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Insurance Q&A · 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 Kerni Whoalbury and a waddery woman. And before
• 0:08
  Speaker 1: we get started on She's on the Money podcast, I
• 0:11
  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 4: Hello, and welcome to She's on the Money, the podcast
• 1:00
  Speaker 4: for millennials who want financial freedom.
• 1:02
  Speaker 2: Oh thanks, g, You're so welcome.
• 1:05
  Speaker 4: Questions about insurance, what you need, what's a waste of money,
• 1:09
  Speaker 4: and which you should prioritize are among the most common
• 1:13
  Speaker 4: questions we receive in the She's on the Money inbox.
• 1:15
  Speaker 4: And even though there's plenty of info out there on
• 1:18
  Speaker 4: the Internet, we've found that it can all just be
• 1:20
  Speaker 4: a little bit too much to wagh through on your own.
• 1:23
  Speaker 4: That's why today we're dedicating an entire episode to Insurance,
• 1:27
  Speaker 4: helping you to answer your burning questions about pretty much
• 1:30
  Speaker 4: every type of insurance under the sun. My name is
• 1:34
  Speaker 4: Georgia King, and joining me as she does each and
• 1:36
  Speaker 4: every week, is financial Advisor, Miss Victoria Divine V.
• 1:40
  Speaker 2: How are we hi? Well? How are you?
• 1:42
  Speaker 1: Yeah?
• 1:43
  Speaker 2: Good girl?
• 1:43
  Speaker 4: Good to see you. Am I right in thinking? V?
• 1:46
  Speaker 4: I don't know why I'm pretending here. I'm doing a
• 1:48
  Speaker 4: bit of acting. But all of the questions from today
• 1:51
  Speaker 4: are pulled from the community.
• 1:52
  Speaker 2: Is that correct? Yeah, So we did a little Q
• 1:55
  Speaker 2: and A on the Instagram story and said what do
• 1:57
  Speaker 2: you want to know about insurance? We're going to do
• 1:59
  Speaker 2: a Q and A. So this could be wild because
• 2:01
  Speaker 2: I didn't pick these questions. You did, and I mean,
• 2:04
  Speaker 2: arguably I should have picked them, but you wanted to
• 2:07
  Speaker 2: have a turn.
• 2:08
  Speaker 4: So that's good, exactly right. So the first question for
• 2:12
  Speaker 4: today it comes from multiple people, Sarah, yess Lily, Anita, Karl, Matt's, Annie, Jessica,
• 2:16
  Speaker 4: and Sophia. They all had the same pers all had
• 2:19
  Speaker 4: the same question, and that is what's the deal with
• 2:23
  Speaker 4: insurance inside your super All right? This is a very
• 2:26
  Speaker 4: good question and arguably a very popular question. Was that
• 2:30
  Speaker 4: really the only amount of people that asked this.
• 2:32
  Speaker 2: I feel like this would have been a really popular
• 2:34
  Speaker 2: one because so many people in our community always say
• 2:38
  Speaker 2: things like oh my gosh, no, I don't need income
• 2:40
  Speaker 2: protection or I don't need life insurance because it's inside subranuation.
• 2:43
  Speaker 2: But essentially, insurance inside subranuation is there to help obviously
• 2:48
  Speaker 2: provide for you and your loved ones if something happens
• 2:50
  Speaker 2: to you or you can't work anymore because of illness
• 2:53
  Speaker 2: or injury, and it's usually offered through a default subranuation
• 2:56
  Speaker 2: company or your employe sponsored super plan as cover their
• 2:59
  Speaker 2: negotia for you and their other employees, which is called
• 3:02
  Speaker 2: group insurance. And this is actually the number one way
• 3:05
  Speaker 2: that Australians have access to affordable insurance. And the big
• 3:09
  Speaker 2: part here is without the need for underwriting. So underwriting
• 3:13
  Speaker 2: is the process that you go through when you apply
• 3:16
  Speaker 2: for a policy outside of superannuation and sometimes inside of superranuation.
• 3:20
  Speaker 2: We're an underwriter who is somebody who works at insurance
• 3:24
  Speaker 2: company and their job is to look at each and
• 3:26
  Speaker 2: every single individual that comes into their insurance plan and says,
• 3:29
  Speaker 2: all right, let me have a quick look at g.
• 3:31
  Speaker 2: I want to see if she's going to be really
• 3:33
  Speaker 2: risky if we ensure her. Let's have a look at
• 3:36
  Speaker 2: her history of illness and injury and see what she's
• 3:39
  Speaker 2: like to insure, and then we're going to offer cover
• 3:43
  Speaker 2: based on that situation. If you're somebody who works in
• 3:46
  Speaker 2: a really risky industry, you might go, oh, my gosh,
• 3:48
  Speaker 2: like I have really limited superanuation options. We know that
• 3:53
  Speaker 2: people in the sex work industry, we know that people
• 3:55
  Speaker 2: in aviation often really struggle to get income protection insurance
• 4:01
  Speaker 2: because insurants look at them and go, no, absolutely not.
• 4:04
  Speaker 2: You're too risky. You're very likely to claim. Therefore, we
• 4:08
  Speaker 2: don't want to ensure you. I have a client actually
• 4:11
  Speaker 2: who's probably listening to this because she listens to everything.
• 4:13
  Speaker 2: So Hi, my friend. But she is a traffic controller,
• 4:16
  Speaker 2: so she isn't even in a plane. She just sits
• 4:19
  Speaker 2: in the tower every day directing planes coming in and
• 4:22
  Speaker 2: out of Melbourne International Airport, and she's not able to
• 4:25
  Speaker 2: get income protection because her job is deemed too risky
• 4:28
  Speaker 2: for insurers to want to take it on. So one
• 4:30
  Speaker 2: of the benefits of having these group policies is that
• 4:33
  Speaker 2: you don't need to go through that underwriting process and
• 4:36
  Speaker 2: you can access it very quickly. But when you have
• 4:40
  Speaker 2: insurance inside subranuation, which sounds like a really sexy option
• 4:43
  Speaker 2: because obviously inside supbranuation it's generally taxed at a lower
• 4:47
  Speaker 2: rate than income tax, so you're saving some money. It's
• 4:49
  Speaker 2: a bit of a money win. However, they're usually lackluster policies.
