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Summer Starter Series: Protecting Yourself With Personal Insurance · She's On The Money

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