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Personal Insurance & Chronic Illness: What’s Included & What’s Changed? · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money. My name's Tatasha Bamblet.
• 0:11
  Speaker 3: I'm a proud First Nations woman and I'm here to
• 0:14
  Speaker 3: acknowledge country. Hello, beautiful friends, we gather on the lands
• 0:17
  Speaker 3: of the Aboriginal people. We thank, acknowledge and respect the
• 0:20
  Speaker 3: Aboriginal people's land that we're gathering on today. Take pleasure
• 0:22
  Speaker 3: in all the land and respect all that you see.
• 0:25
  Speaker 3: She's on the Money podcast acknowledges culture, country, community and connections,
• 0:29
  Speaker 3: bringing you the tools, knowledge and resources for you to thrive.
• 0:32
  Speaker 4: Hello, our lovely listeners, and welcome to She's Other Money,
• 0:36
  Speaker 4: the podcast where we discuss all of the issues concerning
• 0:38
  Speaker 4: your wealth goals so that you can feel more in
• 0:41
  Speaker 4: control of your financial future. Let me paint you a
• 0:44
  Speaker 4: little picture. You work for a marketing company with a
• 0:48
  Speaker 4: pretty good office and online culture, and while the team
• 0:52
  Speaker 4: isn't mandated to come into the office, you've had to
• 0:54
  Speaker 4: work from home more than usual this year because you've
• 0:57
  Speaker 4: had some pretty debilitating cramps. But this is not unusual
• 1:02
  Speaker 4: for you because you're pretty sure you have endometriosis, a
• 1:04
  Speaker 4: condition that affects one in seven females and those assigned
• 1:08
  Speaker 4: female at birth and while you've considered getting an official
• 1:12
  Speaker 4: diagnosis and any necessary treatment, the process often involves surgical intervention,
• 1:17
  Speaker 4: which means more time off work, time off that you
• 1:20
  Speaker 4: aren't sure you can actually afford. In addition to the
• 1:23
  Speaker 4: physical pain, the financial pressure of taking unpaid leave is
• 1:26
  Speaker 4: totally stressing you out, leading to overwhelm and burnout. Unfortunately,
• 1:31
  Speaker 4: this isn't just a hypothetical for many of our listeners,
• 1:34
  Speaker 4: but an uncomfortable reality for many of you in the
• 1:37
  Speaker 4: community who re experiencing chronic and mental illness. On today's
• 1:41
  Speaker 4: deep Dive, we're going to be covering the impact these
• 1:43
  Speaker 4: issues might have on your personal finances and insurances, plus
• 1:48
  Speaker 4: what to consider before chatting to an insurance specialist. I'm
• 1:51
  Speaker 4: Victoria Devine and joining me today is none other than
• 1:55
  Speaker 4: Phil Thompson, the CEO of Skywealth.
• 1:59
  Speaker 2: Welcome back, mister Phil Thompson.
• 2:00
  Speaker 1: Thanks thanks for having me.
• 2:02
  Speaker 2: You've got less hair.
• 2:03
  Speaker 1: I do have less hair. I chopped it off looking
• 2:06
  Speaker 1: a little just slightly more professional.
• 2:08
  Speaker 2: Oh is that what we're going for?
• 2:10
  Speaker 1: Well, no, but that's what I've been told.
• 2:12
  Speaker 4: Because like, Sky act professional, but when you meet them,
• 2:16
  Speaker 4: you're like, oh, they're just fun guys.
• 2:18
  Speaker 2: Yeah, and we get that feedback a lot.
• 2:20
  Speaker 1: I always say, the what we do is incredibly serious,
• 2:24
  Speaker 1: but the way in which we behave doesn't need to
• 2:26
  Speaker 1: be too serious.
• 2:26
  Speaker 4: Absolutely, and I think that that's what makes it so nice.
• 2:31
  Speaker 4: It doesn't have to be like your dad's financial advisor,
• 2:33
  Speaker 4: right like, and I think that that's what people think of.
• 2:36
  Speaker 4: And I just found it so hilarious last time we
• 2:39
  Speaker 4: did content together because it was one of the first
• 2:41
  Speaker 4: times we had a video podcast and I'm so sorry,
• 2:45
  Speaker 4: but the amount of people that replied and they were like,
• 2:47
  Speaker 4: that's feel and I was like, yeah, like he's fun,
• 2:49
  Speaker 4: and they're like, this makes so much more sense as
• 2:51
  Speaker 4: to why you'd have a guy on the show. I'm like, yeah,
• 2:54
  Speaker 4: like he's actually a fun, really cool dude.
• 2:56
  Speaker 1: I tell you, I was a little bit self conscious
• 2:58
  Speaker 1: thinking do I sound like a sixty years No?
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  Speaker 4: But I think people just assume when you have a
• 3:03
  Speaker 4: male voice and you have a fair bit of authority
• 3:06
  Speaker 4: in the financial advice space, there's like a stereotype that
• 3:10
  Speaker 4: you probably wear a three piece suit never and I
• 3:14
  Speaker 4: don't even think, yeah, but you've probably never owned one either.
• 3:17
  Speaker 2: No, what do you get married in? Did you get
• 3:19
  Speaker 2: married in.
• 3:20
  Speaker 4: There you go, yeah, yeah, because you're like, I'm never
• 3:22
  Speaker 4: going to wear this again, exactly. All right, let's do
• 3:25
  Speaker 4: a little general advice disclaimer, because we are talking financial
• 3:29
  Speaker 4: advice today. Anything Phil says or does can and will
• 3:32
  Speaker 4: be held against that wrong disclaimer. Anything that we talk
• 3:36
  Speaker 4: about is obviously general in nature and doesn't take your
• 3:39
  Speaker 4: personal circumstances into account. But I think that people might
• 3:43
  Speaker 4: find this oddly specific.
• 3:45
  Speaker 1: Yeah. Some, I'm a financial visor, We've got our own
• 3:47
  Speaker 1: a for sale, but I'm not giving personal advice on
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  Speaker 1: this podcast.
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  Speaker 4: No, And we can't give personal advice because we don't
• 3:53
  Speaker 4: want to go to jail, and the ramifications of that
• 3:55
  Speaker 4: are actually five years in jail and a million dollars
• 3:58
  Speaker 4: of fines, and like, both of us can't afford that. No, Phil,
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  Speaker 4: this is a topic that my community and I have
• 4:04
  Speaker 4: been very eager to chat about for such a long time,
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  Speaker 4: and it's not just because of Endo. We've seen a
• 4:10
  Speaker 4: bunch of our community members share stories about their experiences
• 4:13
  Speaker 4: with chronic and mental illness and the challenges that they've
• 4:16
  Speaker 4: had to face and navigate when it comes to getting
• 4:18
  Speaker 4: insurance and accessing the support that they need and the
• 4:21
  Speaker 4: support that they deserve, and by the end of this episode,
• 4:24
  Speaker 4: we would love for them to have an updated understanding
• 4:27
  Speaker 4: of what is and isn't covered by default super plus
• 4:32
  Speaker 4: some recent changes to insurance and mental health claims. We're
• 4:35
  Speaker 4: going to go to a very quick break though, and
• 4:37
  Speaker 4: then when we get back, we're going to dive straight in.
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  Speaker 4: All right, Phil, I know that at the start of
• 4:46
  Speaker 4: this episode I shared a little hypothetical that was completely
• 4:49
  Speaker 4: unrelatable to you, but as the stats nerd that I am,
• 4:54
  Speaker 4: I wanted to bring a few more numbers to the
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  Speaker 4: table just to explain to how topical this conversation is
• 5:00
  Speaker 4: for our listeners and for our community, and something that
• 5:02
  Speaker 4: I know you've seen time and time again in Sky.