• 4:55
  Speaker 2: I would say, so if you've got life insurance, instead
• 4:58
  Speaker 2: of having the full amount of life insurance that maybe
• 5:00
  Speaker 2: Georgia you need, you have the default amount. And a
• 5:04
  Speaker 2: good example of this is a client that I recently
• 5:06
  Speaker 2: sent to my friend Phil, who a lot of you
• 5:08
  Speaker 2: guys in the Shees on the Money community know because
• 5:11
  Speaker 2: Phil is partnered with She's on the Money. I mean,
• 5:13
  Speaker 2: he doesn't pay us. I just really like his business
• 5:15
  Speaker 2: and what he does, and I no longer have the
• 5:16
  Speaker 2: capacity to do all of this work, so I send
• 5:19
  Speaker 2: a lot of it over to Phil Thompson at sky Wealth,
• 5:21
  Speaker 2: who does insurance only. So the thing I love about
• 5:25
  Speaker 2: him is that, you know, this isn't meant to be
• 5:26
  Speaker 2: like a Phil Thompson thing, but he'll love these g
• 5:28
  Speaker 2: He'll listen to this and be like, Wow, you're so
• 5:30
  Speaker 2: nice to me, And I'll be like never again. So
• 5:32
  Speaker 2: never again. But the thing I like about him is
• 5:35
  Speaker 2: it's really affordable to get advice from him. Instead of
• 5:37
  Speaker 2: thousands of dollars, he's a couple of hundred dollars to
• 5:40
  Speaker 2: do the advice for just your insurances, and that's a
• 5:44
  Speaker 2: much better position to be. And if you're like me,
• 5:45
  Speaker 2: I can't afford full service financial advice, but I want
• 5:48
  Speaker 2: a policy that only a financial advisor can access. And
• 5:51
  Speaker 2: I also want a financial advisor's advice on exactly what
• 5:54
  Speaker 2: I need or my family needs or whatever that is.
• 5:56
  Speaker 2: And I think for like three hundred and fifty dollars
• 5:58
  Speaker 2: or four hundred and fifty dollars, I can't remember, that's
• 6:00
  Speaker 2: like his total advice fee. Obviously, then you have to
• 6:03
  Speaker 2: pay for the actual insurance, but I think that's a
• 6:06
  Speaker 2: bit of a money in anyway. I digress, But essentially
• 6:09
  Speaker 2: they usually lower policies. So an example of this is
• 6:12
  Speaker 2: I sent someone from Cheese on the Money to fill
• 6:14
  Speaker 2: and they had one hundred and fifty thousand dollars of
• 6:16
  Speaker 2: life insurance and they're like, that's a lot of money.
• 6:18
  Speaker 2: But when we looked at it, they had two mortgages,
• 6:20
  Speaker 2: they had two young kids, they've got a husband, and
• 6:23
  Speaker 2: when we did their life insurance, they needed two and
• 6:25
  Speaker 2: a half million dollars worth of cover because that's the
• 6:27
  Speaker 2: stage of life that they're in. And unfortunately the superannuation
• 6:31
  Speaker 2: product had a cap and they were like, oh, you
• 6:33
  Speaker 2: can only go out to five hundred thousand dollars and
• 6:35
  Speaker 2: you can only claim for certain things, whereas a policy
• 6:38
  Speaker 2: that made more sense to them, that was set up
• 6:40
  Speaker 2: by a financial advisor makes more sense. So inside super
• 6:44
  Speaker 2: I love that there's a default, and that means that
• 6:46
  Speaker 2: so many of you just have cover already without even
• 6:50
  Speaker 2: having to think about it. However, it might not be
• 6:53
  Speaker 2: the right fit for you and you might need to
• 6:55
  Speaker 2: change it. So inside Superannuation, you can hold income protection,
• 6:59
  Speaker 2: you can hold life insurance, and you can usually hold
• 7:02
  Speaker 2: some level of TPD, which is total and permanent disability.
• 7:07
  Speaker 2: G please remind me, but what date did we do
• 7:10
  Speaker 2: our personal insurances episode?
• 7:12
  Speaker 4: Oh, let me cast my mind back. I think it
• 7:14
  Speaker 4: was the eighteen year twenty twenty.
• 7:16
  Speaker 2: Yeah, okay, smarty pants, but go listen to that episode
• 7:19
  Speaker 2: because it really breaks down each and every single type
• 7:22
  Speaker 2: of personal insurance and I think it's really important. But
• 7:25
  Speaker 2: essentially insurance inside super is generally not nearly enough cover.
• 7:29
  Speaker 2: It's usually a group policy, which means it is not
• 7:31
  Speaker 2: taking your personal circumstances into consideration and you're not being
• 7:35
  Speaker 2: put in the best possible position. However, it being inside
• 7:39
  Speaker 2: super isn't the issue. It's the default cover. Because you
• 7:42
  Speaker 2: might go down the road g talk to feel be like, hey,
• 7:45
  Speaker 2: Phil need insurance, and he goes, great, you need a
• 7:47
  Speaker 2: life insurance policy that's different, and you'll be like, thanks,
• 7:50
  Speaker 2: no problems. He'll say, do you want me to just
• 7:51
  Speaker 2: put in your super You're like, great, money win, no problems,
• 7:55
  Speaker 2: and you can sort that out. However, your default cover
• 7:59
  Speaker 2: that you might have with your industry superfund might not
• 8:02
  Speaker 2: be enough and it might not be comprehensive enough for
• 8:05
  Speaker 2: you to go all right, well, I'm comfortable with this.
