Frequently Asked Questions

Here are some frequently asked questions that will hopefully help answer any queries you may have about GI Advisers.

If you don’t see the answer to the question you have about one of GI Advisers financial services, please contact one of our highly experienced and highly qualified Brisbane-based Australian financial advisers. We will happily answer any concerns you may have and provide expert financial advice that you can trust.

The amount you will pay for your Insurance is dependent on several key things, namely:

  • Your Occupation
  • Your Age
  • Your Gender
  • Your Family History and Personal Medical History
  • Lifestyle Factors (smoking, BMI)
  • Benefit amount
  • Quality of cover selected

GI Advisers can help you find the best value policy possible from a vast selection of the best insurance providers in Australia. Contact us or complete a quote online.

Life Insurance – The appropriate amount of Insurance is different for every individual. The amount that you require will depend on you and your family’s particular needs and circumstances.

Scenario: John is 35 years old, earns $75,000 annual salary and is the sole provider for his wife and 2 young children. John has a $350,000 mortgage on his family home, and a $35,000 car loan. John has some standard Life insurance inside is superannuation fund for the sum of $250,000. However, on John’s 36th birthday this cover will decrease to $175,000.

In the event John unexpectedly passed away or became terminally ill, the aim of John’s life insurance should be to clear the family debt of $385,000 and ideally provide a replacement income stream sufficient to ensure his family does not suffer financially for future years to come. John would also need to consider the effects of inflation and increases in the cost of living, which can be difficult to predict accurately.

After discussions with his financial adviser, he has indicated that he would like to have $10,000 to cover funeral expenses, an income replacement for his family for 15 years x $75,000 pa= $1,125,000 which will maintain his family’s lifestyle and take care of his grownup children and their educational needs. John also wishes to clear their total debts of $385,000 which would protect the family home and give John peace of mind. The total sum required for John’s Life insurance is $1,520,000.

After looking at John’s personal needs, objectives and circumstances, John’s financial adviser has recommended John replace the existing standard Life insurance of $250,000 held with his superannuation fund provider as this cover is decreasing and does not cover his needs and take a new Life policy with a quality insurance product provider for the sum of $1,520,000.

Total and Permanent Disability (TPD) – The financial impacts of becoming disabled can be catastrophic for you and those you care about. You may be faced with significant ongoing medical costs, as well as ensuring sufficient income to support you and your family. As such, the amount of cover you need can be significant, making it even more important that you get the best possible advice.

Income Protection – The maximum amount you are able to claim is 75% of your annual income. For business owners, this equates to whatever your income is after business expenses, but before tax. The amount of Income protection you require will depend mostly on you and your family’s monthly expenses and/or cost of living.

Scenario: John earns a total salary of $75,000 including tax per annum. He wishes to gain the maximum monthly benefit amount allowable to him to cover his monthly living cost. Your financial adviser would use the following equation to calculate your maximum monthly benefit allowably $75,000 x 0.75 / 12= $4687.50.

John could apply for an Income protection policy with a monthly benefit of up to $4687.50.

Trauma Insurance – Generally speaking, the average cost of treating a Critical Illness in Australia is approximately $100,000 in medical expenses alone. You may need more or less coverage than this depending on your personal circumstances.

GI Advisers specialise in helping Australians determine an appropriate level of Insurance cover for their personal circumstances. For assistance in determining your appropriate levels of cover, please contact us or complete a quote online.

Most Australians with a superannuation fund may be able to utilise their superannuation funds to pay for their Life, TPD (any occupation) and Income Protection Insurance policy. Otherwise, Insurance can be paid out of pocket monthly or annually depending on the preferred payment methods defined by your insurance provider.

Own Occupation TPD and Trauma Insurance are unable to be paid by your superannuation fund and must be paid out of pocket. This can be on a monthly or annual basis depending on the preferred payment method defined by your insurance provider.

Stepped or Level premiums refer to the way your premiums are calculated each year it is applicable to all personal insurance products.

Stepped premiums are initially cheaper, however will increase each year – normally on your birthday, or on the policy anniversary date. Stepped premiums are beneficial to insurance policies intended to be held short term. The amount the policy initially increases often goes unnoticed by policy holders, however, once policy holders reach a certain age, the amount they pay for their insurance can rapidly increase. By the time you notice this drastic increase, it may be too late – leaving you with an insurance policy that is unsustainable and unaffordable – when you need it the most.

Level premiums allow you to lock-in your premium, sometimes right through to retirement age. Level premiums are beneficial for insurance policies intended to be held long-term. This type of premium initially will be more expensive than stepped premium but can often result in greater savings over the long term. Most importantly, level premiums can ensure that your insurance cover remains affordable and sustainable when you need cover the most.

The standard products that are automatically given within your superannuation funds have been arranged without taking into account your personal objectives, financial situation, needs or your qualification, training and occupation experience.

A majority of Australians will find that these standard policies leave them grossly under-insured. Many benefits cannot be obtained or offered by these types of insurances setup by your superfund and may not be appropriate for you and your family. Majority of these standard insurances are aged based diminishing covers. Which means the older you get the less sum of cover you will have to utilise. You must, therefore, assess whether it is appropriate, in the light of your own individual objectives, financial situation or needs, to maintain these standard covers.

Workers compensation insurance is a form of protection that compensates employees if they become injured at work or become sick as a result of tasks carried out at their work. This payment can be used to cover their wages while they are unfit to work and cover any medical expenses and rehabilitation.

However, even if you are entitled to WorkCover (also known as workers compensation cover) through your company, it is still worth considering Income Protection Insurance to provide an additional level of cover. Income protection will provide cover for injury and illness that occur both at the workplace AND outside of work.

Workers compensation only pays a benefit for injuries and accidents that occur at work. Statistics have shown that there is a greater number of accidents and injuries happening outside work 75% of accidents occur while a person is at home or doing recreational activities compared to 25% of work injuries being related. Furthermore, out of the 700,000 people who sustained work-related injuries, only 216,000 received workers compensation benefits.

This is where income protection comes in it covers the area where workers compensation cannot. Workers compensation has certain limitations as to what kind of impairment or illness it would cover. Income protection, on the other hand, gives you cover until you are fully recovered to go back to work or, in some cases, until you are 65 years old.

Under income protection, you have a choice of which type of cover you want and how you will be paid. The three types of income protection policy namely: agreed value, indemnity value, and guaranteed value, will determine how you are going to receive your income protection benefit.

In summary, Income Protection can offer a more comprehensive level of cover to individuals to that given by workers compensation. That said, the benefits provided by workers compensation may offer a sufficient level of cover to workers in certain situations, so it is essential to consider your needs and assess what is suitable for you.

  • 89 McLachlan Street, Fortitude Valley QLD
  • advice@giadvisers.com.au
  • 0732083785

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Friday: (9am – 5pm)

Saturday & Sunday: By Appointment

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