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  Speaker 4: According to the Australian Institute of Health and Welfare, around
• 5:09
  Speaker 4: one in five Australians have experienced mental illness in the
• 5:13
  Speaker 4: last twelve months.
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  Speaker 2: Does that surprise you.
• 5:15
  Speaker 1: Not by looking at our clients medical disclosures, not at all. No.
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  Speaker 4: Around half of those Australians, so about forty three percent,
• 5:23
  Speaker 4: have experienced mental illness during their lifetime.
• 5:26
  Speaker 1: Yeah. I mean, we'll talk about this a little bit
• 5:28
  Speaker 1: more later in the episode, because you know, talking about
• 5:31
  Speaker 1: chronic illness. Talking about mental health is really conversations I
• 5:34
  Speaker 1: have every single day with clients exactly.
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  Speaker 4: And in twenty twenty four to twenty twenty five, one
• 5:39
  Speaker 4: in ten Australians received Medicare subsidized mental health services, which
• 5:44
  Speaker 4: equates to two point eight million people. So this isn't
• 5:47
  Speaker 4: a little conversation, and these figures from my perspective, become
• 5:51
  Speaker 4: a lot little, a lot more alarming when it comes
• 5:54
  Speaker 4: to chronic illness, particularly in recent years, and estimated three
• 5:57
  Speaker 4: in five Australians are living with a chronic condition that
• 6:01
  Speaker 4: is a selected long term health condition. Anxiety, back problems
• 6:06
  Speaker 4: and depression top the list among females of all ages.
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  Speaker 4: Two point nine million female Australians are living with anxiety,
• 6:13
  Speaker 4: one point nine million with back problems, and one point
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  Speaker 4: eight million are living with depression. The prevalence of living
• 6:19
  Speaker 4: with one of those or more of those selected long
• 6:22
  Speaker 4: term health conditions is higher among women than men aged
• 6:25
  Speaker 4: fifteen to forty four, and as mentioned earlier, we know
• 6:29
  Speaker 4: that one in seven women in Australia are living with endo.
• 6:33
  Speaker 4: With this kind of prevalence among roughly fifty percent of
• 6:36
  Speaker 4: the population, you can quickly see just how much our
• 6:39
  Speaker 4: health influences our daily lives, things like work and study
• 6:43
  Speaker 4: and simply engaging with our family and friends can be
• 6:46
  Speaker 4: negatively impacted if you aren't getting the treatment that you need,
• 6:50
  Speaker 4: or we simply can't show up in the world in
• 6:52
  Speaker 4: the way that we really want to. And if illness
• 6:55
  Speaker 4: wasn't enough, feel the financial consequences of not being able
• 6:58
  Speaker 4: to go back to work, just as insult to injury,
• 7:01
  Speaker 4: having a chronic condition might mean that you aren't able
• 7:04
  Speaker 4: to work full time or reach the financial goals that
• 7:06
  Speaker 4: you'd imagined, even with a really high paying role. It
• 7:10
  Speaker 4: might even mean taking a pay cut to be able
• 7:13
  Speaker 4: to continue within your role. More than half of Australian
• 7:16
  Speaker 4: workers have taken sickly due to mental exhaustion, with almost
• 7:20
  Speaker 4: one third requiring time off in the past twelve months alone. So,
• 7:25
  Speaker 4: my friend Phil, it is no wonder we are all
• 7:29
  Speaker 4: burning out. And I'm probably preaching to the converted here,
• 7:32
  Speaker 4: but in your experience, have these numbers shifted in the
• 7:35
  Speaker 4: recent years.
• 7:36
  Speaker 1: Yeah, and it's been a big increase in claims, and
• 7:40
  Speaker 1: so this is why, you know, we look at insurances
• 7:43
  Speaker 1: like a bill, but it's really a safety net, a
• 7:45
  Speaker 1: financial safety net. So There's been two point two billion
• 7:48
  Speaker 1: dollars worth of claims paid out for mental health conditions
• 7:53
  Speaker 1: just in twenty twenty five.
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  Speaker 2: I was about to say that was just in one year.
• 7:55
  Speaker 1: Yeah, and this is like double more than what it
• 7:58
  Speaker 1: was five years ago. So it's a steep increase. Now
• 8:00
  Speaker 1: one in three claims are paid out for mental health
• 8:04
  Speaker 1: for TEPDY, one in five for income protection, and that's
• 8:08
  Speaker 1: just one area of claims. And so it just shows
• 8:12
  Speaker 1: the importance of making sure we have cover in place.
• 8:15
  Speaker 1: We have that safety net behind us should we ever
• 8:18
  Speaker 1: need to claim.
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  Speaker 4: And for me, it just feels like a piece of
• 8:21
  Speaker 4: the puzzle, it's a very large piece, but I feel
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  Speaker 4: like it's increasing because we are just so done, Like
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  Speaker 4: post COVID, we thought like at the end of the tunnel,
• 8:31
  Speaker 4: feel it's coming, everything's going to go back to normal
• 8:33
  Speaker 4: and feel better.
• 8:34
  Speaker 2: And do better, and it's not.
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  Speaker 4: It just feels like a consistent pylon, which just makes
• 8:38
  Speaker 4: chronic and mental health conditions even worse. So obviously, when
• 8:42
  Speaker 4: people are making claims, it's because they need the support
• 8:45
  Speaker 4: to stay engaged in their wider community, whether it's recovering
• 8:48
  Speaker 4: and returning to the workplace or having the resources to
• 8:51
  Speaker 4: simply participate in society, and what I mean by that
• 8:54
  Speaker 4: is to see their family and friends, to be able
• 8:57
  Speaker 4: to stay active and healthy and not only physically but
• 9:01
  Speaker 4: also mentally all of that. And I know that we
• 9:04
  Speaker 4: briefly touched on this earlier, but let's say this doesn't
• 9:07
  Speaker 4: affect you personally, how might it affect you as a
• 9:10
  Speaker 4: member of society. So in twenty twenty three twenty twenty four,
• 9:15
  Speaker 4: chronic conditions cost the Australian healthcare system ninety eight point
• 9:20
  Speaker 4: five billion dollars, which is accounting for more than half,
• 9:25
  Speaker 4: So roughly fifty five percent of all health system expenditure
• 9:30
  Speaker 4: on disease and injury in Australia, or approximately three thousand,
• 9:34
  Speaker 4: five hundred and ninety dollars per person.
• 9:37
  Speaker 2: Isn't that wild?
• 9:38
  Speaker 1: Yeah? That was a bee. That was a billiand almost
• 9:41
  Speaker 1: billion dred billion.
• 9:42
  Speaker 2: Billions and billion in one year.
• 9:46
  Speaker 1: Yeah, And it just shows how important it is to
• 9:49
  Speaker 1: make sure we have, you know, a safety net. The
• 9:51
  Speaker 1: government is a huge safety net in this one hundred
• 9:54
  Speaker 1: billion dollars diabolical.
• 9:56
  Speaker 4: And when it comes to workforce employment, Australia has lo
• 10:00
  Speaker 4: around five hundred and thirty seven thousand person years of
• 10:04
  Speaker 4: full time employment and approximately forty seven thousand person years
• 10:09
  Speaker 4: of PT employment due to chronic disease. So it's not
• 10:13
  Speaker 4: just a big issue for the individual, but one with
• 10:16
  Speaker 4: widespread economic and socioeconomic implications.