• 8:08
  Speaker 2: The same is true for income protection. I spoke about
• 8:10
  Speaker 2: this on that personal insurance episode. But often income protection
• 8:15
  Speaker 2: policies that are held inside superannuation that are default have
• 8:19
  Speaker 2: a time cap. So that means that if you go
• 8:22
  Speaker 2: of e, I'm fine, I checked, I do have income protection,
• 8:26
  Speaker 2: you might actually only have an income protection policy that
• 8:29
  Speaker 2: will pay you for two years. It won't pay you
• 8:33
  Speaker 2: until the age of sixty five like a policy I have.
• 8:36
  Speaker 2: And the reason that's so important is George, if I
• 8:38
  Speaker 2: get injured at work and can never return to work again,
• 8:41
  Speaker 2: two years of cover is going to do nothing. I
• 8:43
  Speaker 2: need to be covered until retirement age so I can
• 8:46
  Speaker 2: still meet my financial goals and my life goals and
• 8:49
  Speaker 2: still have a life, Whereas if I had relied solely
• 8:52
  Speaker 2: on that two year policy that was inside my superfund,
• 8:55
  Speaker 2: after two years, I'd be scrambling to work out what
• 8:58
  Speaker 2: I was going to do if I was on a
• 9:00
  Speaker 2: able to return to work. So I think it's really
• 9:02
  Speaker 2: important to understand the semantics around that. The only insurance
• 9:06
  Speaker 2: you cannot hold inside superranuation is called trauma insurance, and
• 9:10
  Speaker 2: to me that's quite an important one. But again it's
• 9:13
  Speaker 2: kind of like the icing on the top. I would
• 9:15
  Speaker 2: really prioritize getting income protection because it baffles me here
• 9:19
  Speaker 2: in Australia that g you'll insury your iPhone, you'll insure
• 9:22
  Speaker 2: your car, you'll you know, we did a travel episode recently,
• 9:25
  Speaker 2: you'll go and insure the camera that you bought. That's
• 9:28
  Speaker 2: you know, a couple of grand and I totally get that,
• 9:30
  Speaker 2: but you don't look at yourself as an asset like
• 9:33
  Speaker 2: you and your body are able to go to work
• 9:35
  Speaker 2: every day, g and make money. That is your biggest resource.
• 9:40
  Speaker 2: That is your biggest asset. Why aren't we protecting that?
• 9:43
  Speaker 2: And that's what income protection does. So I won't go
• 9:46
  Speaker 2: on and on, but essentially, insurance inside superanuation can be
• 9:50
  Speaker 2: a little bit lackluster and not put you in the
• 9:52
  Speaker 2: best possible position. Holding an inside zuper is not a
• 9:55
  Speaker 2: bad idea. It can be a bit of a money
• 9:57
  Speaker 2: win when it comes to tax and what you pay.
• 10:00
  Speaker 2: But it's all about being proactive and having a look
• 10:03
  Speaker 2: at it and going is this serving my needs and
• 10:05
  Speaker 2: what I actually need to get out of an insurance policy?
• 10:08
  Speaker 2: And if you haven't reviewed it, I guess now is
• 10:10
  Speaker 2: the time to do that, my friends? All right?
• 10:12
  Speaker 4: Next one under this super umbrella V. It comes from Ariana.
• 10:18
  Speaker 4: I ditched insurance from my super in my early twenties.
• 10:21
  Speaker 4: Now I'm thirty five and I'm wondering.
• 10:23
  Speaker 2: Where to start. This is a really common one for
• 10:25
  Speaker 2: our community. I would start by having a look at
• 10:28
  Speaker 2: your super fund. I've said it before. Call your super fund,
• 10:31
  Speaker 2: have a chat to them about what they offer, so
• 10:33
  Speaker 2: you know what that looks like. But in all honesty,
• 10:36
  Speaker 2: if you're thirty five and do not have any insurance,
• 10:38
  Speaker 2: i'd go talk to a financial advisor, absolutely straight out
• 10:42
  Speaker 2: of the gate, go and organize your insurances. It will
• 10:44
  Speaker 2: be one of the most important things you do for
• 10:46
  Speaker 2: your financial future.
• 10:48
  Speaker 4: All right, let's move on now. V two Income insurances,
• 10:52
  Speaker 4: which I know you just encover. Protection extremely important.
• 10:56
  Speaker 2: I will talk about this all day if you guys
• 10:58
  Speaker 2: will listenab grab a drink. This is not Friday drinks,
• 11:02
  Speaker 2: but this is what I talk about with my friends
• 11:05
  Speaker 2: at Friday drinks in real life. Gee, exactly right. No, really,
• 11:09
  Speaker 2: it's a bit sad. Okay.
• 11:10
  Speaker 4: The first question here comes from Beck as a sole trader.
• 11:14
  Speaker 4: What options do you have for income protection?
• 11:16
  Speaker 2: You have a lot of options. The important thing here
• 11:19
  Speaker 2: is proving your financials in the same way that you
• 11:22
  Speaker 2: would have to apply for a mortgage. So sole traders
• 11:24
  Speaker 2: obviously get the raw end of the deal when it
• 11:27
  Speaker 2: comes to getting approoved for anything. Let's be honest, however,
• 11:31
  Speaker 2: it's about having clean bookkeeping and clean financials and going
• 11:34
  Speaker 2: to an insurance provider and saying, hey, cool, I want
• 11:37
  Speaker 2: to apply for income protection. I'm a consultant, I am
• 11:39
  Speaker 2: an engineer, I do whatever I do, and then going
• 11:42
  Speaker 2: this is my income and this is how I've proven it.
