Tuesday, 17 January 2017

Cover for tradies and construction workers

The post Cover for tradies and construction workers appeared first on Smart Income Protection.

Going by the year 2005 report from the Australian Bureau of Statistics, tradesmen are the most likely to be injured during when compared to many others professions in Australia. While the government has set aside the worker’s compensation insurance that protects the employees from the rampart cases of accidents especially when making claims, this have had a huge impact for the people who need treatment after the cases of accidents.

While many have lost their source of wages through this process, many have always claimed rejection by the insurance companies who fail to compensate them in cases of accidents. This has led to a weakening start in the financial position of many families whose members have been a victim of work related injuries.

Through this, income protection policy has been key for those who need to protect their employment and potential loss of income in an easy way. This makes it mandatory that all people need to subscribe to the income policy as a way of ensuring that you do get the best deals whenever you are looking for these options.

This income protection policy is also vital for all the construction workers and traders who may need the best cover whenever they are working in the construction industry. When a worker has this cover, they are able to work in the industry without fearing to lose their income in case of an injury in the work place. This makes it a key component for the employers who need workers in their construction industry.

How is it administered?

The income protection policy is administered by paying the injured or sick worker a monthly payment through the periods when he or she is unable to work. This definitely makes it one of the best ways to motivate construction workers knowing well that their interests are covered from the existing insurance covers.

According to the latest research by the Australia Bureau of Statistics, 7 percent of all the workers often experience work injury related accidents in the construction sites. This means that at least 1 out of 8 workers in a construction will be injured at some stages in their lives. This alarming statistics means that measures has to be taken to curb the incidence whenever continuing with their daily working activities.

Income protection for tradies

When you have an injury and leave work for sometimes when recovering with no pay can be stressful especially when coping with the daily living expenses. This means income protection cover will always protect you whenever you are looking for the available options. While high- income white-collar jobs may pay these benefits, the low paying blue-collar jobs definitely needs them the most.

What do income protection cover entails?

The following are some of the information you need to know about income protection insurance cover:

The income protection policy often works as a guide for the income of the employees who do blue-collar jobs such as construction workers who often are injured when continuing their daily tasks in the best way possible. When you have the policy, you will always get facts that you would need when thinking about protecting your income in case of injury of accident when working leading to inability to continue with the same work.

The types are:

1. Indemnity value

In the policy, the insurance firm will assess your financial situation before making sure that you are compensated by taking you back to your initial financial position. This type of cover works well for both the white-collar and blue-collar jobs. It might be cheaper when compared to other available policies from other providers.

2. Agreed Value

Here they use the policy at the application time. In addition, you must provide all your financial documents when making your applications. You will always have all the documents you need when making your application. The benefits are often unchanged.

3. Guaranteed agreed Value

The financial position is assessed before making a claim. The financial evidenced must be assessed before a financial benefit can be given for the person who makes the claims.

Finally, this information should help you understand this protection policy as well as how it can help construction workers protect their income in case of an injury or accidents when working in the building companies.

Read more on SMART website

Sunday, 15 January 2017

Life Insurance for Pilots

The post Life Insurance for Pilots appeared first on Smart Income Protection.

We’re all aware of the comforting statistics used by airline companies to suggest that planes are safer than cars. Statistically, this is a true statement; airplanes (commercial and private) are safer than driving towards a destination. Despite numerous scenes depicted by the media of recurring crashes and disasters, there are less instances of death or injury when it comes to flying in lieu of automobiles. As a result, pilots can have their life insured even though flying is seen as more “dangerous”!

Insurance companies generally won’t augment your rates because you fly often, insurance companies regularly apply a separate, more meticulous framework to cover pilots.