• 10:19
  Speaker 2: So think of it this way. If a large chunk
• 10:21
  Speaker 2: of our society can't.
• 10:23
  Speaker 4: Participate in the workforce, as in, they can't contribute to
• 10:26
  Speaker 4: the products and services and ideas that are shaping our future,
• 10:29
  Speaker 4: how our products and services and ideas then impact it.
• 10:33
  Speaker 4: They become less diverse, they become less accessible, they become
• 10:36
  Speaker 4: less inclusive because we're making things without a whole group
• 10:40
  Speaker 4: of people representative of our community.
• 10:42
  Speaker 2: And I think that's a pretty damn big deal.
• 10:45
  Speaker 1: Phil.
• 10:45
  Speaker 4: How have you found that having the right insurances or
• 10:48
  Speaker 4: coverage has helped people find some sense of normalcy after
• 10:53
  Speaker 4: a diagnosis or medical event.
• 10:54
  Speaker 1: It's super important to think about these things before you
• 10:57
  Speaker 1: have these chronic conditions. You know, we talk a lot
• 10:59
  Speaker 1: about app cations and how do we apply when we
• 11:02
  Speaker 1: have them, and it does make it more difficult. So
• 11:05
  Speaker 1: setting these policies up before you have these claimable events
• 11:08
  Speaker 1: are so important, and so in our numbers, we'd like
• 11:11
  Speaker 1: to track data he's a data in our business. We've
• 11:14
  Speaker 1: got just under eleven million dollars of claims paid out.
• 11:17
  Speaker 4: Yeah, I actually thought that I was stats Queen and
• 11:20
  Speaker 4: you were like, hold on, hold on, hold on, I'm
• 11:22
  Speaker 4: stats king.
• 11:23
  Speaker 2: Like it's actually crazy.
• 11:25
  Speaker 1: Like clean up a lot of our data and our
• 11:27
  Speaker 1: business and so we can just report on it.
• 11:29
  Speaker 2: It's actually insane.
• 11:30
  Speaker 4: In fact, if you are just listening to the show
• 11:33
  Speaker 4: and you don't even want to do your insurances, still
• 11:35
  Speaker 4: head to Fill's website because the amount of just stats
• 11:38
  Speaker 4: and facts in like real time data that you've just
• 11:40
  Speaker 4: got rolling out on the website all the time to
• 11:43
  Speaker 4: be like, well, actually this week we saved our clients
• 11:46
  Speaker 4: this amount and this is what we did, and this
• 11:48
  Speaker 4: is how many claims were paid to Skywealth people in
• 11:50
  Speaker 4: this year, and we did forty one claims.
• 11:52
  Speaker 2: Here, I'm just like, how it's magic.
• 11:55
  Speaker 1: It's called AI I know, but it's just like crazy. Yeah,
• 11:59
  Speaker 1: but but I mean these are real people and this
• 12:01
  Speaker 1: is a thing we help our clients go through the claims. Yeah,
• 12:04
  Speaker 1: we help plenty of people set up their policies for
• 12:07
  Speaker 1: that safety net, but the forty one individuals who have claimed,
• 12:10
  Speaker 1: you know, we're talking about death claims. They're talking about
• 12:12
  Speaker 1: cancer claims. We're talking about ongoing income protection. So we've
• 12:15
  Speaker 1: got currently nine people on ongoing income protection claims. And
• 12:20
  Speaker 1: we look at the average claim that you know, we've
• 12:23
  Speaker 1: paid out for our clients is two hundred and sixty
• 12:26
  Speaker 1: three thousand dollars versus the average premiums, like ninety five
• 12:31
  Speaker 1: years of average client premiums paid in a single claim
• 12:33
  Speaker 1: for each other. Yeah, and so we help people make
• 12:37
  Speaker 1: these claims, and it's not just money in the bank.
• 12:39
  Speaker 1: Like you know, we had a father who had his
• 12:42
  Speaker 1: wife pass away. He's got two young kids and had
• 12:46
  Speaker 1: different policies set up just because it was a right
• 12:49
  Speaker 1: for him or for his wife, three different life insurance policies.
• 12:53
  Speaker 1: That's three and a half million dollars that ended up
• 12:55
  Speaker 1: being paid. Now, that doesn't help solve their albums.
• 13:01
  Speaker 4: Because we give the money back in a heartbeat to
• 13:03
  Speaker 4: have our normalcy back and our life back and our
• 13:05
  Speaker 4: wife back.
• 13:06
  Speaker 2: Right, But that's just not what's going to happen.
• 13:09
  Speaker 4: But having three and a half million dollars to raise
• 13:11
  Speaker 4: two kids on your own is life changing.
• 13:14
  Speaker 1: And look, three and a half million dollars is not
• 13:16
  Speaker 1: the normal amount, like this this case was we actually
• 13:21
  Speaker 1: added a lot more life insurance because it ended up
• 13:23
  Speaker 1: being free, and so it was like, well, we've crunched
• 13:25
  Speaker 1: the numbers. Not having life insurance is actually going to
• 13:27
  Speaker 1: cost you more, and then not really thinking that that
• 13:32
  Speaker 1: was the main purpose of that, and this individual had
• 13:35
  Speaker 1: a car accident, passed away then, and it meant that
• 13:39
  Speaker 1: there was money in the bank for this grieving, you know, widow, widow,
• 13:44
  Speaker 1: a single father now to be able to help manage
• 13:47
  Speaker 1: that situation moving forward, and just money in the bank
• 13:50
  Speaker 1: account just allows a freedom just to do what you
• 13:53
  Speaker 1: need to be doing in that time, to just put
• 13:56
  Speaker 1: down everything and focus on the kids, focus on your
• 13:58
  Speaker 1: own grieving, focus on your your own mental health period
• 14:01
  Speaker 1: of time.
• 14:02
  Speaker 4: Like it's yeah, it's crazy to think that these things happen,
• 14:06
  Speaker 4: and unfortunately, having worked in financial advice, you do see
• 14:10
  Speaker 4: them happen quite intimately, and it's so sad every single time.
• 14:16
  Speaker 4: But there's this sense of I don't know, just peace
• 14:20
  Speaker 4: that is provided or was provided to me when you
• 14:22
  Speaker 4: could go, okay, cool, I actually can have your back here,
• 14:25
  Speaker 4: let me go and do this and this, and then
• 14:27
  Speaker 4: you could technically go and quit your job and grief
• 14:30
  Speaker 4: for the entire year, or spend the entire year just
• 14:33
  Speaker 4: structuring your kids' lives because you didn't sign up to
• 14:36
  Speaker 4: this change that wouldn't have been afforded in any other circumstance.
• 14:40
  Speaker 1: Yeah, and that's a life insurance claim. They are the
• 14:42
  Speaker 1: hardest to deal with. The chronic illnesses are the other
• 14:46
  Speaker 1: claims that we work with, where you know, ongoing income
• 14:49
  Speaker 1: protection claims is really a lifesaver. We've got a client
• 14:52
  Speaker 1: who is, you know, struggling to pay the mortgage, and
• 14:56
  Speaker 1: you know, the banks are coming after them for that
• 14:59
  Speaker 1: mortgage payment, you know, where they're supporting writing letters to
• 15:03
  Speaker 1: the bank saying, hey, we think you shouldn't be trying
• 15:06
  Speaker 1: to take this person's house off them. You back off
• 15:08
  Speaker 1: because this is likely going to lead to a tap
• 15:11
  Speaker 1: at E payment which is going to fully clear that mortgage.
