they're like, oh no,
• 9:08
  Speaker 2: I wouldn't just get third party, I'd get comprehensive because
• 9:11
  Speaker 2: that's so important. I go, but what about you? What
• 9:14
  Speaker 2: if you can't work? Like if I crash my car tomorrow,
• 9:17
  Speaker 2: Phil and it doesn't have any insurance on it, let's
• 9:20
  Speaker 2: pretend I did pay for third party, because we don't
• 9:21
  Speaker 2: want to implacate anybody else. But I'm out of car,
• 9:25
  Speaker 2: and I'm going to go to work, and I'm going
• 9:26
  Speaker 2: to earn an income and I'm going to save up
• 9:28
  Speaker 2: and buy another car. And it's not the biggest deal
• 9:31
  Speaker 2: in the entire world. Yes, it's a lot of money,
• 9:33
  Speaker 2: and yes it's going to feel like trash not having it,
• 9:36
  Speaker 2: lots of regret. But you know what's worse. If you
• 9:38
  Speaker 2: have a fully functioning car and then somehow you've injured yourself.
• 9:42
  Speaker 2: You can't drive your car, you can't go to work,
• 9:44
  Speaker 2: you can't earn an income, and all of a sudden,
• 9:46
  Speaker 2: the car A payments are unobtainable, You're not able to
• 9:49
  Speaker 2: keep that, you have to move back in with mum
• 9:50
  Speaker 2: and dad, you have to change your lifestyle significantly. And
• 9:54
  Speaker 2: while yes most claims are under two years, if they aren't,
• 9:59
  Speaker 2: you've actually shot yourself in the foot for your entire life.
• 10:02
  Speaker 2: So your goals, your values, what you wanted to achieve
• 10:05
  Speaker 2: in your life, it's just not going to happen in
• 10:08
  Speaker 2: the same way. Whereas I look at income protection and go, well,
• 10:11
  Speaker 2: it's not just income protection, it's kind of like life
• 10:14
  Speaker 2: and goal and value protection. Because if something happened to
• 10:18
  Speaker 2: me and I can't work every again, well, at least
• 10:21
  Speaker 2: I get to kind of have the lifestyle within the
• 10:24
  Speaker 2: breadths of my illness that I really want to have,
• 10:27
  Speaker 2: and I'm not constricted by the fact that now I
• 10:30
  Speaker 2: basically have to be centrally. Can I just go from
• 10:33
  Speaker 2: hypothetically earning eighty or ninety thousand dollars a year down
• 10:36
  Speaker 2: to forty thousand dollars a year and scrimping by And
• 10:40
  Speaker 2: it's a situation I didn't technically have to put myself in.
• 10:43
  Speaker 2: So I'm wildly passionate about it, mainly because I'm very
• 10:46
  Speaker 2: black and white. I'm like, it just makes sense, guys.
• 10:50
  Speaker 4: The other thing I was going to say is a
• 10:52
  Speaker 4: lot of people come and say, well, I've got some
• 10:54
  Speaker 4: work cover, work cover will pay me. The great thing
• 10:56
  Speaker 4: about income protection you can be traveling overseas and injure
• 10:59
  Speaker 4: yourself still be eligible for a claim of fair income protection.
• 11:02
  Speaker 4: You can be at home looking after the kids and
• 11:04
  Speaker 4: you know, pull your back because you're playing with the
• 11:06
  Speaker 4: kids like I do every second week.
• 11:08
  Speaker 2: It feels like, yeah, I still feel like that, and you.
• 11:12
  Speaker 4: Can claim when you're income protection. So with the income protection,
• 11:15
  Speaker 4: not like work cover, work cover, you need to prove
• 11:17
  Speaker 4: that it was a workplace injury before you'll get paid
• 11:20
  Speaker 4: any work cover income protection. It really doesn't matter how
• 11:23
  Speaker 4: it happened or what happened. It's just a matter of
• 11:26
  Speaker 4: can you work or not. If you can't work and
• 11:29
  Speaker 4: you meet the definitions of the policy, then you get
• 11:32
  Speaker 4: paid out income protection.
• 11:33
  Speaker 2: So I feel like insurance is something that a lot
• 11:36
  Speaker 2: of us just go this happens to other people, not
• 11:39
  Speaker 2: to me, or this is something that just isn't going
• 11:41
  Speaker 2: to happen. I'm fit, I'm healthy. I've shared on the
• 11:44
  Speaker 2: podcast before that I had to do an income protection
• 11:48
  Speaker 2: claim a while ago. For I would say friend, they're
• 11:51
  Speaker 2: now a friend because I've exited the industry. But just
• 11:54
  Speaker 2: like somehow managed to keep him as a pow. But
• 11:57
  Speaker 2: he was the fittest, healthiest guy I ever met. Like
• 12:00
  Speaker 2: you know the guy that gets up at like five
• 12:02
  Speaker 2: am so they can cycle for two and a half
• 12:04
  Speaker 2: hours before work. Can you just be like the red Yeah,
• 12:07
  Speaker 2: like the boy, like he was crazy, Like his diet
• 12:10
  Speaker 2: was immaculate. Like every time we went to the beach,
• 12:13
  Speaker 2: I'd be like, nobody else is going to be happy
• 12:15
  Speaker 2: wearing swimsuit around you mate, Like you are putting us
• 12:18
  Speaker 2: all to shame. He got hit by bus and he's
• 12:22
  Speaker 2: fine now, so it's okay. But he was riding the
• 12:26
  Speaker 2: same path that he rode every other morning because, as
• 12:29
  Speaker 2: I said, happy like her guy, he got hit by
• 12:32
  Speaker 2: a literal bus and broke his pelvis in like four
• 12:35
  Speaker 2: different places. Couldn't go to work, you know, had a
• 12:39
  Speaker 2: whole heap of other broken bones as well, but in
• 12:42
  Speaker 2: addition to that, had a whole heap of spinal injuries
• 12:45
  Speaker 2: that needed long term support for and he's still on
• 12:49
  Speaker 2: income protection because he cannot go back to work. He
• 12:52
  Speaker 2: was a chippy. What are you going to do at
• 12:54
  Speaker 2: work if you've broken all of your bones and you
• 12:56
  Speaker 2: know you can't stand prolonged periods of time. He could
• 13:00
  Speaker 2: have been completely wiped. And I mean he was a jippy.
• 13:03
  Speaker 2: He was self employed, he had a pretty good income
• 13:06
  Speaker 2: able to prove all of that. And now he's still
• 13:08
  Speaker 2: able to support his family and do exactly what he
• 13:10
  Speaker 2: needs to do. But to me, that was always a
• 13:13
  Speaker 2: really good example of I remember rolling on into work
• 13:16
  Speaker 2: that day, I had a coffee in my hand, and
• 13:17
  Speaker 2: I sat down at my desk and like I had
• 13:20
  Speaker 2: a miscall on my phone, and to be honest, hadn't
• 13:22
  Speaker 2: really thought about it, got an email and went, oh,
• 13:26
  Speaker 2: I need to call. Like it was one of those
• 13:28
  Speaker 2: things that even shook me as a financial advisor, because
• 13:31
  Speaker 2: I think sometimes when you're doing things like income protection insurance,
• 13:35
  Speaker 2: it's for illnesses that are prolonged, and often you go, oh,
• 13:40
  Speaker 2: they've been saying they're not being well, or they've been
• 13:42
  Speaker 2: going through testing, or it doesn't come as a shop.
• 13:45
  Speaker 2: But to me, I was like, life is really fragile
• 13:47
  Speaker 2: and really dangerous. Have you had a lot of claims
• 13:50
  Speaker 2: like that?
• 13:51
  Speaker 4: Yeah, I mean most of our claims people wouldn't have
• 13:54
  Speaker 4: thought it happened. We've got you know, a lady who
• 13:56
  Speaker 4: is thirty four had breast cancer four months after her
• 14:00
  Speaker 4: trauma and income protection was put in place, and she
• 14:03
  Speaker 4: was arming and Ring and I looked back. We'd spent
• 14:06
  Speaker 4: like six months working with her kind of you know,
• 14:08
  Speaker 4: trying to work out if the premiers were okay, and
• 14:10
  Speaker 4: she was arming, and Ring finally went ahead and said, oh,
• 14:12
  Speaker 4: I probably don't need this. Four months later was on
• 14:15
  Speaker 4: income protection and got a trauma payment. One of my
• 14:18
  Speaker 4: really really close friends, the first day of the work
• 14:21
  Speaker 4: year last year, gave me a call and he worked
• 14:25
  Speaker 4: in the industry, and I said, I know you're not
• 14:26
  Speaker 4: meant to be working a day, Get off your phone,
• 14:29
  Speaker 4: get off your emails, and he's like, well, it's actually
• 14:31
  Speaker 4: a personal call. I've just found out I've got pancreatic cancer.
