 "Insurance through super")
MoneySmart
(ASIC)
Super cover
Most super funds offer life insurance for their members. If you're reviewing your life insurance, check what cover you have through your super fund so you can compare it with other options.
Here we explain what types of life insurance you can get through your super and the pros and cons of this type of insurance.
What types of life insurance are offered by super funds?
Super funds typically have three types of insurance for members:
Your employer's default super fund will generally provide you with death and TPD cover. This basic cover may be available without health checks. You can usually increase, decrease, or cancel your default insurance cover.
Your super fund's website will have a product disclosure statement (PDS) which explains the insurer they use and details of the cover available.
Like other insurance policies, you will pay insurance premiums. If your insurance is through your super fund, the premiums are deducted from your super account balance.
Cancellation of insurance on inactive and low balance accounts
Super funds will cancel insurance on:
Your fund will contact you if your insurance is about to end.
If you want to keep the insurance, you must tell your super fund or make a contribution to that account. You may want to keep your insurance if you don't have any through another fund or insurer and you have a particular need for it (e.g. you have children or other dependants or work in a dangerous job).
Insurance for people under 25
From 1 April 2020, insurance will not be provided if you're a new super fund member aged under 25 unless you:
Why get life insurance through your super?
There are benefits in getting your life insurance through super:
However, you also need to be aware that:
You may opt for some cover through your super fund, and some cover directly from a life insurer, depending on the cost and the type of cover you need.
Check your life insurance cover before changing super funds
Before switching or consolidating super funds, make sure you can get the death, TPD or income protection cover you want, in your chosen fund. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over, as you may not be able to get insurance again without health checks. Seek financial advice if you are unsure.
How to check the insurance you have through super
To find out what life insurance you have with your super, either call your super fund, check your annual super statement or access your super account online to check:
You should also find out how your super fund is calculating your insurance premiums. For example, if your super fund has classified you as a smoker or blue collar worker, and these risk characteristics aren't relevant to you, you could be paying more for your insurance than you need to.
You may need to call your super fund to check how you've been classified as your annual statement may not provide this detail.
What if you have no insurance through super?
If you discover that you have no insurance through your super fund, and you think you should have cover, call your super fund to find out why and discuss your options.
Claiming on insurance through super
There are some important things you need to know if you're making an insurance claim through super.
Making a claim
To make a claim for insurance through your super fund you will typically need to submit a claim form. If you die, your estate or dependants should contact the super fund to find out how to claim death benefits.
Most super funds provide claim forms on their websites or you can call them and ask them to send you one.
When you make your claim, you may be asked to provide documentation that proves your condition, including medical reports. There may be waiting periods in some cases.
Some funds will allocate you a claims officer to be your point of contact if you have any questions during the claims process.
Unhappy with your super fund's claims process?
If you're unhappy with the claims process or unhappy because your claim is not accepted, complain to the super fund using its formal complaints process. Your super fund's website should have details about how to complain. If not call and ask about the process, or look in the product disclosure statement.
If you're not satisfied with the outcome, take your complaint to the Australian Financial Complaints Authority (AFCA). AFCA will generally not consider the matter unless you have used the superannuation fund's internal complaint process first.
AFCA replaced the Superannuation Complaints Tribunal (SCT) on 1 November 2018. Complaints lodged with the SCT before this date will still be dealt with by the SCT.
You do not need a lawyer to complain to your fund or to AFCA. Of course, you may find it helpful to use a lawyer or other professional adviser if you think the benefits outweigh the fees.
Industry Code of Practice
An Insurance in Superannuation Voluntary Code of Practice started on 1 July 2018 to improve the consumer experience of insurance in superannuation. If your fund's trustee agrees to comply with the Code, you should get better disclosure and claim and complaints handling. Your fund trustee should notify you if it is complying with the Code. You can check this on your fund's website.
To decide if insurance through super is right for you, work out how much cover you need, whether your super fund will offer you this cover, and compare the costs and conditions with other insurance providers.
| Posted in:News |
 "Many Australians want financial advice")
Money and Life
(Financial Planning Association of Australia)
A new ASIC report offers key insights into consumer perceptions of financial advice. Find out how to get off to the right start with your financial planning experience.