• 11:45
  Speaker 2: So usually you can't go straight out on your own
• 11:47
  Speaker 2: and go, oh my gosh, I'm out on my own
• 11:49
  Speaker 2: and I've organized my insurance. It's very unlikely that they'll
• 11:52
  Speaker 2: accept that because they'll honestly, they'll just see you as
• 11:55
  Speaker 2: unemployed at that point. However, if you've got a couple
• 11:58
  Speaker 2: of years of tax returns and you've proven you our
• 12:00
  Speaker 2: ability to generate income, they're very likely to consider it. Obviously,
• 12:04
  Speaker 2: you need to make sure that you're not a sole
• 12:06
  Speaker 2: trader in an industry that doesn't have a good time
• 12:09
  Speaker 2: when it comes to income protection. However, I would again
• 12:12
  Speaker 2: be talking specifically to a financial advisor and working out
• 12:15
  Speaker 2: what actual insurances you need as a small business owner,
• 12:18
  Speaker 2: because if you're a soule trader, you're a small business
• 12:20
  Speaker 2: owner basically, and working out what other insurances you need
• 12:24
  Speaker 2: because you might need like public indemnity insurance or any
• 12:27
  Speaker 2: other types of insurance that are necessary for your industry.
• 12:30
  Speaker 2: So it really would be important to talk to a
• 12:32
  Speaker 2: financial advisor or an insurance broker.
• 12:34
  Speaker 4: Nice, all right, let's move on to Katie now, Kai Katie,
• 12:38
  Speaker 4: I'm nervous about income protection due to pre existing conditions.
• 12:43
  Speaker 4: Do you have any tips? So I'm sarving that means
• 12:45
  Speaker 4: health conditions, right.
• 12:47
  Speaker 2: Yeah, So a pre existing condition is something that will
• 12:49
  Speaker 2: either limit your ability to get income protection to its
• 12:53
  Speaker 2: full capacity or it will stop you from getting it completely.
• 12:57
  Speaker 2: So in our industry, g this is cooked. And a
• 13:00
  Speaker 2: few people that are very close to us have recently
• 13:03
  Speaker 2: gone through this, and it makes my blood boil. Drink COVID.
• 13:06
  Speaker 2: We had a pretty pretty hard time right rough time.
• 13:09
  Speaker 2: Rough time, really isolated. People were going online and getting
• 13:13
  Speaker 2: telehealth appointments and organizing psychologists to talk through that because
• 13:18
  Speaker 2: arguably we went through a traumatic event together, right. It
• 13:21
  Speaker 2: was not easy. However, recently, I've had a few people
• 13:24
  Speaker 2: put in insurance applications for income protection and it has
• 13:28
  Speaker 2: come back from the insurer and they've said, look, because
• 13:31
  Speaker 2: they saw a psychologist and had quote mental health issues,
• 13:34
  Speaker 2: we're not able to give them cover for mental health.
• 13:37
  Speaker 2: So they give you what's called an exclusion, which is
• 13:40
  Speaker 2: where they exclude a part of you from being insured.
• 13:45
  Speaker 2: So they will say, look, gee, I'm not going to
• 13:47
  Speaker 2: ensure your mental health, but I will ensure everything else.
• 13:50
  Speaker 2: So if you stop work because you broke your leg
• 13:52
  Speaker 2: and you no longer can come into the studio, we'll
• 13:54
  Speaker 2: cover that. However, if you have to take time off
• 13:57
  Speaker 2: and you're not able to work due to your mental
• 13:59
  Speaker 2: health health, we won't be covering that, and you go, well,
• 14:03
  Speaker 2: that's a bit unfair. Exclusions do suck. They are very common.
• 14:08
  Speaker 2: The insurance industry is getting so strict. Honestly, they are
• 14:13
  Speaker 2: so behind from my perspective, in understanding mental health and
• 14:16
  Speaker 2: understanding medication and what people go through. I mean, they're trying.
• 14:21
  Speaker 2: It is a very dated industry in a way, but
• 14:23
  Speaker 2: a lot of people are trying a lot of things. However,
• 14:27
  Speaker 2: I think it's really important to understand that the earlier
• 14:30
  Speaker 2: you get insurance, the less likely you are to have
• 14:34
  Speaker 2: an exclusion on your policy. So the older you get,
• 14:37
  Speaker 2: the more likely you are to break things or have
• 14:39
  Speaker 2: a bad back, or you know, twist your ankle at
• 14:41
  Speaker 2: netball like I've done before. And I'm in the very
• 14:44
  Speaker 2: grateful position where I got my income protection when I
• 14:47
  Speaker 2: was quite young, So it was when I was first
• 14:50
  Speaker 2: in the industry, like maybe twenty two year old. Victoria
• 14:52
  Speaker 2: was like rearing to go. She got her income protection
• 14:55
  Speaker 2: and had absolutely no exclusions. However, I'm telling you right now,
• 14:59
  Speaker 2: if I to apply for income protection, that would exclude
• 15:02
  Speaker 2: my back because I sit at a desk all day
• 15:05
  Speaker 2: and I go to a physio relatively often for massages
• 15:07
  Speaker 2: and making sure that I stop getting these random headaches
• 15:10
  Speaker 2: that I get. I also have a mental health care
• 15:12
  Speaker 2: plan and I see a psychologist more regularly. I'm not
• 15:15
  Speaker 2: saying I didn't need it. At twenty two, I was
• 15:17
  Speaker 2: just a lot poorer and couldn't afford my mental health
• 15:19
  Speaker 2: care plan, so I wasn't doing it. But now I'm
• 15:22
  Speaker 2: in my thirties, I see a psychologist regularly. But because
• 15:26
  Speaker 2: I see a psychologist regularly, and the reason I see
