If you are considering Life Insurance, you no doubt have some questions, so we have compiled a list of the commonly most asked questions for you.
How do I apply for the personal insurance?
It’s quick and easy to apply. Simply call Red Dog Financial Services at 07 5578 7257 to arrange an appointment.
What are the main types of cover under personal insurance?
We offer four types of personal insurance:
Life Insurance – pays a lump sum in the event you die or are diagnosed with a terminal illness.
Trauma Insurance – pays a lump sum in the event that you suffer one of a number of medically diagnosed illnesses or diseases which include cancer, heart attack and stroke.
Total & Permanent Disability – pays a lump sum if you are permanently unable to work due to sickness or injury.
Income Protection – pays 75% of your monthly income in the event that you are unable to work due to injury or illness for an agreed period of time.
How much insurance do I need?
How much Life, TPD, Trauma and Income Protection you need, varies according to everyone’s individual circumstances. In general, you should consider:
- Any other Life, TPD, Trauma and Income Protection cover that you may have, including Life and TPD insurance provided through your superannuation fund (if any);
- What you can afford;
- Whether or not you have dependants (e.g. spouse, partner and/or children) who are reliant on your income; and
- Whether or not you have a mortgage, or any other debts for which you are responsible such as credit cards and other loans.
If you are unsure about the level of cover you require, we suggest you speak to us before deciding to purchase.
I already have life insurance through my superannuation fund. Do I need additional life insurance?
In many cases, cover through a superannuation fund is very small. You should check the adequacy of this cover, as it might be less than you expect.
When determining whether or not the cover provided by your superannuation fund is sufficient, you need to take into account the total benefit paid by your superannuation fund. This total may be made up of your account balance and an insured benefit or may be limited to the insured benefit only. You should also check whether or not your insurance could be continued if you were to change employers in the future. If you are unsure of the level of cover provided through your superannuation fund, you may wish to speak to the fund provider, or call us.
I am self-employed. Why do I need life insurance?
Self-employed people face similar needs in many instances to employed people – with a few additional challenges. Self-employed people may have business partners, personal guarantees on business loans as well as the standard mortgage and dependants to consider. In addition, many self-employed people will find that their superannuation fund may not provide insurance.
If you are self-employed, and using insurance for business purposes you may also find that premiums can in some circumstances be tax-deductible. We recommend you seek advice on how life insurance can fit into your personal financial plan by calling us.
Can I apply on behalf of another person?
No, applications cannot be made on behalf of another person.
Benefits will not be paid in any circumstances where the Life Insured has not applied for the cover personally.
Is there a surrender value associated with insurance?
No, personal insurance is not an investment product and is only designed to pay a lump sum benefit in the event of death, terminal illness, inability to work ever again, sickness or injury. If you cancel a personal insurance policy at any time you will not get any money back.
What type of questions are asked during the application process?
We will ask you questions about your health, lifestyle, occupation, personal and family medical history to determine whether or not you are eligible for insurance. We will not disclose your sensitive information such as details about your health for any purpose other than to underwrite your insurance or assess a claim.
Should I disclose all my medical history?
It is absolutely critical that you disclose everything in relation to your medical history. Non-disclosure of vital information could result in insurance policies being terminated by the insurer. Disclose everything.
Do I need a medical check up or blood test?
Medical checks and blood tests are based on the amount of insurance you apply for and your medical history. Generally speaking, high amounts of insurance applied for could result in the insurer wanting a medical check and blood tests. If you have a history of medical issues, this could also result in the insurer requesting medical checks and blood tests.
I quit smoking six months ago. Do I need to disclose this to you?
Yes. If you have smoked tobacco or any other substance in the last 12 months, then you do need to disclose this.
How do you calculate insurance premiums?
Premiums are determined by the following factors:
- Your age
- Your gender
- Whether or not you smoke
- The type of insurance you select
- Your state of health
- Your income; and
Premiums are initially calculated for one year.
How do I pay for the policy?
Premiums are payable monthly or annually by Direct Debit from a credit card or a bank account.
Can I increase my level of cover?
Once your Policy is current, you can apply to increase your cover or to add additional benefits at any time.
How do I make a claim?
To make a claim, you simply call Red Dog Financial Services on 07 5578 7257. We make the claims process as easy as possible. If you, or your estate, need to make a claim, please call us as soon as possible after an insured event has occurred. We will help you or your estate through the whole process.
Can my Self Managed Super Fund own a Life Insurance policy?
Yes, a Trustee can be the owner of the policy.
Yoannidis Corporation Pty Ltd t/a Red Dog Financial Services and Steven Yoannidis are authorised representatives of Synchron, AFS Licence No 243313
The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your needs, circumstances and objectives.