News How Much Permanent Disability Insurance Do You Need

How Much Permanent Disability Insurance Do You Need?

Why it is still important to have permanent disability insurance in Australia.

With the rollout of DisabilityCare Australia, many Australians are of the mistaken impression that it will no longer be necessary to purchase permanent disability insurance. This is not true, as the current setup will not affect Australians who suddenly find themselves with a total and permanent disability due to accident or illness.

So, how do you decide exactly how much total and permanent disability insurance (TPD) you need?

The first thing to do is to get a firm grasp on your personal financial situation. For example, how much money do you owe on credit cards. You probably also have an automobile loan and a home loan: how much would it cost to pay them off? How much would it cost for utility bills? How much would it cost you to eat?

If you suffer a permanent disability, you may also have to retool your home and automobile to help compensate for your disability. You may also need carers to help you in your diminished physical capacity. How about your general living expenses? You may also want to make investments in the future. How much money will you need on a monthly basis to cover all of this?

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News Financial Planning for the Empty Nester

Financial Planning for the Empty Nester

Consulting a financial planner is a great first step; here are some things to help you prepare for your first meeting.

The best approach to financial planning is to work with a professional financial planner. We can’t give specific advice on a blog because everyone’s situation is different, but we can give you some general guidelines that will give you an idea of what to expect when you have your first consultation with a professional financial planner.

Your Debt Level

Generally, we are all for reducing debt, starting with high-interest debt such as credit cards. When you pay interest, that money is working for someone else. You will want as much of your money as possible to work for you.

Room for Rent?

An “empty nest” often has a room or rooms that can be used to provide rental income. If you don’t mind having someone else around the house, you may consider renting one or more of your rooms.

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News What is Term Life Insurance

What is Term Life Insurance?

Have you ever wondered how term life insurance works? Here is an easy explanation to get you started.

You may know term life insurance by one of its other names: life cover, death cover or life insurance. By any name, term life insurance is an inexpensive way to protect your family in the case of your death or diagnosis of a terminal illness.

You pay premiums for the policy. If you die or are diagnosed with an illness that is likely to be terminal within twelve months, your family receives a lump sum payment. Policies are different from provider to provider, but here are some of the more important variances.


The benefits available in life insurance policies can differ from provider to provider. You may choose your level of coverage based on how much you want to spend on premiums. Most companies have a minimum amount that you can apply for and a maximum amount. The maximums are based on age, decreasing as one becomes older. Premiums tend to increase with the beginning age of the insured.


Many policies have various inclusions. For example, many offer to advance part of the payout for funeral expenses. Some have inflation clauses or increase by a predetermined amount every year to compensate for inflation. While some policies don’t guarantee renewability, some do guarantee that a policy can be renewed as long as premiums are paid.

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News Understanding Superannuation in Australia

SMSF vs Industry Super Funds: Which One is Better for You?

Why many investors choose industry super funds over SMSF—and why many don’t.

There are as many situations as there are individual investors. SMSFs, or “Self Managed Super Funds,” have become a popular choice among individual investors and small groups of investors, while industry super funds have also become a popular choice for individuals. While there are plenty of other choices such as retail funds, this article will explain the difference between SMSFs and Industry Super Funds

So, which one is better? It depends upon your situation. While we always recommend seeing a superannuation professional for advice, we would like to offer some general guidelines to give you a better idea of what to expect when you have your first consult with a financial planner about superannuation.


Changes in superannuation regulations have allowed a lot of Australians to take the opportunity and exert control over their super funds. An SMSF allows for a lot more individual control than an industry super fund does. While the industry super fund is basically a passive investment that requires no effort on your part, an SMSF will require you to be a trustee of your own fund. That makes compliance and risk your responsibility.

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News Difference Betweek Trauma and TPD Insurance

The Difference Between Trauma Cover and Total Disability Insurance (TPD)

Many Australians carry both trauma cover and total disability insurance (TPD). Here’s why.

Although trauma cover and total disability insurance (TPD) are similar, they are designed to produce two different outcomes. That makes it important to understand what both coverages do and what they don’t do.

Trauma Insurance: the Basics

Trauma insurance is taken out for specific illnesses. It pays out a lump sum if you are diagnosed with that illness. The lump sum is designed to help you take care of your financial responsibilities while you recover: both your standing expenses and new expenses such as rehabilitation or carers. Ideally, you are able to fully recover and get back to living your life with no severe financial consequences.