• 14:34
  Speaker 4: And so, you know, my first work day of last year,
• 14:37
  Speaker 4: I went to the hospital and he's been on income
• 14:39
  Speaker 4: protection for twelve months, got a trauma payment as well,
• 14:42
  Speaker 4: and the first day of this year, unfortunately, we submitted
• 14:45
  Speaker 4: a terminal illness claim for his life policy, so he
• 14:49
  Speaker 4: got paid his trauma payment, he got twelve months worth
• 14:52
  Speaker 4: of income protection, and now he's getting his life insurance
• 14:55
  Speaker 4: paid out early while he's still around. And for him
• 14:57
  Speaker 4: it's incredibly important. He's got two young boys, just a
• 15:01
  Speaker 4: year younger than two of my oldest girls, and for
• 15:03
  Speaker 4: him it's so important for the money to hit his
• 15:05
  Speaker 4: bank account before he passes away.
• 15:07
  Speaker 2: He knows, he knows.
• 15:10
  Speaker 4: They're going to be comfortable financially and not struggle because
• 15:14
  Speaker 4: his wife isn't working. And so yeah, I mean it's
• 15:18
  Speaker 4: obviously hard to talk about, you know, given you know
• 15:20
  Speaker 4: he's a client but also a really close friend. We've
• 15:22
  Speaker 4: been working together for eight.
• 15:23
  Speaker 2: Years and this happens right, like, and he.
• 15:26
  Speaker 4: Is incredibly fit, Like he is the same guy like
• 15:29
  Speaker 4: to me, I look back and go, well, that's why
• 15:31
  Speaker 4: I don't go to the gym, because because may have
• 15:33
  Speaker 4: banker out of cancer. And so yeah, it's really full
• 15:36
  Speaker 4: on in the work we do helping people with claims.
• 15:39
  Speaker 4: But that's why, like especially this year, it's so important.
• 15:43
  Speaker 4: The work I do is helping people get insurance. And
• 15:46
  Speaker 4: of course it's a cost. All insurance costs money, and
• 15:49
  Speaker 4: it's about strucking that balance which in a level of
• 15:51
  Speaker 4: covering the cost. But some covers better than nothing. Because
• 15:55
  Speaker 4: my good friend, you know, we had a conversation many
• 15:58
  Speaker 4: many times about getting insurance and he worked in the
• 16:00
  Speaker 4: industry and now he's got it and it's getting paid
• 16:02
  Speaker 4: out and it's my massive difference for his.
• 16:05
  Speaker 2: Family that actually kills me. You have been a financial
• 16:08
  Speaker 2: advisor for years and years and years, and I have
• 16:10
  Speaker 2: no NWS since before you were doing just insurance only advice.
• 16:14
  Speaker 2: And I remember how long ago was it that you
• 16:16
  Speaker 2: decided to delve just straight into insurance.
• 16:19
  Speaker 4: Yeah, twenty twenty.
• 16:20
  Speaker 2: Yeah, so I remember you called me and you're like,
• 16:22
  Speaker 2: I'm thinking this model it's going to work. Like and
• 16:24
  Speaker 2: I just remember I think it was like during COVID,
• 16:26
  Speaker 2: I was having these conversations with you about what it
• 16:29
  Speaker 2: looks like and how it was going to work, and
• 16:30
  Speaker 2: I just remember going, you're insane, Like you know, I
• 16:34
  Speaker 2: at the time was a holistic financial advisor, and I
• 16:37
  Speaker 2: was like, I really, you know, like being able to
• 16:40
  Speaker 2: provide the value to the client, to be financial advice
• 16:43
  Speaker 2: when it comes to investment and insurance and then their
• 16:46
  Speaker 2: savings and goals. And now I look at it and go, Victoria,
• 16:50
  Speaker 2: you are so silly. Phil's model is genius because you
• 16:54
  Speaker 2: know the inside outs of the insurance world. You're not
• 16:58
  Speaker 2: just looking at you know, investment, which, to be honest,
• 17:01
  Speaker 2: if you're a financial advisor, that often takes up a
• 17:03
  Speaker 2: lot of time, and you know, I'm not throwing other
• 17:07
  Speaker 2: financial advisors under a bus because that was me as well.
• 17:10
  Speaker 2: But often if you're a financial advisor that does investment
• 17:14
  Speaker 2: insurance and you know budget, cash flow, goal, savings and superannuation,
• 17:19
  Speaker 2: insurance kind of becomes what I would call a hygiene factor.
• 17:23
  Speaker 2: You kind of tick a box and go, well, my
• 17:24
  Speaker 2: client needs that, will get it away. But I'm excited
• 17:27
  Speaker 2: about the investment side of things. So as much as
• 17:30
  Speaker 2: you focus on it and you kind of hear about
• 17:32
  Speaker 2: it every day, you're not in the trenches every single
• 17:35
  Speaker 2: minute of every single day. And now looking at your
• 17:39
  Speaker 2: business model and my client's experiences, because when I exited
• 17:42
  Speaker 2: the industry, I did handball a lot of people over
• 17:45
  Speaker 2: to you to be like, please look after these clients
• 17:47
  Speaker 2: really well because I'm legally not allowed to anymore, and
• 17:51
  Speaker 2: even our community coming back and being like, oh my gosh,
• 17:54
  Speaker 2: I'm so glad I spoke to Phil's team. Talk to
• 17:57
  Speaker 2: me about why you made that choice, but also why
• 17:59
  Speaker 2: it's important that you've made that choice, especially because not
• 18:03
  Speaker 2: everybody knows this, but the industry has changed so much
• 18:07
  Speaker 2: since then.
• 18:07
  Speaker 4: Yeah, it's a good question, just from a business point
• 18:10
  Speaker 4: of view, the way you do this. Financial advisors on
• 18:12
  Speaker 4: Mass are moving away from insurance advice, and so a
• 18:16
  Speaker 4: part of me thought, well, it's a great space to
• 18:18
  Speaker 4: be and if everyone's getting out but the need is still.
• 18:21
  Speaker 2: There or being wrongs in your head, or you're really smart.
• 18:24
  Speaker 2: Turns out he was really smart.
• 18:25
  Speaker 4: Guys not too sure. We're still undecided about that. So
• 18:28
  Speaker 4: I moved into it because you know, the need for
• 18:30
  Speaker 4: insurance is still there and is growing. We're getting wealthier,
• 18:33
  Speaker 4: so they need to protect that wealth is getting more.
• 18:35
  Speaker 4: So I've still got a lot of respect for holistic
• 18:38
  Speaker 4: advice firms and advisors, and we refer a lot of
• 18:40
  Speaker 4: business to do it exactly. And so the reason I
• 18:45
  Speaker 4: made that choice is because I feel like, unfortunately, financial
• 18:48
  Speaker 4: advice is very expensive for holistic advice, so focusing on
• 18:52
  Speaker 4: one area of the advice need, we can help our
• 18:55
  Speaker 4: clients make a really informed decision about a really important
• 18:59
  Speaker 4: financial product, which is insurance at a much lower cost
• 19:02
  Speaker 4: and a holistic plan can cost. You know, there was
• 19:05
  Speaker 4: a point where, you know, we had to change five
• 19:07
  Speaker 4: fair thousand dollars for an upfront plan for holy time,
• 19:10
  Speaker 4: That's what.
• 19:10
  Speaker 2: I used to do. So I remember I would talk
• 19:12
  Speaker 2: to people and be like, oh yeah, and like my
• 19:13
  Speaker 2: standard fee for completely holistic advice was about six and
• 19:16
  Speaker 2: a half thousand dollars, right, And you put that number
• 19:19
  Speaker 2: on the table and it terrifies people, especially my community
• 19:23
  Speaker 2: who were often starting with Lukvi. I've saved my first
• 19:27
  Speaker 2: five grand and really excited to get into investing and
• 19:30
  Speaker 2: creating wealth for myself, and I'd often have to say, please,
• 19:33
  Speaker 2: don't come and see me then like, and I think
• 19:35
  Speaker 2: that's one of the reasons I exited the industry because
• 19:38
  Speaker 2: I was like, I'm not able to have the impact
• 19:40
  Speaker 2: that I want to have. But when you break it
• 19:42
  Speaker 2: down with how much time is spent on crafting a
• 19:45
  Speaker 2: plan and doing research and the compliance these days, to
• 19:49
  Speaker 2: me is insane, Like I feel like I fell in
• 19:52
  Speaker 2: the same form, five different places to go to, five
• 19:54
  Speaker 2: different people to make sure that you are putting the
• 19:56
  Speaker 2: client in the right position. And please don't get me wrong,
• 19:59
  Speaker 2: it's a centin sure, like after the Royal Commission, all
• 20:02
  Speaker 2: of these things make sense. But then you're spending an
• 20:05
  Speaker 2: hour in a meeting with a client for which fil
• 20:07
  Speaker 2: you would understand this too. Then you spend an hour
• 20:09
  Speaker 2: writing notes of what happened in the meeting because you
• 20:12
  Speaker 2: have to file note it and when it comes out
• 20:15
  Speaker 2: in the wash, there's not a lot of profit there
• 20:17
  Speaker 2: because you're paying your admin staff, you're paying your power planners,
• 20:20
  Speaker 2: you're paying for you know, your overheads. Even a financial
• 20:24
  Speaker 2: services license just to cool yourself a financial advisor is insane, Like,
• 20:29
  Speaker 2: you know, I'm happy to talk about it, but my
• 20:31
  Speaker 2: financial services license historically has cost a minimum of fifty
• 20:35
  Speaker 2: thousand dollars a year.
