Avoiding under- insurance making sure your family wont suffer by lindahy

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Avoiding under- insurance making sure your family wont suffer

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									  September 2009


Avoiding under-
insurance: making
sure your family
won’t suffer financial
hardship.
Most people have insurance to
cover their home and car, but often
don’t have enough insurance to
cover themselves or their families if
                                                                 More than 40% of people who have a heart
misfortune was to occur.                                         attack will die within 12 months. More
A study conducted for the Investment and                         than 50% of these deaths occur before the
Financial Services Association (IFSA)                            person reaches hospital. 4
found that 60% of Australian families with                       And there are many more startling health statistics.
dependent children have not got enough life                      We often think heart attacks, strokes and cancer
insurance cover to look after their family for                   happen to older people. The reality is that misfortune
a year should they die. 1                                        can happen to people of any age. Here are some
                                                                 real claims provided by our insurance provider:
The current cover you may have in your AUSCOAL
Super fund may not be sufficient. For a family with
young children and average earnings of $50,000 per                   Age at      Sex       Cause of claim          Benefit
year, life insurance needs are estimated at $500,000 to               claim                                         paid
$650,000. Yet, the average insured amount in                         31       Female       Leukaemia             $1,027,000
superannuation funds is just $70,000. 2 How much life                35       Female       Cancer                $ 315,000
insurance do you have in your AUSCOAL Super fund?                    48       Male         Coronary              $ 666,313
You may also want to check to see if this amount                                           artery disease
increases or decreases as you get older.                             49       Male         Accident              $2,000,000

Yes, it could happen to you…
You pay home, car and health insurance, so you may               Don’t forget to nominate your beneficiaries
not be keen to pay for extra insurance for something             Any insurance cover you have with AUSCOAL Super
you think will never happen. Statistics show that the            is generally available to your dependents as a tax
chances of serious illness, injury or death are higher           free lump sum payment. To ensure your loved ones
than you probably think: For example, one in three               are cared for, you need to nominate your
men and one in four women will be diagnosed with                 beneficiaries. You can download our Nominate Your
cancer before the age of 75. 3                                   Beneficiaries form and find out more information
                                                                 through our Nominating Your Beneficiaries fact
                                                                 sheet.
  1
    IFSA – Rice Walker Fast Facts: A Nation Exposed!             Visit www.auscoalsuper.com.au or call us for a copy.
  Underinsurance Key Facts, August 2005.
  2
    IFSA – Rice Walker Fast Facts: A Nation Exposed!
  Underinsurance Key Facts, August 2005.
  3
    Australian Institute of Health & Welfare & Australasian
                                                                 4
  Association of Registries, Cancer in Australia: An Overview,    National Heart Foundation Statistics, Australian Facts 2001
  2006, Canberra, 2007.                                          Highlights.
               Example: a hypothetical                                                              Where can I find more
               case study                                                                           information?
               Shane and Anna’s story                                                               AUSCOAL Service Officers can provide you with
                                                                                                    general information about our products and services,
               Shane and Anna are married and have two young                                        superannuation in general and enquiries you may
               children. Shane was the primary income earner and                                    have about your account.
               Anna works part-time. Tragically, Shane was killed in
               a car accident. Anna’s employer was understanding                                    Phone: Toll free 1300 AUSCOAL (1300 287 262)
               and let her have a couple of months off work, but                                    Monday to Friday, 8am to 6 pm
               she soon had to return to work to meet her living                                    Email: enquiries@auscoal.com.au
               expenses.                                                                            Website: www.auscoalonline.com.au
                                                                                                    In person: You can arrange an appointment.
               On one income, Anna had to cut back on living
               expenses and all luxuries. The children really felt the                              Need advice?
               loss of their father and she would have liked to have
               taken them on a holiday, but it was not financially
                                                                                                    AUSCOAL Advisory Services Pty Ltd employs
               possible.
                                                                                                    qualified, licensed financial advisers who can provide
                                                                                                    you with professional advice about your personal
               As Shane was only in his 40’s when he died, he had
                                                                                                    situation including your insurance requirements and
               only accumulated $130,000 in super and $70,000 in
                                                                                                    help you make some decisions about your financial
               insurance. The lump sum she received from Shane’s
                                                                                                    future. They are not paid commissions, rather they
               super and insurance paid $200,000 off their
                                                                                                    simply recommend what they think is best for you
               mortgage and car loan, but it meant she still had to
                                                                                                    and your future.
               find the money each month to make payments on
               the remaining $120,000 mortgage and the family’s
                                                                                                    Specific superannuation advice -
               day-to-day living costs.
                                                                                                    Use this service for quick advice on a specific
               Anna’s parents helped her out and she received                                       superannuation issue affecting your AUSCOAL
               some Government benefits, but in the end she had                                     Super account such as salary sacrifice, voluntary
               to sell the family home and move to less expensive                                   contributions, selecting investment options or
               housing, the children had to change schools and she                                  transferring your other super to AUSCOAL Super.
               had to return to full-time work. The children often                                  This advice is free.
               said to her they missed their dad and their old life.
               Anna wished Shane had taken out more life                                            Complex superannuation advice -
               insurance.                                                                           Use this service for advice on more complex
                                                                                                    superannuation issues affecting your AUSCOAL
                                                                                                    Super account such as account-based pensions
                                                                                                    and transition to retirement pensions. This advice
              Important information                                                                 costs $110 (GST inclusive) for each Statement of
              The case study is a hypothetical story based on our insurance                         Specific Advice, which will be deducted from your
              provider’s understanding of typical customers and is included                         AUSCOAL Super account at the time you accept
              for illustrative purposes only. The name and identifying                              this service.
              features do not reflect any particular person.

                                                                                                    To arrange an appointment call toll free 1300
                                                                                                    AUSCOAL (1300 287 262). AUSCOAL Advisory
                                                                                                    Services is a member firm of Genesys Wealth
                                                                                                    Advisers operating under AFSL No 232 686.




                          Toll free               1300 AUSCOAL (1300 287 262)                              Life’s easier with AUSCOAL Super
                          Fax us:                 +61 (2) 4948 6955
                          Email us:               enquiries@auscoal.com.au
                          Visit us:               www.auscoalsuper.com.au




IMPORTANT INFORMATION: The information about the Fund in this fact sheet is of a general nature. This information has been prepared without taking into account your
objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information, having regard to your objectives, financial
situation and needs. The information in this document is based on the understanding AUSCOAL Superannuation Pty Ltd has of the relevant Australian laws as at the date of
issue. This document assumes current taxation and superannuation laws will continue to apply without any change. For more information you may contact us on toll free 1300
AUSCOAL or by emailing enquiries@auscoal.com.au. Before making decisions about your interest in AUSCOAL Super you should first consider our Product Disclosure
Statement available at www.auscoalsuper.com.au or by calling toll free 1300 AUSCOAL. Issued by AUSCOAL Superannuation Pty Ltd | ABN 70 003 566 989 | AFSL 246864.
Trustee for the AUSCOAL Superannuation Fund | ABN 16 457 520 308. AUSCOAL Advisory Services Pty Ltd ABN 22 104 151 635 is a Corporate Authorised Representative
(number 240325) of Genesys Wealth Advisers Limited ABN 20 060 778 216 AFSL 232686

								
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