• 15:14
  Speaker 1: So back the heck off because of a chronic injury.
• 15:19
  Speaker 1: That meant that our client can't work likely ever again.
• 15:23
  Speaker 4: Yeah, and I think that that's where I don't know,
• 15:26
  Speaker 4: I've had these conversations before with people in our community.
• 15:29
  Speaker 4: They're like, I could just do it myself. I'm like,
• 15:30
  Speaker 4: just don't. Just don't do it yourself. Because not only
• 15:33
  Speaker 4: are you going to have somebody who's able to look
• 15:35
  Speaker 4: at Advisor only policies as well as the policies that
• 15:38
  Speaker 4: are available to the retail client and find the best
• 15:41
  Speaker 4: solution for you. They are so crafty at doing it
• 15:43
  Speaker 4: and fitting all the puzzle pieces together. But at claims time,
• 15:47
  Speaker 4: you're going to have someone on your team, like instead
• 15:49
  Speaker 4: of you having to do all of the paperwork and
• 15:51
  Speaker 4: all of the planning. You pick up the phone and
• 15:53
  Speaker 4: you say, Phil, things have gone wrong, and Pheel will say,
• 15:57
  Speaker 4: I will call you back, I will sort this out,
• 15:59
  Speaker 4: and I will let you know steps And that to
• 16:01
  Speaker 4: me is priceless. And we have had and I can
• 16:03
  Speaker 4: talk to you about this offare because I'm not putting
• 16:06
  Speaker 4: it on the podcast, but I have had some people
• 16:08
  Speaker 4: in my community message me and say, Phil has been
• 16:11
  Speaker 4: incredible during this period of time that otherwise we would
• 16:14
  Speaker 4: have been heads in the sand and.
• 16:16
  Speaker 2: Just filled with grief.
• 16:18
  Speaker 4: And I just I'm so grateful that your paths have
• 16:20
  Speaker 4: crossed because people are genuinely in better situations, and obviously
• 16:26
  Speaker 4: you and I both are on the same page of
• 16:28
  Speaker 4: thinking everybody should have this, and I think it's wonderful
• 16:32
  Speaker 4: that resources and coverage like this exist to support those
• 16:36
  Speaker 4: in our society who really need it. But I do
• 16:38
  Speaker 4: wonder why we are still experiencing such stigma around mental
• 16:45
  Speaker 4: health and chronic illness and accessing support, particularly financial support.
• 16:49
  Speaker 4: And by stigma, I mean really unfair perceptions that people
• 16:53
  Speaker 4: are either over exaggerating or like they're putting it on
• 16:56
  Speaker 4: for attention, or they are seeking a diagnosis for one
• 16:59
  Speaker 4: can or another because it's trendy, like that one's driving
• 17:03
  Speaker 4: me up the wall, or doesn't have chronic fatigue. They're
• 17:07
  Speaker 4: just lazy and you should just like suck it up,
• 17:10
  Speaker 4: like this stuff drives me insane, Phil, What are the
• 17:13
  Speaker 4: dangers of this type of stereotyping?
• 17:16
  Speaker 1: Yeah, I mean, like, you know, there is this idea
• 17:19
  Speaker 1: that everyone has it these days, and it's not that untrue.
• 17:22
  Speaker 1: Like forty three percent of Australians have experience and mental
• 17:25
  Speaker 1: health condition as you talked about at the top, and
• 17:27
  Speaker 1: it's very common. You know, one in eight Australians wait
• 17:31
  Speaker 1: ten years before first asking for help, which is an insane.
• 17:36
  Speaker 4: My word of the month is diabolical, Yeah, and your
• 17:39
  Speaker 4: diabolical diabolical.
• 17:41
  Speaker 1: And like eight hundred thousand Australians have severe mental health illness. Yeah,
• 17:46
  Speaker 1: only three hundred thousand are permanently incapacitated. Most conditions come
• 17:50
  Speaker 1: and go, so they're in and out of their mental
• 17:53
  Speaker 1: health illnesses. And that's exactly what products like income protection are. Therefore,
• 17:59
  Speaker 1: as you are experiencing that illness, you can replace your
• 18:02
  Speaker 1: income because you need to take time to rest and recover,
• 18:06
  Speaker 1: and so that pays a monthly payment, so it's not
• 18:09
  Speaker 1: all or nothing. You can come in and out. And
• 18:12
  Speaker 1: you know, given five hundred thousand peoples are coming in
• 18:14
  Speaker 1: and out of that kind of experience throughout their life,
• 18:18
  Speaker 1: only three hundred thousand people are fully disabled because of
• 18:21
  Speaker 1: that mental health condition. And so you know, financial stress
• 18:25
  Speaker 1: is the number one driver for mental health conditions, like
• 18:29
  Speaker 1: the you know, i'd work closely with insurers and you
• 18:32
  Speaker 1: talk to the actuaries. As soon as interest rates go up,
• 18:35
  Speaker 1: their claim statistics go up. And so knowing that financial
• 18:39
  Speaker 1: stress is the major driver for mental health conditions is
• 18:42
  Speaker 1: a really important thing to go how do we have
• 18:44
  Speaker 1: a safety net for ourselves, whether it is a cash
• 18:47
  Speaker 1: flow buffer, whether it is listening shues on the money
• 18:49
  Speaker 1: and studying investing, Like, not having financial stress in your
• 18:52
  Speaker 1: life is the best mental health treatment, maybe not the
• 18:56
  Speaker 1: best mental health tree, very very helpful.
• 18:59
  Speaker 4: And every one will say things like money doesn't solve
• 19:02
  Speaker 4: all your problems, or money doesn't create happiness, or you know.
• 19:06
  Speaker 2: It's not the be all in door. You know what,
• 19:08
  Speaker 2: the stats don't lie kind of can be it's.
• 19:11
  Speaker 1: Not solving a problem. But if it's a driver of
• 19:12
  Speaker 1: financial stress.
• 19:13
  Speaker 4: Exactly like if you are having if you are having
• 19:17
  Speaker 4: trouble with money, it is going to impact your mental health.
• 19:22
  Speaker 4: If you have money, that doesn't mean that you won't
• 19:24
  Speaker 4: have mental health, but you are significantly less likely to
• 19:27
  Speaker 4: experience it.
• 19:28
  Speaker 2: I get it.
• 19:29
  Speaker 4: I've been in oodles of debt before and it is crippling.
• 19:33
  Speaker 2: It is all you think about. It is like it
• 19:35
  Speaker 2: is the worst. Honestly, it sucks.
• 19:38
  Speaker 4: But I think that minimizing it is even worse for
• 19:42
  Speaker 4: the community because then we don't reach out and we
• 19:44
  Speaker 4: don't ask for help. And it goes back to that
• 19:46
  Speaker 4: stat you said that one in eight Australians it's got
• 19:48
  Speaker 4: to wait ten years before asking for help.
• 19:52
  Speaker 2: What aren't we about matship.
• 19:54
  Speaker 4: And camaraderie Like no, anyway, I feel like it's almost
• 19:58
  Speaker 4: as if we turn away from but we also turn
• 20:01
  Speaker 4: away from a sense of social responsibility of supporting those
• 20:05
  Speaker 4: who are living with lifelong conditions.
• 20:07
  Speaker 2: And it's a really weird.