• 20:36
  Speaker 4: And then on top of.
• 20:37
  Speaker 2: That, my licensee was taking five percent of whatever I made.
• 20:42
  Speaker 2: And that's normal, Like, that's actually a pretty good deal.
• 20:45
  Speaker 2: Like if you look at it, you go, yeah, all right,
• 20:46
  Speaker 2: well that makes sense. Usually it caps out at the
• 20:49
  Speaker 2: first million dollars you make. That is not the reality
• 20:52
  Speaker 2: for most advisors. But you go, oh, okay, no worries.
• 20:54
  Speaker 2: That makes sense because they do do a really good
• 20:56
  Speaker 2: job when it comes to making sure that your client
• 20:59
  Speaker 2: is protected all of that overhead.
• 21:02
  Speaker 4: It's not a lot of profit exactly. And when you
• 21:04
  Speaker 4: talk about a five thousand dollars plan for the average
• 21:06
  Speaker 4: Australian where the business itself isn't making much money, it
• 21:10
  Speaker 4: doesn't work that well. You know, I grew up in
• 21:12
  Speaker 4: a very middle class Australia and I'm passionate about, you know,
• 21:16
  Speaker 4: the everyday Austraian getting advice. The difficulty with it getting
• 21:20
  Speaker 4: holistic advice is it's too expensive. So what I decided
• 21:23
  Speaker 4: to do is I will help people make an informed
• 21:26
  Speaker 4: decision about one financial product, which is insurance. Now we
• 21:30
  Speaker 4: charge three hundred and thirty dollars for individuals and four
• 21:32
  Speaker 4: ninety fives for couple, so it is much lower than
• 21:35
  Speaker 4: Holy shit, it's not six and a half grand. No,
• 21:38
  Speaker 4: I'll charge you six and a half grand if you
• 21:39
  Speaker 4: are probably have. The reason we can make it much
• 21:43
  Speaker 4: more affordable is because there is commissions on the insurance products.
• 21:46
  Speaker 4: So when we set up the insurance, we get paid
• 21:48
  Speaker 4: a commission from the insurance provider. Now it's all standardized
• 21:51
  Speaker 4: in terms of the commission rate, and you know it
• 21:53
  Speaker 4: was actually before the Royal Commission there was changes with
• 21:56
  Speaker 4: the commission rate, so it's all standardized. So whether we
• 21:58
  Speaker 4: go with you know, one insure or the other.
• 22:00
  Speaker 2: Yeah, there's no actual financial incentive anymore. Because don't get
• 22:03
  Speaker 2: me wrong. If people are like there is, I'd be like, yeah,
• 22:06
  Speaker 2: there used to be. There is now no financial incentive
• 22:09
  Speaker 2: to pick you know, one path over AIA, like it
• 22:12
  Speaker 2: doesn't actually matter, which I know most of the good
• 22:15
  Speaker 2: advisors never cared about to begin with, because that wouldn't
• 22:18
  Speaker 2: have been the ethical thing to do. However, it does
• 22:20
  Speaker 2: put the consumer in the best possible position to go.
• 22:23
  Speaker 2: I know, Phil can't take me for a ride because
• 22:25
  Speaker 2: it's literally illegal.
• 22:26
  Speaker 4: Yeah. Correct, So that's kind of why we went to
• 22:29
  Speaker 4: insurance only because I'm very passionate about helping everyone. We
• 22:32
  Speaker 4: want to make advice really simple, we want to make
• 22:34
  Speaker 4: it affordable. That's kind of our mission at Sky. So
• 22:37
  Speaker 4: that's why I went to insurance. It made up a
• 22:39
  Speaker 4: really small portion of our business. I kind of dabbled
• 22:42
  Speaker 4: since going there. It's so much more complicated than I
• 22:44
  Speaker 4: ever thought. I thought it was simple, a level of
• 22:48
  Speaker 4: Carba picking. It is your own happy days, and you know,
• 22:51
  Speaker 4: getting into it specializing, you learn how much more complicated
• 22:54
  Speaker 4: it actually is. So you know, what we do is
• 22:56
  Speaker 4: we pair the insurance provider with the clients based on
• 22:59
  Speaker 4: their personal medical history. So insurers, you'll get three different
• 23:03
  Speaker 4: insurance companies will provide us what's called a pre assessment,
• 23:06
  Speaker 4: so we get some medical information up front, we send
• 23:08
  Speaker 4: it to insurers and say how would you assess a
• 23:10
  Speaker 4: potential application? And they come back. One says we'll put
• 23:13
  Speaker 4: an exclusion for this, one says what's called standard rates,
• 23:16
  Speaker 4: so no exclusions are loading. And another will say that
• 23:18
  Speaker 4: they're going to put a loading on the premium, so
• 23:20
  Speaker 4: charge more for that premium. And so we'll then go, okay,
• 23:23
  Speaker 4: let's look at the premiums and maybe the one with
• 23:25
  Speaker 4: standard rates their base rate is more expensive, but it
• 23:28
  Speaker 4: doesn't have an exclusion, and it's you know, we're not
• 23:30
  Speaker 4: factoring that loading, and so that's the insurance provider we're
• 23:34
  Speaker 4: going to recommend for our clients. So we provide that
• 23:36
  Speaker 4: we do all the research in terms of our process,
• 23:39
  Speaker 4: but we make that assessment on which insurance provider we
• 23:42
  Speaker 4: make an assessment and a recommendation on the level of cover,
• 23:45
  Speaker 4: and then we discuss the premiums, how to fund the premiums.
• 23:47
  Speaker 4: Can you pay for the premiums from your super fund?
• 23:49
  Speaker 4: How much is coming from your bank account? And then
• 23:52
  Speaker 4: we talk about a mix of it comes up with
• 23:54
  Speaker 4: these premiums, do we need to make any adjustments? And
• 23:56
  Speaker 4: then we go from an application and we apply for
• 23:58
  Speaker 4: the cover from there.
• 23:59
  Speaker 2: Yeah, it's a lot more complex. I remember at the
• 24:02
  Speaker 2: end of my financial advice career, I was talking to
• 24:06
  Speaker 2: you so often. I was like, I'm done, I can't
• 24:09
  Speaker 2: do this, Like there's just so many changes and so
• 24:12
  Speaker 2: many hoops and so many things to get through. And
• 24:15
  Speaker 2: I think that insurance over the last ten years has
• 24:18
  Speaker 2: really i would say, knuckled down even on just exclusions
• 24:22
  Speaker 2: and what they will and won't accept. And I'm seeing
• 24:24
  Speaker 2: a lot was seeing, and I'm sure you're seeing now
• 24:27
  Speaker 2: a lot of people in circumstances where they actually just
• 24:29
  Speaker 2: can't get cover because they have experienced significant health issues
• 24:34
  Speaker 2: along the way, and the insurer is actually doing what's
• 24:37
  Speaker 2: best for the insurer. They're not trying to crucify you,
• 24:39
  Speaker 2: they're not trying to be rude, they're not discriminating. They're
• 24:42
  Speaker 2: just going, hey, Phil, well, actually you've had all these
• 24:44
  Speaker 2: health conditions and the reality of the circumstance is that
• 24:49
  Speaker 2: you're probably going to get more and it's not a
• 24:51
  Speaker 2: very good business decision for our insurance company to then
• 24:54
  Speaker 2: offer you cover because we're going to pay through the
• 24:56
  Speaker 2: nose for this. Like they're managing their risk and assessing
• 24:59
  Speaker 2: that that's what their job is, to assess risk, make
• 25:02
  Speaker 2: sure that they're ensuring people that hopefully aren't going to
• 25:06
  Speaker 2: get sick. But if that comes up, then they're like, yeah, okay,
• 25:10
  Speaker 2: fair game, no worries, we'll absolutely pay out on that.
• 25:13
  Speaker 2: But I think there's this misconception that if we go
• 25:17
  Speaker 2: and say, well I want personal insurance, you will be
• 25:20
  Speaker 2: able to get it. How often are you having a
• 25:22
  Speaker 2: conversation with people where you go, look, you could probably
• 25:25
  Speaker 2: get this insurance and we could probably set up some
• 25:27
  Speaker 2: life but like your income protection might be more impacted
• 25:31
  Speaker 2: than not. What does that look like? Because I feel
• 25:33
  Speaker 2: like a few people in our community have had that
• 25:36
  Speaker 2: question recently where they're like, well, I went to see
• 25:38
  Speaker 2: an advisor. Obviously it wasn't you feel but I went
• 25:40
  Speaker 2: to see an advisor and they said that I couldn't
• 25:42
  Speaker 2: get covered, and I just think that's a joke, and
• 25:44
  Speaker 2: you go, oh, like, actually they were probably right.
• 25:47
  Speaker 4: Yeah, yeah, So I mean there's a few things there.
• 25:49
  Speaker 4: So how often do we see people get certain covers
• 25:52
  Speaker 4: and not other covers? Yet we see it sometimes, but
• 25:55
  Speaker 4: we work with all insurers, so you know, sometimes one
• 25:58
  Speaker 4: insurance company will say no, but five others will say yes.