• 15:28
  Speaker 2: a psychologist is, you know, noted down as depression and anxiety,
• 15:32
  Speaker 2: I know for sure that I wouldn't have got income
• 15:34
  Speaker 2: protection on that, which is really disappointing but so important
• 15:38
  Speaker 2: to talk about because it's a really disappointing thing to
• 15:41
  Speaker 2: happen when you've been working with a financial advisor and
• 15:43
  Speaker 2: they come back and be like, hey, gee, so we
• 15:45
  Speaker 2: reviewed your circumstances and your application, and they spoke to
• 15:48
  Speaker 2: your doctor, and they're not willing to cover your ankle
• 15:50
  Speaker 2: or you need or your back or this certain part
• 15:53
  Speaker 2: of your back, or your mental health, and I just
• 15:55
  Speaker 2: think it's it's a bit sucky. But essentially, if you're
• 15:58
  Speaker 2: worried about income protect for pre existing conditions, the best
• 16:02
  Speaker 2: thing you can do is actually talk to a financial
• 16:04
  Speaker 2: advisor about it. See what insurers are the best options
• 16:08
  Speaker 2: for you, because different insurers have different policies. So I
• 16:12
  Speaker 2: know that if I'm talking to a client and they
• 16:14
  Speaker 2: have a higher BMI, I know that there are a
• 16:16
  Speaker 2: few insurers I'll go down the road to instead of
• 16:19
  Speaker 2: others because I know the breadth of what they will
• 16:21
  Speaker 2: and won't accept just from experience, and a financial advisor
• 16:25
  Speaker 2: is going to guide you through that. And then if
• 16:27
  Speaker 2: you do have an exclusion, one of the most important
• 16:30
  Speaker 2: things I would ask my financial advisor is, Hey, Georgia,
• 16:34
  Speaker 2: I see I've got an exclusion. Is it ever going
• 16:36
  Speaker 2: to be reviewed? Is this blanket? Like, is this something
• 16:39
  Speaker 2: that's going to exist for the entire policy or at
• 16:42
  Speaker 2: what point in time are they willing to review it?
• 16:44
  Speaker 2: Because often I ask that question, like every single time
• 16:48
  Speaker 2: I've gotten an exclusion, and sometimes the underwriter will come
• 16:51
  Speaker 2: back and be like, oh, well, actually, we can review
• 16:54
  Speaker 2: that in two years if she has a clean medical record.
• 16:57
  Speaker 2: So then in two years you'll come back and be like,
• 16:59
  Speaker 2: haven't had any issues with my ankle, haven't had to
• 17:02
  Speaker 2: do anything. Can you guys please remove it? And they
• 17:04
  Speaker 2: very likely will. So I think it's about just knowing
• 17:07
  Speaker 2: what you can and can't do. But the biggest thing
• 17:10
  Speaker 2: I would say there is it is not a bad
• 17:12
  Speaker 2: thing to have exclusions because you're still getting access to
• 17:15
  Speaker 2: the rest of that income protection policy. So you're covered
• 17:18
  Speaker 2: for cancer and you're covered for everything else that might
• 17:21
  Speaker 2: potentially go wrong. And I think sometimes people throw their
• 17:25
  Speaker 2: hands in there and go, well if I'm not covered
• 17:26
  Speaker 2: for mental health, like, what's the point, Like, because mental
• 17:29
  Speaker 2: health is not the only reason. Yeah, my how to
• 17:31
  Speaker 2: stop works. Yeah, there's a lot of other things that
• 17:33
  Speaker 2: are included.
• 17:34
  Speaker 4: This could be a silly question, but say God forbid,
• 17:37
  Speaker 4: tomorrow I get diagnosed with cancer. I can't then apply
• 17:41
  Speaker 4: for coming yet.
• 17:42
  Speaker 2: That would be a pre existing condition, and they would say, George, I, like,
• 17:45
  Speaker 2: you already had this, We're not covering you, and so
• 17:48
  Speaker 2: that's why just get it while you're healthy. So many
• 17:52
  Speaker 2: times we say, oh my gosh, I don't need it,
• 17:54
  Speaker 2: Like I'm not going to waste my money on that
• 17:55
  Speaker 2: because I'm healthy and young. Like things happen to people
• 17:58
  Speaker 2: every single day, and unfortunately in my industry because of
• 18:02
  Speaker 2: what I see and what my actual job is, like
• 18:05
  Speaker 2: I'm a part of that claims process, Like I have
• 18:07
  Speaker 2: seen people in their late twenties be absolutely wiped out
• 18:12
  Speaker 2: financially and their working capacity from things they never foresaw coming.
• 18:16
  Speaker 2: Like I had a client, and you know, he's a
• 18:18
  Speaker 2: really good client of mine, one of the fittest guys
• 18:21
  Speaker 2: you will ever meet, late twenties, was riding his bike
• 18:24
  Speaker 2: through the Melbourne CBD got hit by a bus. He's
• 18:27
  Speaker 2: okay now. That broke his pelvis, both his legs, a
• 18:30
  Speaker 2: whole heap of ribs, and was not able to work
• 18:33
  Speaker 2: for a good eight months because you couldn't. Income protection
• 18:37
  Speaker 2: saved him because he had a mortgage and two young kids,
• 18:40
  Speaker 2: and that's the thing that enabled him to one take
• 18:43
  Speaker 2: sickly from work but also be able to provide for
• 18:46
  Speaker 2: his family. So for me, it is really important. It
• 18:49
  Speaker 2: doesn't matter how healthy you are, because bad things happen
• 18:52
  Speaker 2: to good people, all right.
• 18:54
  Speaker 4: Last one here before we had to a little break
• 18:56
  Speaker 4: it comes from Nicole. How do I choose a provider
• 18:59
  Speaker 4: for income protection insurance? It's overwhelming?