• 20:09
  Speaker 4: Phenomenon, especially when there are so many of us or
• 20:12
  Speaker 4: will be affected in our lifetimes. So, Phil, let's talk
• 20:18
  Speaker 4: what's changing and what's already changed. Have you got some
• 20:21
  Speaker 4: good news? Because I feel like we're getting off track
• 20:23
  Speaker 4: and going like this is bad, this is not great.
• 20:26
  Speaker 2: Oh my gosh. So what's the good news?
• 20:28
  Speaker 1: Okay, So there's a few things changing. So we talked
• 20:30
  Speaker 1: about this last time, that genetic tests are changing their rules,
• 20:33
  Speaker 1: so there was legislation changes. Insurers can't use genetic tests
• 20:38
  Speaker 1: when you don't have family history but you just want
• 20:41
  Speaker 1: to know more about your your health, so they can't
• 20:43
  Speaker 1: use that against you. Do it from one October twenty
• 20:46
  Speaker 1: twenty sorry eighth to October twenty twenty six, and so
• 20:50
  Speaker 1: they can still do it today. I actually had a
• 20:52
  Speaker 1: client yesterday where they future genetic tests and there is
• 20:56
  Speaker 1: one insuran who's scrapped it already, but everyone else is
• 20:59
  Speaker 1: waiting until the dead line.
• 21:00
  Speaker 4: Yeah, because they can deny claims and they can deny applications.
• 21:04
  Speaker 4: Get it's all about risk management, but it drives me
• 21:07
  Speaker 4: up the wall because I'm like, do you just want
• 21:09
  Speaker 4: me to sit on this? Because I will sit on
• 21:11
  Speaker 4: this until the eighth of October and I will submit
• 21:12
  Speaker 4: it on the eighth of October, and you can't do
• 21:14
  Speaker 4: anything about that. What do you want me to do? Like,
• 21:17
  Speaker 4: I'm going to gain the system obviously? Oh what else
• 21:20
  Speaker 4: have you got?
• 21:21
  Speaker 1: There is another thing whereby there is a life Code
• 21:24
  Speaker 1: of Practice. Now I'm going pretty deep and geeking out
• 21:26
  Speaker 1: a little bit here, but there's life code of Practices
• 21:29
  Speaker 1: that it governs how life insurance companies need to manage
• 21:32
  Speaker 1: their business. So mental health is a massive drag on
• 21:37
  Speaker 1: the claim statistics. When it comes to insurers, they're all
• 21:40
  Speaker 1: thinking about how do we not bleed cash because they're
• 21:43
  Speaker 1: not pricing their products accurately versus the claim statistics, and
• 21:47
  Speaker 1: so the code of practice. In the recent review, there
• 21:50
  Speaker 1: was legal advice that the independent review came out and
• 21:54
  Speaker 1: said that insurers can't blanket remove mental health condition from
• 21:58
  Speaker 1: life insurance contracts. And so that's a big one that
• 22:02
  Speaker 1: is big now historically insurance.
• 22:04
  Speaker 2: Everyone's listening, it's like, what's that even mean?
• 22:07
  Speaker 1: Yeah, insurers never never used to, but I actually I've
• 22:10
  Speaker 1: spoken many times. I actually thought they were going to
• 22:12
  Speaker 1: start doing it. Now there's always this question is it
• 22:15
  Speaker 1: actually discrimination, and so you know, this independent review came
• 22:19
  Speaker 1: and said, yes, it is discrimination, removing mental health from
• 22:22
  Speaker 1: all life insurance contracts. So that's the good news. Now,
• 22:26
  Speaker 1: one thing that they said that they can do is
• 22:29
  Speaker 1: limit benefits for mental health claims or they can change
• 22:32
  Speaker 1: kind of the contracts to manage that claim experience. And
• 22:37
  Speaker 1: so you know, that's some of the things that they're changing.
• 22:40
  Speaker 1: You know, other things like claims and recovery focused is
• 22:44
  Speaker 1: a bigger part of it, so you know, helping clients
• 22:46
  Speaker 1: get back to full health. And so I think it's.
• 22:49
  Speaker 4: So important because ultimately that's what we want, Like, that's
• 22:51
  Speaker 4: what we want personally, Like ninety nine percent of people
• 22:55
  Speaker 4: on claim don't want to stay on claim exactly.
• 22:58
  Speaker 1: And this is the thing that I find really interesting
• 23:01
  Speaker 1: about insurance companies is insurance companies are the only partners
• 23:07
  Speaker 1: with an individual going through a chronic illness that is
• 23:10
  Speaker 1: financially incentivize them to get back to full health. Yeah,
• 23:13
  Speaker 1: and so you know, it is an interesting dynamic. Everyone thinks, oh,
• 23:16
  Speaker 1: they just want to kick me off claim, so they
• 23:18
  Speaker 1: don't need to pay me now. They want you to
• 23:20
  Speaker 1: go back to full health.
• 23:21
  Speaker 4: Because if they kick you off claim, I promise you'll
• 23:24
  Speaker 4: be back. So they actually want you to completely properly recover,
• 23:28
  Speaker 4: not just go, oh, let's get them off claim because
• 23:30
  Speaker 4: if we give them a few more therapy sessions, they'll
• 23:32
  Speaker 4: be good to go. And then you have burned out
• 23:34
  Speaker 4: the year after and they're on a bigger claim. Like
• 23:37
  Speaker 4: that's not actually in their best interests, is it?
• 23:40
  Speaker 1: Yeah, exactly and so and the other thing is there
• 23:43
  Speaker 1: are kind of like workplace you know, chronic illness support
• 23:46
  Speaker 1: and policies, flexible working environments that is helping people. So
• 23:49
  Speaker 1: you know, seventy nine percent of people with enemy crirosis
• 23:52
  Speaker 1: say that working from home makes symptoms much more manageable totally.
• 23:57
  Speaker 4: And the amount of friends that I have that have
• 24:00
  Speaker 4: or have suspected endough and go into the office and
• 24:04
  Speaker 4: deal with it and it's impacting their productivity and like,
• 24:08
  Speaker 4: you can't just be comfortable, and like, from a female perspective, Phiel,
• 24:12
  Speaker 4: that means maybe wearing your super comfy pants and being
• 24:15
  Speaker 4: able to pop to the microwave, wearing your slippers and
• 24:18
  Speaker 4: heat up your weak pack a few more times, like personally,
• 24:22
  Speaker 4: I'm not that comfortable doing that in the office, Like
• 24:25
  Speaker 4: I'm just going.
• 24:25
  Speaker 2: Oh, I'll just manage this a little bit more.
• 24:27
  Speaker 4: Privately because I don't want to talk about it, like
• 24:29
  Speaker 4: I just want to get on with life, and like
• 24:31
  Speaker 4: I get it. But it's crazy how many employers just go, no,
• 24:35
  Speaker 4: you need to be in the office. So it does
• 24:37
  Speaker 4: sound like there are some really promising changes underway, not
• 24:40
  Speaker 4: only for people with existing health conditions, but for members
• 24:43
  Speaker 4: of our community who suspect a diagnosis but are maybe
• 24:47
  Speaker 4: too afraid to seek one for fear of the financial implications.