• 26:01
  Speaker 4: So that's kind of sometimes. We see it a lot
• 26:03
  Speaker 4: with our clients when they go to their super fun
• 26:05
  Speaker 4: and they say, hey, can I get covered? And they
• 26:07
  Speaker 4: get decliented and they think that's the rule across the insurance.
• 26:10
  Speaker 2: I just can't get insured.
• 26:11
  Speaker 4: Now I can't get it anymore because my super fund
• 26:13
  Speaker 4: said no. Well, the issue is the super Fun only
• 26:16
  Speaker 4: works with one insurance company, so that one insurance company
• 26:19
  Speaker 4: has made an assessment that they're not offering cover, but
• 26:22
  Speaker 4: there's plenty others, well, not plenty, there are some others.
• 26:25
  Speaker 4: Others aren't that many film yeah, and some others may
• 26:30
  Speaker 4: be willing to accept their isk. So our job is
• 26:32
  Speaker 4: we work with all the insurers. So we say, well,
• 26:35
  Speaker 4: these four insurance companies are going to say no, but
• 26:38
  Speaker 4: these two will say yes. And then from these two,
• 26:40
  Speaker 4: let's look at, okay, which one do we think is
• 26:42
  Speaker 4: a better contract, which is price better, and then we'll
• 26:44
  Speaker 4: make a recommendation. But life insurance and trauma insurance generally
• 26:49
  Speaker 4: get a very similar assessment. Income protection and disability will
• 26:52
  Speaker 4: also get the same assessment, so you may get an
• 26:55
  Speaker 4: exclusion on income protection and disability or TPD that life
• 27:00
  Speaker 4: insurance doesn't have. So a very common one is mental
• 27:02
  Speaker 4: health exclusion. So income protection and disability will have a
• 27:05
  Speaker 4: mental health exclusion, but your life insurance and trauma policy
• 27:08
  Speaker 4: won't have that exclusion. And we walk that through in
• 27:11
  Speaker 4: our advice where we say, hey, this is what the
• 27:14
  Speaker 4: likely terms will be. Now we haven't applied for the cover,
• 27:16
  Speaker 4: so it could come back as a different outcome. It
• 27:18
  Speaker 4: could be better, it could be worse, but this is
• 27:20
  Speaker 4: what we expect exclusions on income protection, disability and maybe
• 27:24
  Speaker 4: standard rates on life insurance and trauma.
• 27:27
  Speaker 2: Yeah, and I think the extra value there is you
• 27:30
  Speaker 2: have that relationship with those insurers. So if you're with
• 27:33
  Speaker 2: a client, say they are potentially going to get a
• 27:37
  Speaker 2: mental health exclusion, before even submitting it, you have the
• 27:41
  Speaker 2: ability to call up and have a chat and go, look,
• 27:43
  Speaker 2: what's the likelihood of this, Because no financial advisor ever
• 27:47
  Speaker 2: wants to submit an application that gets declined because that
• 27:50
  Speaker 2: will show up on the client's history and even in
• 27:52
  Speaker 2: future when you're writing out your next fact find with
• 27:56
  Speaker 2: a financial advisor to get insurance again with a different provider,
• 28:00
  Speaker 2: you have to disclose if you've ever been denied insurance before.
• 28:03
  Speaker 2: So often financial advisors, if there is the chance of
• 28:06
  Speaker 2: having an exclusion, will be really hands on to make
• 28:09
  Speaker 2: sure that if for any chance it's going to be declined,
• 28:14
  Speaker 2: they know beforehand. So we hear you know what, Let's
• 28:16
  Speaker 2: just withdraw that, not have a decline on your history,
• 28:19
  Speaker 2: and find another way to make this work and make
• 28:21
  Speaker 2: this happen. You just mentioned life cover, TBD and trauma insurance,
• 28:26
  Speaker 2: So let's go to a really quick break because I
• 28:28
  Speaker 2: feel like we've gone really deep really quickly on income
• 28:31
  Speaker 2: protection and why insurance and why you do what you do.
• 28:34
  Speaker 2: And on the flip side, let's go over why you'd
• 28:36
  Speaker 2: have life cover, what TBD actually is, and what the
• 28:39
  Speaker 2: difference between TBD and trauma insurance is. So guys, don't
• 28:43
  Speaker 2: go anywhere, all right, Phil, We are back, and I
• 28:51
  Speaker 2: feel like all of these personal insurances get lumped into one.
• 28:55
  Speaker 2: Sometimes you go, do you have insurance? Yeah, I've got
• 28:57
  Speaker 2: it through super What have you got through? And then
• 29:00
  Speaker 2: you find out more often than not, they just have
• 29:03
  Speaker 2: a really low level of life insurance, not usually trauma
• 29:07
  Speaker 2: insurance because that's held outside of superannuation. They might have
• 29:10
  Speaker 2: some TPD with really hard to claim benefits and maybe
• 29:14
  Speaker 2: a two year income protection policy. So let's start here
• 29:17
  Speaker 2: because I know this is kind of like the easiest
• 29:20
  Speaker 2: to talk about insurance policy. What's life insurance?
• 29:24
  Speaker 4: Well, life insurance is just a lump sum payment if
• 29:27
  Speaker 4: you pass away, and that gets paid out to your
• 29:29
  Speaker 4: estate or to know whoever you nominate to be a beneficiary.
• 29:34
  Speaker 4: What if I'm not married, Well, it'll get paid out
• 29:36
  Speaker 4: to your state, so your state will then determine who
• 29:40
  Speaker 4: gets it. So if you're not married, you don't have
• 29:41
  Speaker 4: a partner, then your parents will generally get it unless
• 29:44
  Speaker 4: you will dictates somewhere else.
• 29:46
  Speaker 2: And if I'm looking at life insurance and I am
• 29:49
  Speaker 2: twenty one still live at home, where's the value in
• 29:53
  Speaker 2: that versus I'm thirty five, I have two kids and
• 29:56
  Speaker 2: a mortgage, So like, how do we assess how much
• 29:59
  Speaker 2: life insurance need? Because I think my life's worth heaps,
• 30:02
  Speaker 2: so I just want the most amount of life insurance.
• 30:05
  Speaker 4: Well you can really at the end of the day,
• 30:06
  Speaker 4: there's no one stopping you from getting life insurance.
• 30:10
  Speaker 2: More for me, that's weird.
• 30:13
  Speaker 4: Well, I mean it's really a personal preference. But life
• 30:16
  Speaker 4: insurance for that twenty one year old living at home,
• 30:18
  Speaker 4: maybe there isn't a need. But sometimes, and actually quite often,
• 30:21
  Speaker 4: what we see is adding life insurance brings the overall
• 30:24
  Speaker 4: costs down because you group them all together. There's like
• 30:26
  Speaker 4: grouping discounts. Often it costs less to have life insurance
• 30:30
  Speaker 4: than it doesn't have it. So often we are telling
• 30:32
  Speaker 4: that twenty nine year old have a million dollars of
• 30:34
  Speaker 4: life cover because we think you need the disability cover
• 30:37
  Speaker 4: of a million and it's going to save your overall
• 30:39
  Speaker 4: having it, So we don't think you need it, but
• 30:41
  Speaker 4: have it anyway. Here's all the numbers and will prove
• 30:44
  Speaker 4: that it's cheaper.
• 30:45
  Speaker 2: Yeah, and I like that part of the process as well.
• 30:48
  Speaker 2: I used to get a lot of enjoyment out of
• 30:50
  Speaker 2: really getting my client to understand why I'm making the
• 30:52
  Speaker 2: decisions I'm making, because there's literally nothing worse than thinking
• 30:56
  Speaker 2: that your client might go to a barbecue be like, oh, yeah,
• 30:59
  Speaker 2: I got my insurance is sorted. I'm a big dog,
• 31:01
  Speaker 2: like it's all sorted now, like best ever, and their
• 31:04
  Speaker 2: mate goes, oh, what ones did you get? They go, oh, yeah,
• 31:07
  Speaker 2: I got a million in life cover, And then all
• 31:09
  Speaker 2: of a sudden, their mate's like, you don't need a
• 31:10
  Speaker 2: million in life cover, Like that's ridiculous, Rah. The important
• 31:14
  Speaker 2: thing about advice is also educating your client to understand
• 31:17
  Speaker 2: will actually I have it for a good reason. It's
• 31:19
  Speaker 2: not because you know, I need a million dollars if
• 31:22
  Speaker 2: I pass away. It's because ABCD and E. The other
• 31:26
  Speaker 2: thing I like about life cover obviously I'm entering a
• 31:29
  Speaker 2: new stage of life now I'm about to have a baby,
• 31:31
  Speaker 2: which is crazy. I now have mortgages that I didn't
• 31:34
  Speaker 2: have when Phil you set up all of my insurances
• 31:36
  Speaker 2: to begin with, and we are going through the process.
• 31:39
  Speaker 4: At the moment.