• 19:02
  Speaker 2: I feel like this is I sound like a broken
• 19:04
  Speaker 2: record age. Go see a financial advisor. I have a
• 19:06
  Speaker 2: chat to Phil Thompson from sky Wealth. I am obviously
• 19:09
  Speaker 2: a big fan of him. But that's because I trust
• 19:10
  Speaker 2: his advice and I trust that that she's on the
• 19:13
  Speaker 2: money community know that, like I'm not making money from
• 19:15
  Speaker 2: pheel Like there's no referral arrangement or anything like that.
• 19:18
  Speaker 2: I just think it's so important to put you guys
• 19:20
  Speaker 2: in the best possible position. And how good is it?
• 19:23
  Speaker 2: G Like she's on the money has meant that my
• 19:25
  Speaker 2: business can't take on any more clients at this point,
• 19:28
  Speaker 2: So why wouldn't I promote the best financial advisors that
• 19:31
  Speaker 2: I know? So it makes sense, but I would talk
• 19:33
  Speaker 2: to a financial advisor. But I also believe this is
• 19:36
  Speaker 2: so lame. But I believe that an income protection policy
• 19:40
  Speaker 2: kind of chooses you because it's like a funnel. Right,
• 19:42
  Speaker 2: we set out to understand what we need. We go,
• 19:45
  Speaker 2: all right, well, what do we actually need? We might
• 19:47
  Speaker 2: need a certain amount of cover that might push a
• 19:49
  Speaker 2: lot of policies off the table because there are you know,
• 19:52
  Speaker 2: a limited number that off of the amount that you need,
• 19:55
  Speaker 2: it might be pre existing conditions. So you need to
• 19:57
  Speaker 2: work with an insurer that actually will accept that or
• 20:00
  Speaker 2: give you terms that make sense to you and your
• 20:02
  Speaker 2: personal circumstances. In our insurance industry, BMI is a really
• 20:06
  Speaker 2: big thing. I hate talking about this because I think
• 20:08
  Speaker 2: it's ridiculous. BMI I don't believe is a good indicator
• 20:12
  Speaker 2: of health. However the insurance industry does. And if you've
• 20:15
  Speaker 2: got a higher BMI or even a lower BMI, there
• 20:18
  Speaker 2: are particular insurance companies that I would use over and
• 20:22
  Speaker 2: above that. But you need to take your personal circumstances
• 20:25
  Speaker 2: into consideration before you actually look at a company. You
• 20:28
  Speaker 2: can't just head to a company's website and be like, oh,
• 20:30
  Speaker 2: these guys look good. I'll look at their pds and
• 20:32
  Speaker 2: make sure they're fine. Because some policies have really good
• 20:36
  Speaker 2: guynecological care. Others don't have that at all. There are
• 20:39
  Speaker 2: other insurance policies g that only cover one type of
• 20:43
  Speaker 2: breast cancer and not the other. So if you have
• 20:46
  Speaker 2: the Bracker gene, which is the gene that is hereditary
• 20:48
  Speaker 2: in your system, that means if you carry that they
• 20:51
  Speaker 2: might say absolutely not, We're not going to ensure you
• 20:53
  Speaker 2: at all for breast cancer. However, there are other policies
• 20:56
  Speaker 2: that might consider that. So I think it's not necessary
• 21:00
  Speaker 2: about which insurance policy should I pick, but more one
• 21:02
  Speaker 2: of my personal circumstances that genuinely need to be taken
• 21:05
  Speaker 2: into consideration here, because for me, I'm in my thirties.
• 21:10
  Speaker 2: I've spoken about this honestly and openly. At some point,
• 21:12
  Speaker 2: I would love to have kids. I want my reproductive
• 21:15
  Speaker 2: system to be insured. I want to make sure that
• 21:17
  Speaker 2: I'm okay in those circumstances. No, it doesn't pay for
• 21:20
  Speaker 2: IVF and stuff like that, because I know that question
• 21:22
  Speaker 2: is coming. However, what if something goes dramatically wrong during childbirth?
• 21:26
  Speaker 2: Am I covered for that? Or am I not? Because
• 21:29
  Speaker 2: there are some policies that don't cover for that because technically,
• 21:32
  Speaker 2: if you're giving birth, you're on maternity leave, and if
• 21:35
  Speaker 2: you're not at work you're not covered.
• 21:37
  Speaker 4: Oh what the devil.
• 21:38
  Speaker 2: So from my perspective, the best possible thing you can
• 21:41
  Speaker 2: do when sorting out your insurances is actually get some
• 21:43
  Speaker 2: advice and put yourself in the best possible position.
• 21:46
  Speaker 4: Perfect great advice before the break on the other side,
• 21:50
  Speaker 4: we'll be chatting health insurance. We'll be chatting about general
• 21:52
  Speaker 4: insurance questions. We'll were talking about life insurance. We're gonna
• 21:55
  Speaker 4: do it all sexy, stick around, straight back into it,
• 22:03
  Speaker 4: Victoria Divine. We're going to start with some general insurance questions,
• 22:06
  Speaker 4: which I'm quite excited about. The first one that comes
• 22:10
  Speaker 4: from Hannah in your opinion be do you think people
• 22:13
  Speaker 4: are over insured?
• 22:15
  Speaker 2: No such thing as being overinsured or over educated? Is
• 22:19
  Speaker 2: that the from Oscar wild or did I just make that?
• 22:22
  Speaker 2: I mean I've not heard it. Actually, Georgia King, I
• 22:24
  Speaker 2: think we're wildly underinsured. And I don't think we are.
• 22:27
  Speaker 2: I know we are because Australia is the most underinsured
• 22:30
  Speaker 2: country in the entire world, or the first world country
• 22:34
  Speaker 2: in the entire world, and that is not a good thing.