Trauma insurance covers such illnesses as cancer, heart attack and coronary bypass surgery. The illnesses are very specific and are defined within your insurance policy so that you know exactly what occurrences will result in benefits and what ones won’t.

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News Tips for Successful Investing

Tips for Successful Investing

Finance broker provides tips to help simplify and refine the process of investing.

Investing can be confusing for those who aren’t “in the business.” Today’s investment landscape is fraught with pitfalls for an inexperienced investor trying to “go it alone.” Though we always recommend going to a professional finance broker, here are some investment basics.

Slow and Steady Wins the Race

Often, investors risk their chances of long-term success for short-term gains. Here is how the investment market works: when somebody wins short-term, somebody else loses. But over time, most people who stay in long term with solid investments “win” as the market grows. Long-term investing can give you peace of mind in the short term.


We can only provide general concepts here and not individual advice. However, we can say that we encourage our clients to diversify their investments. Today’s “hot investment” can be tomorrow’s “cold fish.” There is security in diversification.

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News Facts About Income Protection Insurance

Fast Facts: Income Protection Insurance

A basic guide with facts that can help you compare income protection insurance.

Income protection insurance is designed to help provide funds for you and your family in case you are unable to work for an extended period of time. Illness or injury can create a lot of unanticipated expenses, compounded by the fact that you are unable to produce income. You may have to take part in expensive rehabilitation and even reformat your home to make allowances.

Your spouse may have to take time off work to assist you in your recovery or you may have to hire a full time nurse. In addition, your daily household expenses are still there, such as groceries, utility bills, mortgage repayments and car loan repayments. With no income, this could be crippling to your finances. Luckily, protection is available in the form of income protection insurance.

The Elements of Income Protection Insurance

To compare income protection insurance policies, you need to know some basic facts. There are two main points that you will compare: the amount or percentage of your income that you will want to receive if you are unable to work for an extended period of time and the length of time you would like to receive it.

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News Making the Most of Your Superannuation Guarantee

Making the Most of Your Superannuation Guarantee

Useful facts about maximising your superannuation guarantee and securing your future.

At Approved Financial Planners, we are experts at helping you maximise your super funds to help ensure a comfortable retirement. Consequently, we always recommend seeing a professional financial planner such as those in our Perth office to look at your individual situation and make recommendations.

However, we can give you some general advice and information to help you prepare for your first visit. Here are some useful facts about your superannuation guarantee and how they relate to the typical Australian. All of this information is available on the ATO website, though in a slightly more complicated form.

As of 1 July 2014, your employer must contribute 9.50% of your income to your superannuation fund. This number will increase by 0.5% each year until 2019, when it will have reached 12%.

To be eligible for superannuation guarantee, you must make at least $450 per month. If you are less than 18 years of age or work in a domestic capacity, you must work 30 hours per month, in addition to making $450, to be eligible. As of July, 2013, those who are 70 years of age and over are now eligible for the superannuation guarantee.

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News Financial Planning for Financial Security

How the Financial Planning Process Can Protect Your Future

How the financial planning process can help you control your future without adversely affecting your current lifestyle.

We often refer to financial planning as a product. In reality, though, it is a process in which your finances are managed in the short term to produce long-term gains and financial security. A great financial planner can not only help you achieve your long-term retirement goals, but also make sure that you are prosperous enough to enjoy your life on the way to retirement.

To this end, the financial planning process usually involves three phases: risk management, wealth creation and retirement planning.

Risk Management

Risk management involves insuring yourself and your investments to mitigate the risk of losing them if you suffer a permanent injury, severe traumatic illness, premature death or any other circumstance that may prevent your financial plan from reaching fruition. Your financial planner will discuss various covers with you and work with you to ensure that you, your family and your assets are protected in the case of any unforeseen illness or injury.

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News Income Protection Insurance for Subcontractors

Income Insurance for Subcontractors: What You Need to Know

Why income insurance is an important part of protecting a subcontractor’s assets.

Subcontractors find themselves in a unique position. They don’t have a boss or a regular paycheck, meaning that they don’t have access to workers’ compensation or sick leave. If they become too sick or injured to work, they don’t have a financial “cushion” upon which to lean on. That is why many purchase income insurance, or “income protection insurance.”

How Income Protection Insurance Works

Simply stated, if you are hurt or ill and unable to work, income protection insurance can replace as much as 75% of your income until you are able to go back to work. This comes in handy for feeding your family and paying bills while you are unable to produce income through working.

Every income protection insurance policy has three parts:

Benefit Amount

This is the amount of money you will

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