• 31:40
  Speaker 2: By going through the process, I mean I have been
• 31:42
  Speaker 2: avoiding Phil's emails for the last six months, but we're
• 31:46
  Speaker 2: going through the process at the moment of increasing my
• 31:48
  Speaker 2: husband's and my life insurance and income protection and trauma
• 31:52
  Speaker 2: and all of that fun stuff. But my I guess
• 31:55
  Speaker 2: responsibilities are much higher now. But also a commonversation that
• 32:00
  Speaker 2: I like having around life insurance is really that legacy
• 32:03
  Speaker 2: piece and going well, Actually, I can leave my family
• 32:08
  Speaker 2: and my friends and you know, the world in an
• 32:10
  Speaker 2: even better place than it was beforehand. What does that
• 32:14
  Speaker 2: look like? Are these conversations that you're having with clients
• 32:17
  Speaker 2: often or is it just me because I'm a little
• 32:19
  Speaker 2: bit hippidipy in.
• 32:20
  Speaker 4: Terms of legacy? Yeah, yeah, I mean it's something I
• 32:23
  Speaker 4: haven't factored in too much. For me. Life insurance is just,
• 32:27
  Speaker 4: as you said, a hygiene factor. If you've got kids,
• 32:29
  Speaker 4: you got a mortgage, it's kind it's cheap comparative, it's
• 32:34
  Speaker 4: probably the cheapest insurance you'll ever have in your life.
• 32:36
  Speaker 4: So it's comparatively cheap, and it just makes sense if
• 32:39
  Speaker 4: you got a mortgage you've got kids, it's kind of
• 32:41
  Speaker 4: a no brainer. But in terms of that legacy, it's
• 32:43
  Speaker 4: probably something I'll have more conversations these days, because, as
• 32:46
  Speaker 4: I said, at the start of this year, I met
• 32:48
  Speaker 4: with a friend who's about to pass away, and it
• 32:51
  Speaker 4: was so important for him to have a legacy for
• 32:53
  Speaker 4: his boys. He was allocating his super balance into a
• 32:56
  Speaker 4: trust fund for his boys, and the insurance payment was
• 33:00
  Speaker 4: for his wife to pay off the mortgage and to
• 33:03
  Speaker 4: afford the lifestyle of being without him. So historically, I'm
• 33:07
  Speaker 4: very pragmatic. It just makes sense. This is the game.
• 33:10
  Speaker 2: I'm very black and white as well.
• 33:12
  Speaker 4: It's very it makes sense. Just do it well.
• 33:14
  Speaker 2: It makes sense. But then also if you want to
• 33:16
  Speaker 2: take it a step further, like hypothetically something happens to me,
• 33:20
  Speaker 2: I don't want to leave Steve with a mortgage that
• 33:24
  Speaker 2: is going to be really hard to pay off because
• 33:26
  Speaker 2: right now we're a jewel income household. You know, we
• 33:29
  Speaker 2: both contribute to this. I don't want to leave him
• 33:31
  Speaker 2: with a child that he goes far out, like daycare
• 33:34
  Speaker 2: is so expensive, but I need to go to work
• 33:37
  Speaker 2: to provide for this family. But if I stay home,
• 33:39
  Speaker 2: like I don't want to leave this situation won't ever
• 33:43
  Speaker 2: be by choice, but if I hypothetically did leave the
• 33:46
  Speaker 2: situation yesterday, I want him to be able to be
• 33:49
  Speaker 2: as successful and thrive as much as possible after I'm
• 33:53
  Speaker 2: not there, Whereas if I didn't have this insurance, my
• 33:56
  Speaker 2: husband would probably have to sell the house, probably change
• 34:00
  Speaker 2: all of our plans around what education looks like, about
• 34:02
  Speaker 2: where we want to live, about what we want to do,
• 34:05
  Speaker 2: and make his life significantly harder. It's obviously going to
• 34:08
  Speaker 2: be the hardest ever not having me on top of that,
• 34:13
  Speaker 2: it's just kind of like the peace of mind knowing
• 34:15
  Speaker 2: he would not have to stress about the financial aspect
• 34:18
  Speaker 2: of it. And if I can't be there, at least
• 34:20
  Speaker 2: I've provided that. So I think for me that's really important.
• 34:23
  Speaker 2: And legacy, you know, it doesn't come in the form
• 34:26
  Speaker 2: of like, oh, I feel I need a million dollars
• 34:28
  Speaker 2: worth of cover because I want a whole heap of
• 34:30
  Speaker 2: this money to go to the Lost Dogs Home. It's
• 34:32
  Speaker 2: actually I want to leave a legacy where my children
• 34:35
  Speaker 2: and my family know that I looked after them even
• 34:38
  Speaker 2: when I couldn't be present, And I think that that's
• 34:40
  Speaker 2: a really cool part of the to me life insurance conversation.
• 34:44
  Speaker 4: Yeah, and the other thing to note, you know, as
• 34:46
  Speaker 4: you talked about you and Steve are contributing, you know,
• 34:49
  Speaker 4: collectively financially to the household. But something I just want
• 34:52
  Speaker 4: to call out is if you're not equally contributing financially
• 34:55
  Speaker 4: to the household, doesn't mean there's no need for life insurance. Exactly.
• 34:59
  Speaker 2: You brought this, We're screwed without it.
• 35:01
  Speaker 4: We're increasing her life insurance at the moment because if
• 35:05
  Speaker 4: I didn't have cage, like she went overseas for two
• 35:08
  Speaker 4: and a half weeks last year and it was chaos.
• 35:11
  Speaker 4: Me and the girls had a joke about all the
• 35:13
  Speaker 4: dad fails I did the first day I left, you know,
• 35:15
  Speaker 4: the lunch box at home for our youngest and so
• 35:17
  Speaker 4: I've got a call from the school saying, hey, kids
• 35:19
  Speaker 4: does no Yeah, Harbor's got no food, And I'm like, okay, cool,
• 35:22
  Speaker 4: I better go and do that. Just the chaos that
• 35:26
  Speaker 4: that was for two and a half weeks, and there
• 35:28
  Speaker 4: was no emotional baggage, you know, I was, You're just
• 35:32
  Speaker 4: happy she was having a good time. But if she
• 35:35
  Speaker 4: passed away, like we would have those dad fails times
• 35:39
  Speaker 4: a million. And so it's not just about oh, we're
• 35:42
  Speaker 4: both financially contributing, Like it doesn't matter about the financial contributions.
• 35:45
  Speaker 4: Life insurance is incredibly important and if not more important
• 35:49
  Speaker 4: for someone who is, know, for my case, looking after
• 35:52
  Speaker 4: the girls full time. We're literally going through increasing Kate's cabar, and.
• 35:56
  Speaker 2: For good reason, because she does six million things that
• 35:59
  Speaker 2: you do not make. Friend and I used to have
• 36:01
  Speaker 2: these conversations where couples would come to me and they
• 36:05
  Speaker 2: came to me with the I guess aim of getting
• 36:08
  Speaker 2: their husbands or the primary income earners income protection insuranceinforced.
• 36:13
  Speaker 2: And you'd go, all right, well that makes sense, let's
• 36:15
  Speaker 2: have that conversation. And you'd kind of then turn your
• 36:17
  Speaker 2: chair around and be like, and what about you? And
• 36:18
  Speaker 2: they'd be like, oh, no, I don't work. It's all good,
• 36:20
  Speaker 2: and I'd be like, sorry, I'm pretty sure, don't mean
• 36:24
  Speaker 2: to be rude. Person who's primary income earner, you're more
• 36:27
  Speaker 2: expensive to replace than them, because like if the primary
• 36:31
  Speaker 2: income earner, and please don't get me wrong, like this
• 36:33
  Speaker 2: isn't a conversation about household chores and the division of
• 36:37
  Speaker 2: labor and all of that. It's not actually about that.
• 36:40
  Speaker 2: But if you're in a circumstance where you do have
• 36:42
  Speaker 2: someone at home. They're the taxi driver, they're the chef,
• 36:46
  Speaker 2: they are the housekeeper, they are the educator, they are
• 36:49
  Speaker 2: the childcare they are they're literally everything under the sun.
• 36:52
  Speaker 2: And for you to replace that person is I promise
• 36:55
  Speaker 2: way more than usually what the primary bread winner's income is.
• 36:59
  Speaker 2: And that's why I look at it and go TPD
• 37:02
  Speaker 2: trauma insurance. Life insurance for that person is really important. Obviously,
• 37:06
  Speaker 2: if they don't have an income to protect, you're not
• 37:08
  Speaker 2: going to be able to protect that. But ensuring them
• 37:11
  Speaker 2: in every other way is so essential because it's going
• 37:15
  Speaker 2: to keep your life on a pathway that you choose.
• 37:18
  Speaker 2: If something that you choose not to happen.
• 37:20
  Speaker 4: Happens, that's right. And for the main income or they've
• 37:23
  Speaker 4: got income protection to carry a lot of the load
• 37:26
  Speaker 4: for that loss of income. But if you're not working
• 37:29
  Speaker 4: and you're not earning an income, you can't get income protection.
• 37:31
  Speaker 4: So that's why these lumps some covers so live TVD trauma,
• 37:34
  Speaker 4: they're so much more important for that non working partner
• 37:38
  Speaker 4: because there's no income protection.
• 37:40
  Speaker 2: Yeah, exactly. All right, let's talk about TPD insurance that
• 37:43
  Speaker 2: is total and permanent disability. What is it, Phil? Why
• 37:46
  Speaker 2: would I get it?