• 22:37
  Speaker 2: But I mean it's a trusting thing, right. We discussed
• 22:39
  Speaker 2: this in our Travel Insurance podcast, which was a really
• 22:42
  Speaker 2: good one, where I explained that all of us as
• 22:44
  Speaker 2: Australians are just so trusting that we just don't see
• 22:47
  Speaker 2: it as a priority. We're like, oh, nohing's gonna happen,
• 22:49
  Speaker 2: It's fine, or I'll just move back in with mum
• 22:51
  Speaker 2: and dad if something happens or huh, I'll just go
• 22:54
  Speaker 2: into Centlink. And I mean, do you know what, there
• 22:56
  Speaker 2: are some circumstances where you might do the pros and cons,
• 23:00
  Speaker 2: and with your income, it might actually be less than
• 23:03
  Speaker 2: what Centerlink is. So if you can't work, a disability
• 23:05
  Speaker 2: pension might actually be your best port of call. But
• 23:09
  Speaker 2: that's a circumstance. You actually need to do the maths
• 23:12
  Speaker 2: on and work out whether that works for you or not.
• 23:14
  Speaker 2: But no, I don't think people are overinsured. I think
• 23:16
  Speaker 2: they're underinsured. However, I think that we prioritize the wrong
• 23:21
  Speaker 2: types of insurance. Yeah, we so likely to take out
• 23:24
  Speaker 2: additional iPhone insurance or like, I went and bought new
• 23:27
  Speaker 2: headphones the other day, and I really wanted some air
• 23:29
  Speaker 2: pods because I've been using like fake air pods until now,
• 23:32
  Speaker 2: which are terrible. The quality is insane, Like, oh my gosh,
• 23:36
  Speaker 2: it's insane that twelve dollars eBay headphones are not nearly
• 23:39
  Speaker 2: as good as the two hundred and fifty dollars AirPods
• 23:41
  Speaker 2: that I purchased. But I splurged, right, and a checkout,
• 23:45
  Speaker 2: they're like, would you like to extend Apple? Care insurance
• 23:47
  Speaker 2: for another two years for like this amount of money,
• 23:49
  Speaker 2: and I was like, no, I would prefer to spend
• 23:52
  Speaker 2: I think it was like sixty nine dollars or something,
• 23:55
  Speaker 2: whereas I'd prefer to spend that on a trauma policy
• 23:58
  Speaker 2: or on something that protects It's me. I don't need
• 24:01
  Speaker 2: to protect my headphones. And I totally get if other
• 24:03
  Speaker 2: people see the value in that, and like you do
• 24:05
  Speaker 2: you However, I just think that we prioritize the wrong things,
• 24:09
  Speaker 2: Like it doesn't make sense to me that someone will
• 24:11
  Speaker 2: go and insure their air pods and not insure their person.
• 24:14
  Speaker 4: Well that's where it gets confusing, though, isn't it, Because
• 24:17
  Speaker 4: there are gimmicky insurances out there that make it really
• 24:20
  Speaker 4: confusing because.
• 24:21
  Speaker 2: You're like, will ensure anything you can, and you.
• 24:23
  Speaker 4: Can, and you can kind of conflate that and think
• 24:26
  Speaker 4: that it's equal to income insurance when it's when it's
• 24:29
  Speaker 4: a little different and you don't need it, which leads
• 24:31
  Speaker 4: me v to our next question, which comes from Jess.
• 24:35
  Speaker 4: How do you know if you're being overcharged or paying
• 24:37
  Speaker 4: for things you don't need just in general when it
• 24:40
  Speaker 4: comes to insurance.
• 24:41
  Speaker 2: When it comes to insurance, So that's where you want
• 24:44
  Speaker 2: to understand exactly what you're getting to be blunt. Insurance
• 24:48
  Speaker 2: can be really expensive, and it's a bit like health insurance, right.
• 24:51
  Speaker 2: The more you pay, the more you get or the
• 24:53
  Speaker 2: more access you have to different things and opportunities. I
• 24:57
  Speaker 2: think it's just about being educated and understanding exactly what
• 25:01
  Speaker 2: your policy is and what it's made up of, and
• 25:03
  Speaker 2: understanding what the market's doing, and talking to your advisor
• 25:06
  Speaker 2: and saying should I do this or shouldn't I do this? However,
• 25:09
  Speaker 2: you know, if you're in a position, gee, where you've
• 25:10
  Speaker 2: had hysterectomy for some reason, I wouldn't want to be
• 25:13
  Speaker 2: paying for reproductive health if I had gone through that.
• 25:16
  Speaker 2: I think it's just important to have a look at
• 25:17
  Speaker 2: something and understand what benefits you and what doesn't. Because
• 25:21
  Speaker 2: hysterically g I have seen people come into our office
• 25:24
  Speaker 2: sit down and I'm like, oh my gosh, what have
• 25:25
  Speaker 2: you got? And they've got like these epic policies. This
• 25:28
  Speaker 2: was a fair few years ago, and it wasn't my client.
• 25:31
  Speaker 2: It was a financial advisor in my officer's client, and
• 25:34
  Speaker 2: he reviewed these client's insurances and he had maternity cover
• 25:39
  Speaker 2: and like full like childbirth cover and all of this
• 25:42
  Speaker 2: other stuff, and we were like, buts mail, Like this
• 25:45
  Speaker 2: makes no sense, and like, obviously I'm not being insensitive here.
• 25:50
  Speaker 2: We knew for sure that this client was mail. It
• 25:52
  Speaker 2: wasn't a question of like, oh my gosh, is there
• 25:54
  Speaker 2: something that you know we're not privy to, because you're
• 25:56
  Speaker 2: very sensitive to those things. However, we're like, no, this
• 25:59
  Speaker 2: bloke does not need this, and called the insurance company.