In an independent research study commissioned by ASIC, more than 2,000 Australians were asked about their beliefs and perceptions about financial advice as well as their experiences of receiving advice. The Financial advice: What consumers really think report, published in August 2019, shares findings from an online survey of 2,545 participants as well as group and one-on-one discussions. It presents a picture of a profession that Australians feel they need, but has some way to go in developing a sense of trust and value among consumers.
Many Australians want financial advice
According to the report, demand for financial advice among those surveyed is high. 41% said they planned to seek financial advice in the future. And nearly twice as many 79% acknowledged that 'Financial Advisers have expertise in financial matters I do not have'. These figures clearly demonstrate a recognised need for informed and professional advice among those surveyed.
In the 2017 Live the Dream survey and research report, the Financial Planning Association found that more than half of Australians (54%) saw financial freedom and independence as vital in their ability to 'live the dream.' So it's no wonder financial advice is on the to-do list of so many Australians.
Trust and perceived cost are barriers
But when it comes to actually seeking financial advice, a fair number never follow through on their intentions. The ASIC report found that 20% of respondents had thought about getting financial advice in the last 12 months, but hadn't gone ahead.
So just what is standing in the way of Australians taking steps to get professional advice on their finances? Figures from the report suggest that affordability, trust, and value are three significant barriers stopping Australians from meeting with a financial planner. 35% consider financial advice to be too expensive, 18% do not see the value in seeing a financial planner and 19% don't trust financial planners. For others it may simply be a case of not knowing where to start with the whole process of getting advice. In group discussions and interviews, people said they found it difficult to know how to find a financial planner and that they're getting quality advice.
Finding the right financial planner
Based on the experiences of people interviewed and surveyed for the ASIC report, asking around for a referral is often a good method of approach for finding a trusted financial planner.
But what if you don't know anyone who's had experience with financial advice? Many people may not encounter someone in their circle of friends or family who has been advised by a financial planner. If you do find yourself narrowing down your options based on your own research, there are tips from the ASIC report to guide you. In ranking the attributes they considered most important in choosing a financial planner, the following four scored highest with survey participants:
These findings tally with FPA research from 2017, which found the most common criteria for selecting a planner were trust, comfort, rapport, impartiality, tailored recommendations and reputation.
| Posted in:News |
 "Wills & powers of attorney")
MoneySmart
(ASIC)
Preparing for your family's future
No-one wants to think about death, but it's important to decide what will happen to your assets when you die. Find out how you can give instructions to your family about your legal and medical preferences should you fall ill or lose the capacity to make those decisions yourself.
Estate plans
An estate plan includes your will as well as any other directions on how you want your assets distributed after your death. It includes documents that govern how you will be cared for, medically and financially, if you become unable to make your own decisions in the future.
You must be over 18 and mentally competent when you draw up the legal agreements that form your estate plan. Key documents might include:
If you have made a binding nomination in your super or insurance policies, the beneficiaries named in those policies will override anyone mentioned in your will. If you have a family trust, the trust continues and its assets will also be distributed according to the trust deed, no matter what is written in your will.
Ask a legal professional to check your estate plan. A good estate plan should minimise the tax paid by your heirs, and help avoid any family squabbles.
Wills
A will takes effect when you die. It can cover things like how your assets will be shared, who will look after your children if they are still young, what trusts you want established, how much money you'd like donated to charities and even instructions about your funeral.
Your will can be written and updated by private trustees and solicitors, who usually charge a fee. Some Public Trustees will not charge to prepare or update your will if you nominate them to be the executor of your will. Other Public Trustees may only exempt you from charges if you are a pensioner or aged over 60. Check with the Public Trustee in your state or territory.
Smart tip
It's estimated that nearly half of all Australians die without a will, or 'intestate'. Don't let this happen to you. Make a will today.
You can buy will kits online but it's a good idea to ask a solicitor to review your will to make sure everything is in order. If a will isn't signed and witnessed properly, it will be invalid.
Keep your will valid and up to date as your legal rights change specifically, if you marry, divorce or separate; have children or grandchildren; if your spouse or beneficiaries die; or if you have a significant change in financial circumstances.