• 37:47
  Speaker 4: So? If you're totally and permanently disabled, So if you
• 37:50
  Speaker 4: cannot work ever again because of anything health, mental health,
• 37:55
  Speaker 4: you know, physical health, like any reason you cannot return
• 37:57
  Speaker 4: to work, you will get paid a lumps So it's
• 38:00
  Speaker 4: just a once off payment that you'll get paid. There
• 38:02
  Speaker 4: are some TVD policies that are paid over six years,
• 38:05
  Speaker 4: and they're becoming a bit more popular these days. Some
• 38:08
  Speaker 4: super funds have that. I personally don't love it, but
• 38:10
  Speaker 4: it's just a once off payment which is just a
• 38:12
  Speaker 4: lump sum payment, and we normally pair that with a
• 38:14
  Speaker 4: life insurance.
• 38:15
  Speaker 2: That actually reminds me of the conversation I had last
• 38:19
  Speaker 2: year on the podcast with my friend Rianne and Tracy
• 38:22
  Speaker 2: And if you haven't listened to that. She has an Instagram,
• 38:25
  Speaker 2: She is an influencer, she like is a coach, she
• 38:28
  Speaker 2: like does a whole heap of inclusion modeling and also
• 38:31
  Speaker 2: has her own rehab facility because Phil TLDR. She went
• 38:36
  Speaker 2: overseas with her mum to Bali when she was much younger,
• 38:40
  Speaker 2: I think she was twenty. She dove into a pool
• 38:42
  Speaker 2: in Ballei brokenneck and she is now a wheelchair bound
• 38:46
  Speaker 2: and unable to walk, unable to do all of those
• 38:48
  Speaker 2: things that a twenty year old should have been able
• 38:51
  Speaker 2: to do. And she had insurance, but she didn't have much.
• 38:55
  Speaker 2: And she spoke about the ongoing cost of what her
• 38:59
  Speaker 2: disapate costs her, and she's like, even if I had
• 39:02
  Speaker 2: top level cover, like, my disability over my lifetime calculated
• 39:08
  Speaker 2: out will cost me eleven million dollars because all the
• 39:12
  Speaker 2: things that need to happen in and around like even
• 39:14
  Speaker 2: her wheelchairs, and you know, accommodations that needed to be
• 39:17
  Speaker 2: made to her home, and you know, doorways that need
• 39:20
  Speaker 2: to be wide enough and ramps and all of those
• 39:22
  Speaker 2: things that need to be taken into consideration. That's what
• 39:26
  Speaker 2: you're kind of talking about when it comes to total
• 39:28
  Speaker 2: and permanent disability, making sure that you've got the cash
• 39:31
  Speaker 2: to make you comfortable as well as you know, pay
• 39:35
  Speaker 2: for care and make sure that all of that is
• 39:37
  Speaker 2: well and good. But to me, I just remember being
• 39:40
  Speaker 2: like it what like she calculated out on the podcast,
• 39:43
  Speaker 2: feel what it costs for her to go to the
• 39:46
  Speaker 2: bathroom each year? Yes, you listen to it, and I
• 39:49
  Speaker 2: just remember being like, what do you mean? It costs
• 39:51
  Speaker 2: more than eighty thousand dollars a year, and she's like, well,
• 39:53
  Speaker 2: that's just what it costs in catheters and you know,
• 39:57
  Speaker 2: support for me to actually just go to the bathroom
• 40:00
  Speaker 2: and I just go, holy snapping ducks, Like that's so expensive.
• 40:04
  Speaker 2: But these are things that if you've never been through it,
• 40:06
  Speaker 2: you don't think about. Why would you think about that?
• 40:08
  Speaker 4: Phil?
• 40:09
  Speaker 2: So I think that this is where it's important to
• 40:11
  Speaker 2: have something like TPD and to have that in force,
• 40:14
  Speaker 2: because it's just going to help so much with those
• 40:17
  Speaker 2: rehabilitation and living costs that are essential. Like you don't
• 40:21
  Speaker 2: have a choice. If you're in a wheelchair, you're not
• 40:23
  Speaker 2: going upstairs. Who's paying for that ramp? It's not someone's
• 40:27
  Speaker 2: going to come around and build it because they're nice. Unfortunately,
• 40:30
  Speaker 2: the last type of insurance we're going to talk about
• 40:33
  Speaker 2: today is trauma insurance. And I do feel like this
• 40:35
  Speaker 2: one sometimes just gets overlooked. Often people like, oh, it's
• 40:39
  Speaker 2: just another insurance, feel like it's not that important. Why
• 40:42
  Speaker 2: is it important? Why do I have so much of it?
• 40:45
  Speaker 4: Trauma is for specific medical events, so it's got nothing
• 40:48
  Speaker 4: to do with whe you can work or not. It's
• 40:50
  Speaker 4: got nothing to do with whether you pass away or not.
• 40:52
  Speaker 4: It's specific medical events and they're all listed out in
• 40:55
  Speaker 4: the contract. But the major ones are cancer that makes
• 40:58
  Speaker 4: up majority of all claims. Is can My sister in
• 41:01
  Speaker 4: law had bow cancer a few years ago, you know,
• 41:03
  Speaker 4: one in eight people. And then when I went to
• 41:05
  Speaker 4: the doctors, I saw the sign because you know, I
• 41:07
  Speaker 4: had bow cancer in my family, and I saw one
• 41:10
  Speaker 4: in eight people will have bow cancer in Australia. I'm like,
• 41:12
  Speaker 4: that is insane.
• 41:13
  Speaker 2: And so actually.
• 41:14
  Speaker 4: Cancer is the major one paid out of this thing
• 41:17
  Speaker 4: is like heart attack, strokes, MS. You know, there's a
• 41:20
  Speaker 4: whole bunch of conditions that's listed on trauma or critical illness,
• 41:24
  Speaker 4: and that for me is kind of the second most important,
• 41:26
  Speaker 4: depending on life stage and everything. Life insurance is very important.
• 41:29
  Speaker 4: Income protection is my number one. Trauma was kind of
• 41:31
  Speaker 4: my number two because it is the most claimed on
• 41:34
  Speaker 4: after income protection. And it's so important because, as I said,
• 41:38
  Speaker 4: my good mate who had pancreated cancer, super healthy forty
• 41:41
  Speaker 4: two years old, nothing was ever going to happen to him,
• 41:44
  Speaker 4: and he had blood tests for months and months and months.
• 41:46
  Speaker 4: He knew something was wrong, but it just couldn't work
• 41:48
  Speaker 4: it out. What was the doctors like your hypochondriacing, how.
• 41:52
  Speaker 2: On top of it he was, and that then he
• 41:54
  Speaker 2: still got the worst possible ality.
• 41:56
  Speaker 4: And he found out stage four pancreatic cancer after spending
• 42:00
  Speaker 4: nine months of blood tests, going, I know something's going on.
• 42:03
  Speaker 4: So that for him he was able to get paid
• 42:06
  Speaker 4: out a trauma claim because he had a trauma insurance.
• 42:08
  Speaker 4: We've got clients that I talked about with four months
• 42:11
  Speaker 4: after the policy was inforced found out she had breast cancer.
• 42:14
  Speaker 4: There is not anyone in Australia who doesn't have an
• 42:16
  Speaker 4: experience with cancer in their family or friends, and so
• 42:19
  Speaker 4: we all have experiences with these medical events that will
• 42:22
  Speaker 4: pay out on trauma. Trauma just can't be paid from
• 42:25
  Speaker 4: by your super. So most people think I've got insurance
• 42:27
  Speaker 4: sorted out. My super's got it covered for trauma. You
• 42:30
  Speaker 4: super will never have it because it just can't.
• 42:33
  Speaker 2: Everybody assumes that when you are getting your personal insurance
• 42:37
  Speaker 2: has set up, you can hold them all within super,
• 42:39
  Speaker 2: and that's just not the case. It's interesting as well
• 42:43
  Speaker 2: because I feel like trauma sometimes with clients and I
• 42:46
  Speaker 2: don't know if you found this, but I did. When
• 42:48
  Speaker 2: I was an advisor, you'd sit down with clients, maybe
• 42:51
  Speaker 2: you hadn't heard from them many year and you'd finally
• 42:53
  Speaker 2: have your like and your catch up and you'd be like,
• 42:55
  Speaker 2: how are you what's been going on? Like what's changed?
• 42:58
  Speaker 2: And they go, oh, not much. They like, you know,
• 43:00
  Speaker 2: we've moved or we've done this or that. Oh yeah,
• 43:02
  Speaker 2: and you know Bill had a melanoma cut out and
• 43:05
  Speaker 2: you go, wait what, Oh yeah, it's fine, like you know,
• 43:08
  Speaker 2: they caught it. They did a little bit of this
• 43:10
  Speaker 2: that the other major And I was like, you know,
• 43:11
  Speaker 2: that's a trauma claim, right, like you can get paid
• 43:14
  Speaker 2: for that, because often in the trauma space, when you
• 43:17
  Speaker 2: get that policy, there's obviously categories of what type of
• 43:21
  Speaker 2: trauma you experienced, and it was obviously a lower one.
• 43:24
  Speaker 2: Bill's fine, don't worry, But I go, can you let
• 43:27
  Speaker 2: me fill in the claim? Sign these forms here? Can
• 43:29
  Speaker 2: I get permission to get all this information from your doctors?