• 24:51
  Speaker 4: And it's also sounding like the industry is shifting from
• 24:54
  Speaker 4: treating clients like a number or a case to close
• 24:58
  Speaker 4: and more like they're people who are finally being seen
• 25:02
  Speaker 4: as whole humans who get a holistic plan, and that
• 25:05
  Speaker 4: workplaces are slowly adapting their policies to keep people within
• 25:09
  Speaker 4: the workforce for longer, which I think is very very
• 25:11
  Speaker 4: cool stuff. All right, after the break, we're going to
• 25:13
  Speaker 4: be running through a few case studies inspired by our
• 25:16
  Speaker 4: Shees on the Money community members to help explore what
• 25:19
  Speaker 4: you might consider before speaking to an insurance specialist. So
• 25:22
  Speaker 4: guys don't go anywhere. All right, welcome back, my friends. Now,
• 25:30
  Speaker 4: all of those updates are well and good, but how
• 25:34
  Speaker 4: do they actually apply to real world scenarios? Because I
• 25:37
  Speaker 4: know you went pretty deep before, Phil, and we get it,
• 25:40
  Speaker 4: and policy change is very exciting for you and I.
• 25:43
  Speaker 2: But most people are.
• 25:44
  Speaker 4: Normal and most people go, yeah, but how does this
• 25:47
  Speaker 4: impact me? So we probably should get to that. We've
• 25:50
  Speaker 4: gathered a few examples from our community to see how
• 25:53
  Speaker 4: we might navigate this conversation, plus some things to consider
• 25:56
  Speaker 4: before speaking to an insurance specialist just like you now.
• 26:00
  Speaker 4: Our first example concerns a community member, Phil, who is
• 26:04
  Speaker 4: twenty six years old and working part time for a
• 26:07
  Speaker 4: media company. She's used up all of her sick leave
• 26:10
  Speaker 4: for the year, taking time off due to her ENDO.
• 26:13
  Speaker 4: She's facing a laparoscopy and treatment, which will mean another
• 26:17
  Speaker 4: week off work, but she may need follow up surgery
• 26:20
  Speaker 4: again later in the year. She has twenty two thousand
• 26:23
  Speaker 4: dollars in SUPER and hasn't organized any additional insurances outside
• 26:27
  Speaker 4: of it. She's worried that she won't be eligible to
• 26:30
  Speaker 4: use any of her income protection inside SUPER, and she's
• 26:33
  Speaker 4: more worried about using up all of her annual leave
• 26:35
  Speaker 4: and having to take unpaid leave, compromising her budget which
• 26:39
  Speaker 4: is already going towards so many medical bills. What next
• 26:42
  Speaker 4: steps might she consider in seeking additional insurances? Phil, what's
• 26:46
  Speaker 4: she going to do?
• 26:47
  Speaker 1: So in terms of I'm not sure if she's eligible
• 26:50
  Speaker 1: for incomputation, If you're off work for any health reason,
• 26:53
  Speaker 1: any sickness, you are eligible. Now, income protection has a
• 26:57
  Speaker 1: waiting period most super funds they're waiting per default is
• 27:01
  Speaker 1: ninety days. So that's the downside is you're going to
• 27:04
  Speaker 1: have to be off work for ninety days to be
• 27:06
  Speaker 1: eligible for those payments. But if that is the case,
• 27:10
  Speaker 1: then they will be eligible for a claim. But in
• 27:12
  Speaker 1: terms of additional insurances, one thing when it comes to
• 27:15
  Speaker 1: insurance is we can't cover things that are historical medical events.
• 27:20
  Speaker 1: So we can't go I'll get a new income protection
• 27:22
  Speaker 1: policy that will cover me for that ENDO treatment, which
• 27:26
  Speaker 1: is unfortunate, but that's how home and contents works, that's
• 27:29
  Speaker 1: how car insurance works, and so it's the same when
• 27:32
  Speaker 1: it comes to income protection. But it is important to
• 27:35
  Speaker 1: make sure, Okay, if we are depleting us sickly of
• 27:37
  Speaker 1: our annually for ENDO treatment, that we make sure we
• 27:41
  Speaker 1: are setting up our insurances should another chronic illness happen
• 27:44
  Speaker 1: in the future, or should something else pop up that
• 27:47
  Speaker 1: is unexpected, So definitely considering for young twenty six year
• 27:51
  Speaker 1: old income protection, from my mind, is the most important thing,
• 27:55
  Speaker 1: making sure that last till age sixty five, because if
• 27:58
  Speaker 1: you do have a chronic illness that is lasting for
• 28:01
  Speaker 1: a really long time, then you're covered for a really
• 28:04
  Speaker 1: long time. Your value of your income is massive for
• 28:07
  Speaker 1: a twenty six year old.
• 28:08
  Speaker 4: Everybody in our community should know by now, that's my
• 28:12
  Speaker 4: favorite type of insurance. Like I talk about it as
• 28:14
  Speaker 4: though it's like, you know, going to McDonald's and ordering something,
• 28:18
  Speaker 4: but like genuinely I love income protection because it's just
• 28:22
  Speaker 4: the best insurance. Like I know that there are six
• 28:25
  Speaker 4: million other types and other people will be like, oh well,
• 28:27
  Speaker 4: I never.
• 28:27
  Speaker 2: Claim to that, but I claimed this. I don't care.
• 28:29
  Speaker 4: Like across the board, if you taught me Victoria divine,
• 28:32
  Speaker 4: you have to get rid of every single insurance you've got,
• 28:35
  Speaker 4: business insurance, car insurance, life insurance. You have to get
• 28:38
  Speaker 4: rid of all of it, but you get to keep one.
• 28:40
  Speaker 4: Which one are you keeping?
• 28:41
  Speaker 2: Guaranteed? It's income protection, Like every day of the week.
• 28:44
  Speaker 1: Coming back to ask that in our business, we've had
• 28:46
  Speaker 1: sixteen climbs for income protection. Actually trauma is nineteen different.
• 28:51
  Speaker 2: Climes, so more likely to claim on trauma. But I
• 28:55
  Speaker 2: still like income protection.
• 28:56
  Speaker 1: Yeah, I prefer in come protection. It covers your income.
• 28:59
  Speaker 1: Is the basis of our wealth. Creation is our income,
• 29:03
  Speaker 1: and so protecting that is the basis of everyone's financial goals.
• 29:07
  Speaker 1: She'll be in coome protection.
• 29:08
  Speaker 2: One hundred percent.
• 29:09
  Speaker 4: And don't get me wrong, a trauma payout can be
• 29:12
  Speaker 4: really helpful as a big lump sum of cash deposited
• 29:15
  Speaker 4: into your account. But I will every day of the
• 29:17
  Speaker 4: week pick an ongoing revenue source to make sure that
• 29:20
  Speaker 4: I can still retire and still achieve my financial goals.
• 29:23
  Speaker 4: Because even though you know a couple of hundred grand
• 29:25
  Speaker 4: right now might be great, let's say you don't even
• 29:27
  Speaker 4: have to spend any on the trauma. You actually just
• 29:30
  Speaker 4: get to invest the whole amount. I don't want it.
• 29:32
  Speaker 4: I want an income guaranteed. Please, thank you. All right,
• 29:36
  Speaker 4: We've got another example. This community member is in her
• 29:39
  Speaker 4: early thirties and was advised to take stressly from a
• 29:42
  Speaker 4: high pressure job in the logistics industry. Feel as much
• 29:46
  Speaker 4: as she agrees, she does need it, she's worried about
• 29:48
  Speaker 4: the stigma and how it might affect her insurance. She
• 29:51
  Speaker 4: currently has income protection coverage, but no other insurance is
• 29:55
  Speaker 4: inside her super as she's not eligible due to health reasons.
