Aussie Finance Blog

Australian personal finance news, tips and advices.

Juggling your changing health needs on a budget

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The start of Autumn every year is a good reminder to make sure you’re on the right private health insurance plan. Why Autumn though?

On 1 April, premiums for health insurance rise by an average of 4.84%. So if you don’t take the time review your policy, not only could you be worse off financially but you could end up with the wrong level of cover – something that could cost you much more in the long run. ... (read more)

Do I have a Junk Policy?

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Compensation for this post was provided by Choosewell. 

The private health insurance industry has found itself in a bit of a pickle after customer advocacy group Choice recently ousted several major providers as proponents of ‘junk’ health insurance policies. Arguing that these policies represent a complete waste of money for consumers, Choice has demanded attention from the Federal Government. ... (read more)

What Does Home Contents Insurance Cover?

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Home contents insurance gives the home owner or renter peace of mind by covering the financial cost of replacing or repairing possessions. Almost everything you own can be covered by contents insurance, including furnishings, computers, white goods, electrical appliances, equipment, toys and even collections such as stamps or coins.

As we accumulate possessions it becomes imperative to protect our investment with insurance. Home contents insurance covers items belonging to every family member, and can even include items belonging to visiting friends as long as their name is also listed on the insurance policy. Items that are not covered include permanent building attachments. These will need to be part of a separate ‘home insurance’ policy. Many people combine home and contents insurance to cover both the house and possessions. ... (read more)

Life Insurance Explained Simply

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Life Insurance is one of the soundest financial investments you can make. If you leave dependants behind, your policy will ensure they are financially secure and able to meet ongoing expenses.

Everyone is ultimately vulnerable to health complications and accidents, so it’s hard to understand why anyone with available finances would remain uninsured. It’s true that nobody wants to contemplate death for themselves or their loved ones, and when things are going along nicely, life insurance is easily forgotten. However, there’s no denying that life insurance cover could prove invaluable in a time of need. ... (read more)

Home Insurance during the Settlement Period

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Many buyers are confused about their need for home insurance between the time the contract is signed and the final settlement prior to moving in. Here are some reasons for the confusion and the right steps to take regarding insurance.

Although there are variations in property law for different Australian states, the terms of contract usually transfer insurance risks from seller to buyer as soon as the contract is signed. The time between signing the contract and final settlement is most commonly between four to six weeks, with many people unsure of their need for insurance during this period. A legally binding contract also includes fine print, and every word should be fully understood before entering into what, for most people, is their greatest financial investment. ... (read more)

Income Protection Insurance in Super

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Income Protection Insurance is a policy that provides payments in place of your regular income in the event of an injury or illness, especially if you are away from work for an extended period of time. The amount of monthly benefit received is determined by your policy choice, and can be up to 75% of your usual income. Policy options are designed to suit individual requirements and are generally structured for benefit periods spanning 2 years, 5 years, or until age 65 or 70. ... (read more)

Health Insurance – Who Needs It?

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It’s something you hear about often, drifting in and out of conversations, and you probably know you should take an interest, but as usual you turn the other way and talk about something else. After all, who really needs health insurance? Maybe you think you don’t need it and everything is fine. Possibly you feel it’s an expense you would rather not make, but can you really afford to do without health insurance? ... (read more)

Health Insurance Considerations

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You may have realised you need health insurance. Here are some strategies to make sure you get the best deal.

  • Take the time to become familiar with the rules governing the health insurance plan you choose, and then follow those rules. The rules may be related to pre-authorisation or associated matters. If you ignore the rules related to your plan there is a chance that your coverage will not be forthcoming when you need it. Never make uneducated assumptions. Even if you are reluctant to expose your lack of understanding, speaking to your health insurance company representative could save you thousands of dollars.
  • You may not require every coverage feature of your chosen health insurance plan. For example, mental health services or maternity features are specific to particular segments of society. Some health insurance companies can offer a policy for basic cover that may be more specific to your needs. Although you will be covered for fewer eventualities, it will be a less expensive health plan.
  • Some health insurance plans contain spousal benefits. If you and your spouse are covered by health insurance, it’s worth checking the policies to determine your cover. If you are both covered by one of the policies, the other policy can be terminated, immediately cutting your health insurance premiums in half.
  • If you are familiar with your health insurance plan you will be better prepared in case of emergency. Certain hospitals and doctors may be included in your network, and by knowing who and where they are you will save time and money when the need arises. Keep this information where it can be readily retrieved.
  • By cutting down expenses on medicines or drugs you will be doing your health insurance costs a favour. Methods can be as simple as requesting free samples from your doctor or using generic drugs. There are many reduced cost medications available. Investigate if you are eligible for programs that are available, especially if you are a low income earner.
  • A simple method of becoming a desirable health insurance customer is to give up bad habits. For example, smokers pay higher premiums, and if you have given up for several years you will qualify for a better health insurance rate.
  • Getting fit and healthy is a good idea. Obese people pay a higher health insurance premium than smokers, alcoholics and the elderly. Healthy people have greater energy and vitality, less stress, and often more money for enjoying life’s healthy pleasures.

Health insurance should be seen as a privilege rather than a burden, especially in a country like Australia where health services are designed to provide the very best of care and attention. The money spent on getting healthy and keeping healthy, along with the security good health coverage can offer, will mean that you can enjoy life without wondering just where and when an unfortunate occurrence or accident will derail your lifestyle. ... (read more)

The Risk of Being Under-insured

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Construction costs have increased significantly since the carbon tax was introduced, with additional expenses filtering through the building sector from top to bottom. Soft economic conditions have also affected small construction companies, with many owners under-insuring their business against potential losses. A lot of businesses are under-insured, with few owners understanding the ramifications until they make a claim. ... (read more)

Business Insurance Tips

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For many people it’s a bold move to begin a small business and it takes self-motivation, a degree of confidence, and sometimes nerves of steel. Business owners have to understand the workings of their business from the bottom up, leaving no stone unturned in the search for profitability. Some areas of your business may not be getting the attention they deserve, and business insurance may be one such area. ... (read more)