• 43:32
  Speaker 2: He's forty grand for you. Yeah, And they would be
• 43:34
  Speaker 2: like wait what, I'd be like, well, that's the value
• 43:36
  Speaker 2: of having twenty.
• 43:37
  Speaker 4: Five percent of the trauma amount gets paid as a
• 43:40
  Speaker 4: partial claim.
• 43:41
  Speaker 2: And yeah, exactly where ma'am, Thank you, ma'am. It doesn't
• 43:43
  Speaker 2: wipe out your insurance, you carry on paying your premium
• 43:46
  Speaker 2: and if something else happens down the track, you can
• 43:48
  Speaker 2: claim again. And I just look at it and go,
• 43:50
  Speaker 2: this is where it's so important to understand because I
• 43:53
  Speaker 2: feel like at the moment, especially because I'm in my
• 43:56
  Speaker 2: thirties now, my friends are starting to experience health events
• 44:00
  Speaker 2: that you know, when I was in my early twenties,
• 44:02
  Speaker 2: were like, that'll never happen, and then you drink yourself
• 44:04
  Speaker 2: into oblivion or don't wear sunscreen. And I think, especially
• 44:09
  Speaker 2: being in Australia, making sure that you not only have
• 44:11
  Speaker 2: the cover to make sure that you're okay, but you
• 44:15
  Speaker 2: understand when you can claim, because I can almost guarantee
• 44:19
  Speaker 2: there are so many trauma claims just floating around by
• 44:22
  Speaker 2: people that have the trauma insurance that didn't know they
• 44:25
  Speaker 2: could claim on it.
• 44:25
  Speaker 4: Right, Yeah, owing our good friend and he won't mind
• 44:28
  Speaker 4: me saying this, but Glenn.
• 44:29
  Speaker 2: James Meloni, yeah, posted on Insta about.
• 44:33
  Speaker 4: It and his trauma payment got paid out and happy
• 44:36
  Speaker 4: to account.
• 44:39
  Speaker 2: I remember him joking about that actually, because like obviously
• 44:43
  Speaker 2: we as I guess the background group of money and
• 44:46
  Speaker 2: content creators talk quite often. He's like, yeah, yeah, I
• 44:49
  Speaker 2: don't worry. I'm getting a cut out and I'll get
• 44:51
  Speaker 2: paid soon. I was like, this is not how you
• 44:54
  Speaker 2: should see it, but like in reality, like make hay
• 44:58
  Speaker 2: while the sun's shining right, like you're going through this
• 45:00
  Speaker 2: terrible experience, like at least you're getting something out of it.
• 45:03
  Speaker 4: One of our team members as well, actually had a
• 45:06
  Speaker 4: cancer scare this year. It was interesting situation, but like
• 45:10
  Speaker 4: a cancer scare, had operations and she's okay now, she's
• 45:14
  Speaker 4: fully clear. Had she not worked in insurance, she probably
• 45:17
  Speaker 4: wouldn't have assumed that she could get paid out of
• 45:18
  Speaker 4: claim because it wasn't full bown cancer. She wasn't going
• 45:21
  Speaker 4: through chemo or anything. It was just a bit of
• 45:23
  Speaker 4: a scare, you know, got stuff cut out and she's
• 45:26
  Speaker 4: all good now. Had she not been in the industry,
• 45:29
  Speaker 4: and also had I not caught up the insurance company
• 45:31
  Speaker 4: and said, hey, you better pay out this claim, excuse
• 45:34
  Speaker 4: me strong on them a little bit.
• 45:36
  Speaker 2: I feel like when people are in our wheelhouse, whether
• 45:39
  Speaker 2: they are you know, our staff or our clients, you're like,
• 45:42
  Speaker 2: hold on, no, no, no, I've got some sway ye. I
• 45:44
  Speaker 2: feel like it's like a financial advisor power trip We're like,
• 45:47
  Speaker 2: we don't have a lot of power, but like when
• 45:49
  Speaker 2: we do, yeah.
• 45:50
  Speaker 4: Give me a stifferent power and I'll use it. And
• 45:52
  Speaker 4: you know, saying with our friend with a terminal illness claim,
• 45:55
  Speaker 4: it's he's in the industry, so a lot of people
• 45:57
  Speaker 4: know him. So I'm like picking up the phone with
• 45:58
  Speaker 4: anyone who pick up the phone and say, get this
• 46:00
  Speaker 4: paid out as soon as possible, because you know who
• 46:02
  Speaker 4: it's going to, and you know their family, you know
• 46:04
  Speaker 4: their situation, So get this paid So you know there
• 46:07
  Speaker 4: are sometimes you've got to got to be a little below. Yeah,
• 46:10
  Speaker 4: a little bit. But we got paid out a full traumacclaim.
• 46:13
  Speaker 4: And for her it was incredible, like she's cleared off
• 46:16
  Speaker 4: her mortgage.
• 46:16
  Speaker 2: Now, oh my gosh.
• 46:18
  Speaker 4: And almost better than that, she doesn't need to pay
• 46:20
  Speaker 4: her trauma premiums anymore because they were crossing an armor
• 46:23
  Speaker 4: of the league for her because she had Smoker's raids
• 46:26
  Speaker 4: and everything. So she's cleared off her mortgage and unfortunately
• 46:30
  Speaker 4: for me in the business, she's gone, well, I don't
• 46:32
  Speaker 4: have a mortgage. I'm going to go travel around Australia
• 46:34
  Speaker 4: for six months. So now you lost a team member.
• 46:37
  Speaker 2: I was like, that's what you get for looking after Phil.
• 46:40
  Speaker 4: I was like, I mean, it's incredible because now they're
• 46:43
  Speaker 4: living their best life. And her husband, who's worked every day,
• 46:46
  Speaker 4: he's never taken a break from when he was seventeen
• 46:48
  Speaker 4: years old. He's got six months of long servicely he's
• 46:50
  Speaker 4: taking that time off to travel around Australia and they're
• 46:52
  Speaker 4: going to live their best life. And yes, that money
• 46:55
  Speaker 4: wasn't essential because she didn't go through chemos, she didn't
• 46:59
  Speaker 4: go through treatment for it, but she met the criteria
• 47:03
  Speaker 4: and it's absolutely changed your life.
• 47:05
  Speaker 2: I feel like it's a very funny I guess paradigm
• 47:09
  Speaker 2: to go. Arguably, as much as that was literally traumatic,
• 47:13
  Speaker 2: also one of the best things that could have happened,
• 47:15
  Speaker 2: because it's literally shifted how her life works and what
• 47:18
  Speaker 2: her lifestyle looks like. And that's you know, never a
• 47:21
  Speaker 2: selling point for insurance, but it's so nice to know
• 47:24
  Speaker 2: that if you go through something traumatic and so traumatic
• 47:27
  Speaker 2: at that you're not going to be in a worse
• 47:30
  Speaker 2: off position, because a lot of the time, if you
• 47:32
  Speaker 2: go through this and you don't have that support, you're
• 47:35
  Speaker 2: out because you know, you might have exhausted your sick
• 47:37
  Speaker 2: leave and your boss might not be Phil Thompson, so
• 47:39
  Speaker 2: he's probably not as kind. You know, you would have
• 47:42
  Speaker 2: had to take a whole heap of unpaid leave. You're
• 47:44
  Speaker 2: taking a step back in your career, like everything's just
• 47:46
  Speaker 2: a bit up and arms you're probably even more stressed.
• 47:50
  Speaker 2: Like I am going to start looking into doing research
• 47:54
  Speaker 2: around the stress levels of people experiencing significant trauma like
• 47:58
  Speaker 2: medical trauma, and whether they have insurance or not, because
• 48:01
  Speaker 2: I could almost guarantee that if you don't have it
• 48:04
  Speaker 2: and you're going through that circumstance, the outcomes would be
• 48:07
  Speaker 2: worse because you are literally stressing and increasing your quartisol
• 48:11
  Speaker 2: levels and like having a really awful time as opposed
• 48:14
  Speaker 2: to when you feel supported and you know, you know
• 48:17
  Speaker 2: what all of that is covered for. Right now, I
• 48:19
  Speaker 2: just need to focus on getting better. Yes, I think
• 48:21
  Speaker 2: that there's a lot to it. But this conversation I
• 48:24
  Speaker 2: think has been really helpful. I have adored it. But
• 48:28
  Speaker 2: what a next steps for people who have listened to
• 48:30
  Speaker 2: this and they're like, well, I don't have live insurance,
• 48:32
  Speaker 2: I haven't set this up, I don't even know what
• 48:34
  Speaker 2: it is. What do we do and who do we
• 48:37
  Speaker 2: go and talk to?