• 30:00
  Speaker 4: No one might taking stress leave impact her insurance pil
• 30:03
  Speaker 4: and what might she consider when seeking more information about
• 30:05
  Speaker 4: coverage to help support her while she's supporting her mental
• 30:08
  Speaker 4: health well.
• 30:09
  Speaker 1: In terms of the stigma or not wanting to claim,
• 30:11
  Speaker 1: this is very common. I don't want to claim because
• 30:13
  Speaker 1: my premiums will go up. The great thing about life
• 30:16
  Speaker 1: insurance and income projection, if you claim, your premiums aren't
• 30:19
  Speaker 1: going to go up after you come back because they're
• 30:21
  Speaker 1: not allowed to, so there is no stigma.
• 30:23
  Speaker 4: It's not a current insurance where they can actually cook
• 30:26
  Speaker 4: you a little bit.
• 30:27
  Speaker 1: As not our home and content when they can increase
• 30:29
  Speaker 1: it because under Life Insurance Act, they're not allowed to
• 30:33
  Speaker 1: charge your high premim because of your claims experience. If
• 30:36
  Speaker 1: you've got the policy in place and so it is
• 30:38
  Speaker 1: really important. If you need the stress leave and you've
• 30:40
  Speaker 1: been advised, they've got medical advice to take stress leave,
• 30:44
  Speaker 1: then go and take time off work and use that
• 30:47
  Speaker 1: income projection that's the whole safety net that you've paid
• 30:50
  Speaker 1: premiums for and that you've set up, So go and
• 30:53
  Speaker 1: use it now when considering new policies that experience, that
• 30:58
  Speaker 1: mental health treatment and advicecommendation will impact the future policy.
• 31:02
  Speaker 1: So if you need to go and increase your income
• 31:04
  Speaker 1: protection in the future, they will consider that advice. Even
• 31:07
  Speaker 1: if you don't take stress leave, just a doctor advising
• 31:10
  Speaker 1: you to take time off work will have an impact
• 31:12
  Speaker 1: on any future policies. It won't impact your trauma, it
• 31:15
  Speaker 1: won't impact your life insurance, but it will likely impact
• 31:18
  Speaker 1: your disability cover and your income protection if you don't
• 31:22
  Speaker 1: already have it set up.
• 31:23
  Speaker 4: Yeah, all right, and have you got a case study
• 31:25
  Speaker 4: from your business that you might want to share?
• 31:28
  Speaker 2: I asked you to come prepared.
• 31:29
  Speaker 1: Yeah, as I said, we've got the data. So you know,
• 31:33
  Speaker 1: we had a young professional an osteo, you know, using
• 31:37
  Speaker 1: the hands all day long set up. The policies met
• 31:41
  Speaker 1: a few years ago, five years ago, and all six
• 31:43
  Speaker 1: years ago now was twenty eight at the time. Policy
• 31:45
  Speaker 1: went into force twenty one eighteen months later, not very
• 31:50
  Speaker 1: long holding the policy eighteen months later. Took some time
• 31:53
  Speaker 1: off work because I had some problems with their wrist
• 31:56
  Speaker 1: being an osteo that it can't work.
• 31:59
  Speaker 4: That would suck too, because you're completely mentally all there
• 32:02
  Speaker 4: and fine, but you risk hurt so you can't go
• 32:04
  Speaker 4: to work.
• 32:04
  Speaker 1: And there's one of these chronic injuries where it's like
• 32:07
  Speaker 1: I can just push through it, like it's just a
• 32:09
  Speaker 1: sore risk for the first week until it's not Anyway,
• 32:14
  Speaker 1: She's been on client for income protection for many years now,
• 32:18
  Speaker 1: and now second surgery in and still not better, and
• 32:23
  Speaker 1: so it's still not eligible. And this is going back
• 32:26
  Speaker 1: to the bank's following her up and saying paying this client.
• 32:30
  Speaker 1: This is the same client, and so we've had to
• 32:34
  Speaker 1: go into bat. We obviously wanted to go into bat
• 32:36
  Speaker 1: for this client and say, hey, we don't think it's
• 32:39
  Speaker 1: reasonably you should try and take this client's house off them.
• 32:42
  Speaker 1: They're making payments and they're making away. Second surgery in,
• 32:46
  Speaker 1: still not able to Now the good news is that
• 32:49
  Speaker 1: there is an own occupation TBD. So if this client
• 32:53
  Speaker 1: really can never go back to being an osteo, then
• 32:55
  Speaker 1: we've got that backup plan. And that was a part
• 32:58
  Speaker 1: of our letter to the bank is we've got a
• 32:59
  Speaker 1: teap policy if if she can't ever go back to work.
• 33:04
  Speaker 1: She's got that safety net. So your mortgage is going
• 33:06
  Speaker 1: to be clear. Settle down, Please give us.
• 33:09
  Speaker 2: A break, give us some time. We're working through it.
• 33:11
  Speaker 1: And so you know, in terms of what's been claims,
• 33:14
  Speaker 1: it's four nine hundred a month is paid. So you
• 33:16
  Speaker 1: know she's received over one one hundred and seventy thousand
• 33:20
  Speaker 1: dollars so far in income protection claims. I'm so glad
• 33:22
  Speaker 1: the policy is till age sixty five, so if she
• 33:26
  Speaker 1: can never work again, she'll continue to receive that. Now,
• 33:29
  Speaker 1: one thing to note, income protection will only cover a
• 33:32
  Speaker 1: percentage of your income. It five percent, so you're not
• 33:36
  Speaker 1: going to be financially better off on income protection claim
• 33:40
  Speaker 1: and so it is really important to make sure you
• 33:42
  Speaker 1: have that emergency fund. Make sure you also include TPD
• 33:45
  Speaker 1: as well, because if it does become a chronic illness
• 33:48
  Speaker 1: that you can never return to work again or go
• 33:50
  Speaker 1: back to your own work again, then you do have
• 33:53
  Speaker 1: that money coming in. So look really claim time when
• 33:57
  Speaker 1: it happens. When you have these injuries and illnesses, your
• 34:00
  Speaker 1: whole life just turns upside down, especially the chronic ones
• 34:03
  Speaker 1: that they kind of start to creep in and creep
• 34:06
  Speaker 1: up on you, and then it gets more stressful and
• 34:09
  Speaker 1: you realize, actually, I haven't mean I'm not actually okay, Yeah,
• 34:12
  Speaker 1: I'm not okay. I need to take time off work.
• 34:14
  Speaker 1: And these are the conversation we have with every one
• 34:17
  Speaker 1: of our claimants. And I would you know, you said,
• 34:19
  Speaker 1: Phil does all this. It's not me. I've got an
• 34:22
  Speaker 1: amazing team who do.
• 34:24
  Speaker 4: Personally, Phil does all this for me because Phil is
• 34:27
  Speaker 4: actually my direct advisor. But Phil has a big team
• 34:30
  Speaker 4: of lots of capable people, And you're right, I should
• 34:33
  Speaker 4: have acknowledged that.
• 34:34
  Speaker 1: Yeah, they much feel capable than me.
• 34:36
  Speaker 2: You know what, You're not wrong. You're not wrong.
• 34:39
  Speaker 4: One of the cool things about you and I is
• 34:41
  Speaker 4: we both believe we should always hire people who are
• 34:43
  Speaker 4: smarter than us.
• 34:44
  Speaker 2: Otherwise why are we hiring you?
• 34:46
  Speaker 4: So that's kind of a winner for your customers, but
• 34:49
  Speaker 4: not for me, because it turns out I've got the
• 34:50
  Speaker 4: dune advisors that.