• 26:02
  Speaker 2: They're like, oh, yeah, it was default, Like, we can
• 26:05
  Speaker 2: remove it. You're right, it would reduce his premiums and
• 26:07
  Speaker 2: we're like, yeah, do that, but also please refund us
• 26:11
  Speaker 2: for the entire time he has had that, because he
• 26:13
  Speaker 2: shouldn't have been paying for that, and you guys know that.
• 26:17
  Speaker 2: So it was kind of funny at the time, but
• 26:19
  Speaker 2: also really cheeky. So I think it's just about understanding
• 26:22
  Speaker 2: what you're getting, having a chat to your advisor, and
• 26:25
  Speaker 2: then like, what's the harm in giving your insurance company
• 26:28
  Speaker 2: a call and saying, hey, guys, just got my premium
• 26:31
  Speaker 2: statement in the mail. Any chance you can do a
• 26:33
  Speaker 2: better deal than that? Otherwise I might look elsewhere and
• 26:35
  Speaker 2: they might say yes or no or explain to you
• 26:37
  Speaker 2: why your premium is such. But I think it's important
• 26:40
  Speaker 2: to always ask questions, but always be educated as well.
• 26:44
  Speaker 2: But also on that g be really careful about changing
• 26:48
  Speaker 2: your insurance company, because, for example, I could today go
• 26:53
  Speaker 2: and get rid of my income protection policy and go
• 26:56
  Speaker 2: get a cheaper one. It's a no brainer when it
• 26:59
  Speaker 2: comes to the semantics of like what's cheaper. Right, However,
• 27:03
  Speaker 2: I have an insurance policy that has no exclusions, has
• 27:07
  Speaker 2: a whole heap of benefits for me personally. You know,
• 27:10
  Speaker 2: it was written a long time ago, so I'm actually
• 27:13
  Speaker 2: completely covered. If I went and got a new insurance
• 27:16
  Speaker 2: policy today, there would be exclusions, there would be a
• 27:19
  Speaker 2: whole heap of things that, to be honest, is not
• 27:21
  Speaker 2: worth changing. Like I'm not going to go get a
• 27:23
  Speaker 2: cheaper policy because with insurance, it's actually about the quality
• 27:27
  Speaker 2: of the insurance, not necessarily getting the cheapest cover, because
• 27:30
  Speaker 2: that's not going to put you in the best possible position.
• 27:32
  Speaker 2: So would I go out and get the cheaper policy.
• 27:35
  Speaker 1: No.
• 27:35
  Speaker 2: Would I try and negotiate a better rate on my
• 27:38
  Speaker 2: existing policy. Absolutely. So I'm in that tricky position where
• 27:41
  Speaker 2: I don't want to change mine because I do have
• 27:43
  Speaker 2: a financial advisor written policy that is in my best interests. However,
• 27:47
  Speaker 2: that's where you want to have those conversations around is
• 27:50
  Speaker 2: this what's best for me? Because we all know that, mate,
• 27:52
  Speaker 2: that's like, oh, I don't need insurance. I just canceled it,
• 27:55
  Speaker 2: like I don't need it in my souper and you're like,
• 27:56
  Speaker 2: oh my gosh, like that was such a valuable thing
• 27:58
  Speaker 2: to have. And even and if you don't want insurance
• 28:02
  Speaker 2: inside super like another recommendation. If you want to save
• 28:05
  Speaker 2: some money and you're just not sure about the super,
• 28:07
  Speaker 2: lower the amount instead of being covered for half a
• 28:10
  Speaker 2: million dollars, the call up and see what's the lost amount.
• 28:12
  Speaker 2: I can be insured to keep that policy so that
• 28:14
  Speaker 2: I save some money. But also I'm not putting future
• 28:17
  Speaker 2: me in a worse off position. So I think it's
• 28:19
  Speaker 2: just important to know that you can dial things down
• 28:22
  Speaker 2: and then later you can dial them back up, but
• 28:23
  Speaker 2: if you cancel them completely, you could find yourself in
• 28:26
  Speaker 2: a sticky situation.
• 28:27
  Speaker 4: Brilliant V. I feel like I have so many more
• 28:30
  Speaker 4: questions to pepper your ways. So I'm making an executive decision.
• 28:34
  Speaker 4: Here are we gonna press pause?
• 28:36
  Speaker 2: I love, so we can all take.
• 28:38
  Speaker 4: In what we've learned today and then we're going to
• 28:39
  Speaker 4: do a part two to this episode, so.
• 28:41
  Speaker 2: I can that. Yeah, great idea, So let's let's do this.
• 28:46
  Speaker 2: And I feel like people could be like, this is
• 28:48
  Speaker 2: really dry, V, but like it's important for you to know, right,
• 28:52
  Speaker 2: all right, why don't you wrap the boring but important
• 28:54
  Speaker 2: stuff and you guys can get on with your day.
• 28:56
  Speaker 4: It would be a pleasure already. Guys, please remember that
• 28:59
  Speaker 4: the advice shared on She's on the Money is general
• 29:02
  Speaker 4: in nature and does not consider your individual circumstances. She's
• 29:06
  Speaker 4: on the Money exists purely for educational purposes and should
• 29:09
  Speaker 4: not be relied upon to make an investment or a
• 29:11
  Speaker 4: financial decision. And we promise Victoria Divine and She's on
• 29:14
  Speaker 4: the Money are authorized representatives of in Focused Securities Australia
• 29:18
  Speaker 4: Proprietary Limited ABN four seven zero nine seven seven nine
• 29:22
  Speaker 4: seven zero four nine AFOSL two three six five two three.
• 29:25
  Speaker 2: See You're on Friday, Guys, by Guys,