• 48:38
  Speaker 4: So Le's me, Well, yes, me. The short answer, I
• 48:41
  Speaker 4: go to sky dot com dot U. But you know,
• 48:43
  Speaker 4: go check out your super fun see what you've got there,
• 48:45
  Speaker 4: because that's not junk covered. Don't ever cancel the cancel
• 48:48
  Speaker 4: at no before going and speaking to a financial advisor,
• 48:50
  Speaker 4: and then speak to a financial advisor about it. The
• 48:53
  Speaker 4: reason you speak to a financial advisor is because going direct,
• 48:57
  Speaker 4: there's only two insurance companies who will sell good products
• 49:00
  Speaker 4: direct to the consumer. Now, why don't all insurance companies
• 49:03
  Speaker 4: go direct. It's exactly like Cabri chocolate. You know, I
• 49:06
  Speaker 4: don't go to Tazzy and go to the Cabri factor
• 49:08
  Speaker 4: and buy my blocker chocolate. I go to Coals. It's
• 49:10
  Speaker 4: distributed through a third party. Cabrit make more money, Coals
• 49:14
  Speaker 4: make money, And it's more convenient and better for me
• 49:16
  Speaker 4: because it's a cheaper product. I don't need to get
• 49:18
  Speaker 4: plan tickets. So that's actually why insurance companies don't sell direct,
• 49:22
  Speaker 4: or very few do, so it's better to go through
• 49:25
  Speaker 4: a financial advisor. Also, financial advisors can structure it in
• 49:28
  Speaker 4: a much more tax effective way. And tax effective sounds sexy,
• 49:32
  Speaker 4: but it's really just simple. Financial advisors can set up
• 49:34
  Speaker 4: your insurance so it's paid from your super fund, but
• 49:37
  Speaker 4: not set up by your super fun so you can
• 49:39
  Speaker 4: move super in the future, but your super fund can
• 49:42
  Speaker 4: still pay the premiums and it's not locked to that.
• 49:44
  Speaker 2: That's what I do feel.
• 49:46
  Speaker 4: You're a smart cookie.
• 49:47
  Speaker 2: I'm not my financial advice.
• 49:50
  Speaker 4: So that's why financial advisor is the best way to
• 49:54
  Speaker 4: get this done because they can structure it that way,
• 49:57
  Speaker 4: and there are a whole bunch of other sexy features
• 49:58
  Speaker 4: and benefits and I won't go into too much, but
• 50:01
  Speaker 4: go and speak to a financial advisor after having a
• 50:03
  Speaker 4: look at your own superfund insurance. Most superfund insurance you'll
• 50:06
  Speaker 4: have maximum of two hundred and fifty thousand of life intimidy.
• 50:10
  Speaker 4: Now for most Australians that is completely under insured. So
• 50:14
  Speaker 4: you know, the Superannuation Regulator came out and said super
• 50:17
  Speaker 4: funds are doing an inadequate job when it comes to
• 50:19
  Speaker 4: insurance and when you look at the biggest super funds
• 50:22
  Speaker 4: in Australia, they give incredibly low levels of cover because
• 50:26
  Speaker 4: it impacts the level of funds that people have invested
• 50:29
  Speaker 4: that they're charging fees on. So there is a potential
• 50:32
  Speaker 4: conflict between the super funds and the insurance premiums. So
• 50:35
  Speaker 4: go and speak to a financial advisor and that will
• 50:37
  Speaker 4: help communicate what you need. If the advisor isn't asking
• 50:40
  Speaker 4: you about your medical history before they recommend an insurance provider,
• 50:45
  Speaker 4: for me, that's a red flag.
• 50:46
  Speaker 2: That's a massive red flag because.
• 50:48
  Speaker 4: The differences between insurers is huge based on your personal
• 50:52
  Speaker 4: medical history, and it should be chosen based on your
• 50:54
  Speaker 4: own personal medical history. So that's my recommendation. Find out
• 50:58
  Speaker 4: what you've got through super, then go and speak to
• 51:00
  Speaker 4: a financial advisor and making sure that they're having a
• 51:03
  Speaker 4: look through your medical history.
• 51:04
  Speaker 2: I think that's also an important point that you bring up,
• 51:07
  Speaker 2: actually about the medical history, because I think sometimes you
• 51:10
  Speaker 2: go hi giene factor, Gray, oh chat fellerg at my
• 51:13
  Speaker 2: insurance is sorted. But I used to say when I
• 51:16
  Speaker 2: was a financial advisor that I was always in the
• 51:18
  Speaker 2: most privileged position because you get to know your clients
• 51:21
  Speaker 2: deeper than anybody else. Right, Like you go to your GP,
• 51:24
  Speaker 2: they know all your medical history, but they don't know
• 51:26
  Speaker 2: your goals, your values, what's going on. When you are
• 51:29
  Speaker 2: a financial advisor, you're in this circumstance where you're talking
• 51:33
  Speaker 2: about these deep personal things with clients like hey, cool,
• 51:36
  Speaker 2: well how do you feel about your wife, because you know,
• 51:38
  Speaker 2: if I'm setting up this insurance and you actually want
• 51:41
  Speaker 2: to circumvent your wife and have it go straight to
• 51:43
  Speaker 2: your kids, if something happens to you, we need to
• 51:45
  Speaker 2: have that confidential conversation. You're going to have to tell
• 51:48
  Speaker 2: me about your personal medical history. I know it's a
• 51:50
  Speaker 2: bit uncomfortable, but don't worry. I'm an advisor. I literally
• 51:53
  Speaker 2: talk about this stuff every single day with you, with insurers,
• 51:56
  Speaker 2: with my team like this stuff. I'm not judging you.
• 51:59
  Speaker 2: I don't care what you've done, but you need to
• 52:00
  Speaker 2: disclose this information. And I always found myself in this
• 52:04
  Speaker 2: position where I'd be like far out, like I have
• 52:06
  Speaker 2: such a deep knowledge of clients. But I think you
• 52:09
  Speaker 2: also need to expect that too. As a client, you're
• 52:11
  Speaker 2: going to be asked some questions like why are they
• 52:14
  Speaker 2: asking me that? In a fact find But the reality
• 52:17
  Speaker 2: is so that you can be in the best possible
• 52:19
  Speaker 2: position because there's nothing worse. And thankfully it's never happened
• 52:24
  Speaker 2: in my business, but I know it's happened to other
• 52:26
  Speaker 2: advisors where they've gone to claim and then all of
• 52:28
  Speaker 2: a sudden, the claim's going to be denied because the
• 52:32
  Speaker 2: patient or the client didn't disclose something really important because
• 52:35
  Speaker 2: they're like, oh, I didn't really want to talk to
• 52:36
  Speaker 2: my advisor about it. It's all out on the table.
• 52:39
  Speaker 2: And to be honest, we don't care what you do,
• 52:41
  Speaker 2: how you do it, where you do it, or what
• 52:43
  Speaker 2: that looks like. We just need to know to put
• 52:45
  Speaker 2: you in the best possible position and then down in
• 52:48
  Speaker 2: the future, we have this deep relationship with you. If
• 52:51
  Speaker 2: something happens, we're the ones that have got your back
• 52:53
  Speaker 2: to make sure that that happens. So you're not doing
• 52:55
  Speaker 2: the paperwork, you're not following up when you actually need
• 52:58
  Speaker 2: to be focusing on getting better and dealing with you
• 53:01
  Speaker 2: and your family. So I think it's yeah to me,
• 53:04
  Speaker 2: I kind of missed financial advice.
• 53:06
  Speaker 4: You can get back and be an insurance advisor.
• 53:08
  Speaker 2: No, it's all right. I've got a job so far,
• 53:10
  Speaker 2: so good. Like I've just got this little we're doing
• 53:13
  Speaker 2: all right. I'll just flick all my clients to you.
• 53:16
  Speaker 1: Still.
• 53:16
  Speaker 4: I went to a cafe yesterday with Gabby and we're
• 53:19
  Speaker 4: at the cafe.
• 53:20
  Speaker 2: Hanging out with my team during work hours.
• 53:22
  Speaker 4: We went to a cafe where we first caught up
• 53:24
  Speaker 4: for coffee. Really and you show me She's on the
• 53:27
  Speaker 4: Money Facebook group and I had three thousand members. Cafe
• 53:29
  Speaker 4: was that it was pinky, and my mind was blown
• 53:33
  Speaker 4: when you had three thousand members in the face.
• 53:35
  Speaker 2: And I was like, it's just little. I don't know
• 53:36
  Speaker 2: what to do with it. So you're doing okay, We're
• 53:39
  Speaker 2: all right, all right, Well, it has been a pleasure
• 53:41
  Speaker 2: having you on to feel obviously, if anyone is interested,
• 53:45
  Speaker 2: visits sky dot com dot au. Sky is spelled s
• 53:48
  Speaker 2: k ye, and I will obviously make sure that all
• 53:52
  Speaker 2: of the information is in the show notes. You don't
• 53:53
  Speaker 2: have to remember that at all. Thank you so much
• 53:55
  Speaker 2: for coming. We love you and I will see you
• 53:58
  Speaker 2: for a Friday episode on Friday by The advice shared
• 54:08
  Speaker 2: on She's on the Money is general in nature and
• 54:10
  Speaker 2: does not consider your individual circumstances. She's on the Money
• 54:14
  Speaker 2: exists purely for educational purposes and should not be relied
• 54:18
  Speaker 2: upon to make an investment or financial decision. If you
• 54:21
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• 54:23
  Speaker 3: Read the PDS TMD and obtain appropriate financial.
• 54:26
  Speaker 2: Advice tailored towards your needs.
• 54:28
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• 54:32
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