Pricing for personal insurance depends on range of factors. Our examples below show some of the variety that clients may choose. When we talk about ‘stacking your insurance’ when mean how you put the different products together to form your protection plan. You then priotritse these around your budget pizza
Single mum
[example]-
Single mum (aged 35) with one child. Earning $68,000pa. $50,000 debts.
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Concerned what happens to her daughter, if she cannot work for a long period.
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Life insurance to cover the debt. Mortgage Repayment Insurance $2500 to cover rent (based on 45% income) 8 weeks wait. Trauma 2 years.
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All prices are indicative and guides only. Each situation is different and needs to be fully assessed. Get in contact with us to so that we can stack your cover to meet your budget
Single guy
[example]-
Single guy aged 27. Earning $50,000pa. No debt.
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Concerned about ‘living insurance’. How does he pay his rent if something happens? What if he can never work again?
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Private health with $1,000 excess.
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Funeral cover. Income Protection $3,000 for 2 years, 4 weeks. Truama for 1 year.
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All prices are indicative and guides only. Each situation is different and needs to be fully assessed. Get in contact with us to so that we can stack your cover to meet your budget
Working couple
[example]-
Working couple (aged 45) with 2 kids. Household income $120,000. Mortgage $500,000
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Main concern is mortgage replacement and family health.
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Private health for family, $2,000 excess. Life, Mortgage Repayment Insurance $2,300, 13weeks 2 years.
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All prices are indicative and guides only. Each situation is different and needs to be fully assessed. Get in contact with us to so that we can stack your cover to meet your budget
How much insurance do I need?
This is very personal to you. It will depend on many factors.
Are you more focused on looking after your debt or replacing your income?
Is it just you or are you responsible for others?
Do other people depend on your income or your activities for the household?
There are some basic ‘rule of thumb’ guidelines, but these really need to taken in consideration with your own situation.
| Product Selection | Option One: Some Experts suggest | Option Two: Some Experts Suggest | Option Three: Cover the Debt | Option Four: “Living Insurance” I don’t have a family | Option Five: Bare minimum & I don’t have debt |
|---|---|---|---|---|---|
|
life insurance |
10-12 times income |
10-12 times income |
Mortgage & funeral costs |
Funeral costs |
Funeral costs |
|
Total Disability |
10-12 times income |
10-12 times income |
|
10-12 times income |
|
|
Income Protection |
75% of your gross |
75% of your gross |
Mortgage Repayment Insurance |
75% of your gross |
40% of your gross income |
|
Trauma |
|
|
1-2 years equivalent income |
1-2 years equivalent income |
1 year equivalent income |
|
Health & Medical |
|
Hopsital only with a high excess |
|
Hospital only with a high excess |
|
* Theses scenarios are examples only. You will need to stack your insurance according to the size of your budget pizza and the needs that you have. An experienced insurance adviser will help you with this.
EXAMPLE:
A 35-year old male. Yearly renewable Term (YRT) vs level to 65.
Sum insurred is $200,000
YRT price in the first year = $5/week. This price increase every year.
The price to level to age 65 = $9.60pw [the same price every year]
By year 14, the YRT cost is the same as Level premium.
In year 22 is the same cumulative premium has been spent.
Therefore everything after year 22 is a gain for the Level premium in terms of savings.
Savings using Level Premium
= $14,800
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My Happy Clients!
stack your insurance that meets your needs, budget & suits you and your family.
Create your insurance ‘stack‘ like a pyramid. Put your most important risk at the base, then stack the 2nd most important.
This process helps you to understand what your key concerns really are.
Then you look at your budget. The size of the ‘pizza‘ is the size of your budget. This is another way of looking at your priories versus how much you can afford.
A good registered financial adviser will use an independent framework to help you through this process.