If you die intestate or your will is invalid, an administrator appointed by the court pays your bills and taxes from your assets, then distributes the remainder, based on a pre-determined formula, which may not be how you intended your assets to be distributed.
If you die intestate and don't have any living relatives, your estate is paid to the state government.
Testamentary trusts
A testamentary trust is a trust set out in your will that only takes effect when you die. Testamentary trusts are usually set up to protect assets.
Here are some reasons why you would create a testamentary trust:
A trust will be administered by a trustee who is usually appointed in the will.
A trustee must look after the assets for the benefit of the beneficiaries until the trust expires.
The expiry date of a trust will be a specific date such as when a minor child reaches a certain age or a beneficiary achieves a certain goal or milestone (e.g. getting married or earning a specific qualification).
Powers of attorney
Appointing someone as your power of attorney gives them the legal authority to look after your affairs on your behalf.
Powers of attorney depend on which state or territory you are in: they can refer to just financial powers, or they might include broader guardianship powers. You will need to check with your local Public Trustee.
The different types of power of attorney are:
You can prepare a few other documents to help your legal appointees and family as you grow older, including an:
The documents you choose to draw up will depend on your situation, and the responsibilities you're happy to entrust to others. Get legal advice if you are not sure.
Choosing your powers of attorney
Nominate people that you know are trustworthy, financially responsible, and likely to be around when you need them.
Your legal and financial housekeeping
Once your paperwork is in order, it will help your executor and family if you list the legal documents you have and where they are kept.
Here is a list of key documents to keep:
The NSW Government's Planning Ahead tools website gives more detailed information on advance care directives, wills, power of attorney and enduring guardianship.
A good will and estate plan can help make sure your wishes are carried out after you die, or if you are no longer able to make your own decisions.
Related links
| Posted in:News |
 "No need for crisis action: Treasury boss")
Colin Brinsden
(Australian Associated Press)
New Treasury boss Steven Kennedy doesn't believe there is a crisis warranting immediate spending from federal government, saying he is "cautiously optimistic" about Australia's economic outlook.
Addressing senators in Canberra for the first time since taking on his new role last month, Dr Kennedy believes the policy settings are right for the economy to strengthen.
"I'm cautiously optimistic about the way the economy is going to strengthen," Dr Kennedy told the Senate economics committee on Wednesday.
While there have been widespread calls for the government to do more, with economic growth at its slowest in a decade, Dr Kennedy said stimulus responses like those seen during the global financial crisis are "uncommon".
"A feature of the current weakness in the global and domestic economy is heightened uncertainty among consumers and businesses," he said.
"Given this uncertainty, medium-term fiscal and monetary policy frameworks can play an important role and contribute to a stable and predictable environment that is supportive of growth."
He said the the tax cuts that were instituted this year are having a positive effect on the economy.
The Treasury secretary said the drought has taken its toll on economic growth, but employment growth has been very positive, even though this has not resulted a marked lift in wages.
He said while there are a range of explanations for this, whether it be a change in demographics, technological or globalisation, it was a global phenomenon.
He said the most sustainable way to get wages up is through labour productivity.
But he warned there is still the potential for global shocks.
He said the de-escalation in trade tensions between China and the US is a welcome sign, but the situation around the UK leaving the European Union remains unclear.
"I am in no better place than perhaps anyone here to comment on the Brexit arrangements, but if they were to resolve themselves they would all be providing an upside boost to the global outlook and that would assist Australia," he said.
Dr Kennedy has just returned from Washington where he attended International Monetary Fund meetings and said it was pleasing to hear some more confidence in the outlook, particularly in the US.
But European countries continue to suffer weakness.
Last week the IMF downgraded its growth forecast for Australia for this year down to 1.7 per cent from 2.1 per cent.
As of June, Australian economic growth was running at 1.4 per cent, the slowest pace in around decade.
In the IMF's latest regional outlook for Asia and the Pacific, released on Wednesday, the authority also noted the region's growth will continue to lose pace in the short-term.
"Real estate markets will need to be closely monitored and appropriate macroprudential measures implemented," the report states.