Companies may not simply distribute insurance for a blanket of diversified aviators with a myriad range of aviation jobs or hobbies. For this, commonplace patterns are generally established to measure what type of insurance a pilot will receive. Pilots employed by commercial airlines are operating under strict guidelines, which translates to lower premiums. Solo aerialists such as helicopter enthusiasts, hot-air balloonists, recreational pilots and hang-gliders could render themselves higher payments due to risk. Speaking in terms of probability, patrons in commercial aircraft are safer than those in cars on the ground below. Patrons flying without national or international protocols (hobbyists) will see an increase in their payments especially when there’s less information on the region that takes place during the flight.

Insurance companies, undeterred by such statistics are tentative to insure those who operate such complex and sophisticated machines regardless which domain (commercial, private, hobby) they choose to operate. Pilots who operate an Airbus jet are assessed different from those use a Boeing 787, from a Bell 206 helicopter, or pilots who utilise a Cessna 172 because they are bounded by tighter national and international restrictions.

In order to gauge how much insurance will be needed, insurers may ask commercial pilots and private pilots the following: certifications, types of aircraft typically flown, experience, topology, and records of past incidents. Generally more competent pilots with less infractions and more experience and certifications could be responsible for lower premiums, while pilots without this may be responsible for a higher premium. For example, insurers might favor a pilot who operates in the continental US rather than someone who flies over the Amazon with a private jet. Typically after weighing one’s attributes, insurers may then decide to cover any losses or accidents. Typically after weighing one’s attributes, insurers may then decide to cover any losses or accidents. Read about Australian Insurance cover for medical professionals jobs and tradesmen here.

It is imperative to guarantee that all information given must be truthful and not misrepresent the true conduct of a pilot. Any information that is falsified or does not correlate with the true conditions of the aviator might have their policy invalidated in the event of death or personal injury.

Drafting coverage policy differs from aircraft to aircraft. For those who fly helicopters, the circumstances may warrant even higher scrutiny and higher premiums from the insurance companies. While helicopters may seem more dangerous, collisions and accidents are often the result of the terrain, not due to the aircraft itself. Companies that insure helicopter pilots may consider: the environment, ordinary flight conditions, compensation, whether the operation will be a rescue or militaristic one, and if there is any previous experience. Activity in a highly congested airspace can be very dangerous for helicopters, thus supports a higher premium. Areas with lower airlife and better situations support a lower premium. The general consensus is that precarious situations such as inhospitable terrain or unfavourably conditions justify an increase in payments, although higher experience and preferred topography might result in better coverage and more savings.

Those who operate other air-capable machinery aren’t excluded from being insured, but insurers will take notice of other craft in use. Other variables in determining premiums include time in the sky and mentioned above, the purpose of the aircraft. The more risk there is of your death, the higher the recurring payment shall be. Hot air balloon pilots hang gliders, recreational pilots and sport pilots have the potential for a more thorough inquiry as they are not under a centralised command that forcibly increases safety.

There are some instances where pilots may not be charged a premium at all and instead have policies geared towards high deductibles, then a cash-out of the policy.

Read more on SMART website

Wednesday, 30 November 2016

An Overview of Personal Life Cover

The post An Overview of Personal Life Cover appeared first on Smart Income Protection.


A personal life cover is defined as a contract with an insurance company where in exchange for premium payments, the insurance company offers a lump-sum payment (variously referred to as a death benefit) to named beneficiaries following the insured’s death. Typically, a life cover is chosen based on the goals and needs of the owner- permanent insurance such as universal and whole life provide lifetime coverage while term life cover generally provides protection for a set period of time. Remember, however, that death benefits from all types of personal life cover are generally income-tax free.

How it works

Permanent insurance provides life-long insurance protection so long as premiums are paid. With few exceptions, once your coverage has been approved, your policy cannot be cancelled by your insurance provider. Also, regardless of your health status, your coverage should remain in force.

Despite paying higher initial premiums, permanent insurance is actually less expensive in the long run with most permanent policies being eligible for dividends. If these dividend values are sufficient, you are likely to see your out-of-pocket premium payments end or drastically reduce after several years, yet your coverage should continue for life.