• 34:51
  Speaker 2: What you mean?
• 34:52
  Speaker 1: You do? You?
• 34:53
  Speaker 2: All right?
• 34:54
  Speaker 4: Well, let's go into a quick fire around before we
• 34:57
  Speaker 4: finish of questions that have come from community Phil. While
• 35:01
  Speaker 4: we're on the subject of chronic and mental illness, will
• 35:05
  Speaker 4: NDIS budget cuts impact insurance and coverage for those currently
• 35:09
  Speaker 4: accessing it.
• 35:10
  Speaker 1: So in terms of your personal insurance cover, no, nothing changes.
• 35:14
  Speaker 1: Your personal insurance cover is a contract, so ndis changes
• 35:19
  Speaker 1: that may lead to more claims when it comes to
• 35:21
  Speaker 1: that insurance. So you know that won't have an issue
• 35:26
  Speaker 1: with any enforced policy.
• 35:28
  Speaker 2: I love that. All right.
• 35:30
  Speaker 4: Here's a question from the community. I've seen a psychologist.
• 35:34
  Speaker 4: I'm on antidepressants. Can I even get cover?
• 35:38
  Speaker 1: Yeah?
• 35:38
  Speaker 4: For sure, so good because I got it through you guys,
• 35:40
  Speaker 4: and I have seen a psychologist and I am on antidepressants.
• 35:43
  Speaker 2: So look at this walking case study exactly.
• 35:46
  Speaker 1: And you know, sometimes it's it's standard rates, so no exclusion,
• 35:50
  Speaker 1: but most times it is exclusions. You know, the higher
• 35:53
  Speaker 1: claims rates is meaning that insurans are getting more conservative
• 35:57
  Speaker 1: and over the I've specialized insurance over six years, and
• 36:01
  Speaker 1: it's getting worse and worse and worse. In terms of
• 36:03
  Speaker 1: when setting up a policy. That doesn't mean you shouldn't
• 36:06
  Speaker 1: be getting a policy. It actually means get a policy earlier. Yeah,
• 36:10
  Speaker 1: as early as possible, And so it is super important
• 36:14
  Speaker 1: that you can get policies in place, even if you've
• 36:16
  Speaker 1: been seeking treatment, even if you're taking ongoing medication.
• 36:20
  Speaker 4: Yeah, all right, here's another one that we get quite often.
• 36:24
  Speaker 2: Isn't the default coverage am my super enough?
• 36:26
  Speaker 1: So coming back to the contract, it isn't enough. So
• 36:30
  Speaker 1: as mental health, that legal advice I talked about earlier
• 36:34
  Speaker 1: said that they can't blanket rule out mental health, but
• 36:37
  Speaker 1: they can limit claims on mental health. And that's where
• 36:39
  Speaker 1: I think the trend will be going. Where default cover
• 36:42
  Speaker 1: through super it's a contract between the superfund and the
• 36:44
  Speaker 1: insurance provider, and so they can make changes whenever they want.
• 36:48
  Speaker 1: And so the average payout from an advisor is just
• 36:53
  Speaker 1: under five hundred and fifty thousand dollars for a retail
• 36:56
  Speaker 1: advice policy through the super fund, it's one hundred and
• 36:58
  Speaker 1: forty two thousand dollars. For TBD it's almost eight hundred
• 37:02
  Speaker 1: thousand dollars versus one hundred and fifty thousand dollars. So
• 37:04
  Speaker 1: the actual claims number for default versus going through an
• 37:07
  Speaker 1: advisor is going to be much different. And if you
• 37:10
  Speaker 1: are on claim, more money is better than less.
• 37:13
  Speaker 2: More money equal better.
• 37:14
  Speaker 4: Okay, I think we can work with that at this point,
• 37:17
  Speaker 4: and unfortunately we have run out of time. I have
• 37:20
  Speaker 4: been trying to race to the end and fit in
• 37:22
  Speaker 4: as many questions as possible, so we will definitely have
• 37:25
  Speaker 4: to get you back on the pod. But Phil, as always,
• 37:27
  Speaker 4: this has been such an insightful chat and I cannot
• 37:29
  Speaker 4: wait to get you back on the pod because I
• 37:31
  Speaker 4: have six million questions. But to wrap this because if
• 37:34
  Speaker 4: something hits a little bit too close to home today,
• 37:37
  Speaker 4: two things. First, your existing cover still works, but read
• 37:41
  Speaker 4: it before you assume the worst. Second, if all you
• 37:44
  Speaker 4: have is whatever your super fun gave you by default,
• 37:47
  Speaker 4: find out what you're actually holding.
• 37:49
  Speaker 2: Know the numbers.
• 37:50
  Speaker 4: Knowledge is power. And then when you're ready, what I
• 37:53
  Speaker 4: would personally be doing is checking out the Sky savings
• 37:57
  Speaker 4: on the sky website. It's actual, real audited data like
• 38:01
  Speaker 4: for light comparisons. You can find your super fund and
• 38:04
  Speaker 4: see what Skywelt's actual clients are paying when they move
• 38:07
  Speaker 4: from their default supercover to a retail policy which they
• 38:11
  Speaker 4: advise and set up for them. Honestly, I would say
• 38:13
  Speaker 4: it's incredibly eye opening. In fact, I just like playing
• 38:16
  Speaker 4: on there because I'm a data gal. I'm like, oh,
• 38:18
  Speaker 4: they've saved what? Oh okay, what's this one due versus
• 38:21
  Speaker 4: this one? In fact, I fact checked my own advice
• 38:23
  Speaker 4: on there because I was like, oh, I know what
• 38:25
  Speaker 4: that looks like. Well, what are other people doing? Because
• 38:27
  Speaker 4: I guess it comes back to this, most Australians deserve more.
• 38:32
  Speaker 4: The problem isn't the coverage available, it's the know how
• 38:35
  Speaker 4: behind it, and that is where you guys come in.
• 38:37
  Speaker 2: Which is the best.
• 38:38
  Speaker 4: My friends, I hope that this deep dive has brought
• 38:40
  Speaker 4: you some relief and maybe a little bit more confidence
• 38:43
  Speaker 4: when it comes to insurances and what happens when chronic
• 38:46
  Speaker 4: and mental illness enter the chat. If you're ready to
• 38:49
  Speaker 4: give your coverage a little bit of a health check,
• 38:52
  Speaker 4: please get in touch with Phil, but probably more his
• 38:55
  Speaker 4: team over at sky Wealth will make sure to add
• 38:58
  Speaker 4: all of the relevant references and link to the show
• 39:00
  Speaker 4: notes so that you never miss a beat. Please take
• 39:02
  Speaker 4: care of yourselves and of each other, and we'll see
• 39:05
  Speaker 4: you on Friday for some juicy dilemmas and yapps with
• 39:07
  Speaker 4: the gang.
• 39:08
  Speaker 2: Bye guys. The advice shared.
• 39:14
  Speaker 5: On She's on the Money is general in nature and
• 39:16
  Speaker 5: does not consider your individual circumstances. She's on the Money
• 39:20
  Speaker 5: exists purely for educational purposes and should not be relied
• 39:24
  Speaker 5: upon to make an investment or financial decision. If you
• 39:27
  Speaker 5: do choose to buy a financial product, read the PDS
• 39:30
  Speaker 5: TMD and obtain appropriate financial.
• 39:32
  Speaker 2: Advice tailored towards your needs.
• 39:34
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• 39:38
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