But in a media briefing on the region on Friday, deputy director for the IMF's Asia Pacific department Jonathan Ostry said he believes Australian policies have reacted appropriately to the slow down.
New Treasury boss Steven Kennedy doesn't believe there is a crisis warranting immediate spending from federal government, saying he is "cautiously optimistic" about Australia's economic outlook.
Addressing senators in Canberra for the first time since taking on his new role last month, Dr Kennedy believes the policy settings are right for the economy to strengthen.
"I'm cautiously optimistic about the way the economy is going to strengthen," Dr Kennedy told the Senate economics committee on Wednesday.
While there have been widespread calls for the government to do more, with economic growth at its slowest in a decade, Dr Kennedy said stimulus responses like those seen during the global financial crisis are "uncommon".
"A feature of the current weakness in the global and domestic economy is heightened uncertainty among consumers and businesses," he said.
"Given this uncertainty, medium-term fiscal and monetary policy frameworks can play an important role and contribute to a stable and predictable environment that is supportive of growth."
He said the the tax cuts that were instituted this year are having a positive effect on the economy.
The Treasury secretary said the drought has taken its toll on economic growth, but employment growth has been very positive, even though this has not resulted a marked lift in wages.
He said while there are a range of explanations for this, whether it be a change in demographics, technological or globalisation, it was a global phenomenon.
He said the most sustainable way to get wages up is through labour productivity.
But he warned there is still the potential for global shocks.
He said the de-escalation in trade tensions between China and the US is a welcome sign, but the situation around the UK leaving the European Union remains unclear.
"I am in no better place than perhaps anyone here to comment on the Brexit arrangements, but if they were to resolve themselves they would all be providing an upside boost to the global outlook and that would assist Australia," he said.
Dr Kennedy has just returned from Washington where he attended International Monetary Fund meetings and said it was pleasing to hear some more confidence in the outlook, particularly in the US.
But European countries continue to suffer weakness.
Last week the IMF downgraded its growth forecast for Australia for this year down to 1.7 per cent from 2.1 per cent.
As of June, Australian economic growth was running at 1.4 per cent, the slowest pace in around decade.
In the IMF's latest regional outlook for Asia and the Pacific, released on Wednesday, the authority also noted the region's growth will continue to lose pace in the short-term.
"Real estate markets will need to be closely monitored and appropriate macroprudential measures implemented," the report states.
But in a media briefing on the region on Friday, deputy director for the IMF's Asia Pacific department Jonathan Ostry said he believes Australian policies have reacted appropriately to the slow down.
| Posted in:News |
 "Make your money last in retirement")
MoneySmart
(ASIC)
There are ways to stretch your retirement income to make your money last as long as possible.
Consider getting financial advice
Depending on your circumstances, you may want to seek financial advice to maximise your retirement income. For instance, if you have a substantial amount of super and want to invest some of it, a finance expert can help with investment options and tax advice.
Diversify your investments
With many retirees living beyond the age of 90, it's a good idea to invest at least some of your money in assets that will grow over time, like shares and property. This will help ensure your capital will grow in value to keep pace with inflation and your income needs. Spread your investments to avoid financial heartache in the future.
Manage your spending
A simple way to make your money last longer is to watch your spending. Use the budget planner to see how you currently spend your money and see where you can cut back to save for special items.
Take advantage of your entitlements
Even if you don't get the Age Pension, you may be eligible for other benefits, such as travel concessions, cheaper medicines and reduced council and water rates. The Seniors Card will also give you discounts on travel and some retail services. See our webpage on Over 55s your money.
Also see the Department of Human Service's Commonwealth Seniors Health Card webpage for more information.
Work part-time
Part-time work is a good option to ease into semi-retirement before fully retiring, or a way to keep extra income coming in. Here are some benefits of working part-time:
| Posted in:News |
Boutique financial consulting, advisory firm
SP Financial Advice Pty Ltd as trustee for The S&NP Investment Trust ABN 60 597 526 905 trading as SP Financial Advice is a Corporate Authorised Representative (No. 462691) of Matrix Planning Solutions Limited ABN 45 087 470 200 AFS Licence No. 238256.