Permanent insurance also eliminates the problem of future insurability since it does not expire after a certain period of time. In fact, some policies come with guaranteed purchase options which should allow you to buy additional coverage at certain specified times, regardless of your health.

Lastly, permanent insurance builds cash value as the premiums you part with- some of which are guaranteed under many policies- can be used in future for any purposes you deem fit. For instance, you could borrow the equivalent cash value to provide income for your retirement, pay for your children’s education, or put a down payment on a home.


Some of the benefits of permanent life insurance include:

1. Principal protection- The cash value that your permanent insurance policy accumulates is not subject to stock market losses and thus maintains stability over time. This means that what you invest will stay with you.

2. Guaranteed growth- Regardless of how the markets are performing, what you earn should continue to grow at a fixed interest rate. Over time, your policy should build guaranteed cash values and increase with every passing year. It will never decline in value owing to changes in market conditions.

3. Extra income- The cash value of a permanent policy may be converted into an annuity which should provide you with income for life.

4. Cash source with no penalties- In instances where you may need additional financial resources to help fund unforeseen expenses, your policy can be an ideal source to help you meet these needs. Unlike IRAs and 401Ks that penalize you for accessing your funds prior to retirement, a permanent insurance policy should allow you to borrow money for any reason and pay it back at your convenience without having to pay penalties or taxes.

Who should get permanent insurance?

Permanent insurance is ideal for consumers in need of creating liquidity so as to pay projected federal estate taxes. In addition, those concerned about asset protection, where state laws provide that death benefits and the cash value of insurance policies are not subject to claims by creditors ought to apply.

Permanent insurance policies are also attractive since they contain an element of forced savings, especially in an environment of low interest rates. However, administrative and mortality costs of the policy will still be deducted.

Another situation where a permanent insurance policy is advocated for is for retired couples who are concerned about spending money because it may deplete the inheritance that they wish to leave for their children. Here, a retired couple could designate a small portion of their available funds in order to buy a permanent policy which should have a no-lapse guarantee. Such a policy would ensure that they enjoy their retirement whilst ensuring that their children receive the intended inheritance.

What to look for when comparing quotes from different companies

1. Term of the policy

The word 'term’ denotes the period during which your premiums are fixed- the shorter the term, the lower the premiums. Therefore, do not compare the cost of a 5-year policy to that of a 15-year term because in doing so, you may actually end up buying a more expensive life cover.

2. Your age

Various insurance companies compute age differently. If you get varying quotes from various firms, make sure that they have not made a mistake when determining your age since this is one of the most important cost drivers. If your age is wrongly computed, your quote essentially becomes useless because when the cover goes into underwriting, the mistake is likely to be identified and the premium adjusted as it ought to be.

3. Your health

Needless to say, your health is very important to life insurance providers. In order to get a quote, one need not undergo a physical examination but it is highly advisable that you be totally honest about your health condition when you get your quote. Moreover, make sure that your chosen agent does not engage in any monkey business by performing the old bait and switch technique i.e. if your agent shows you a 'preferred’ rate when you are not in tip-top shape, that quote is ultimately not going to do you any good and it is in fact a waste of time. The agent will rope you into applying for a cover that he/she knows will end up costing you more than the quote indicates. Many people caught up in this simply just give in and pay the higher rate which is a shame since there are insurance companies that cater to people with pre-existing health conditions.

This is why it is so important to be honest with the agent who is helping you and it is also equally important for them to be as honest with you.

4. Financial strength of the company

It is quite difficult to establish how strong your insurance provider is going to be when you need them-10,15, or even 20 years from now. However, rating agencies can take some of the guess work out of this process. Due diligence on the client’s part is highly advocated for and the least that you can do is to Google your chosen insurance company to see whether there is any news on them- good or bad.

Check the original

Tuesday, 22 November 2016

Getting the Best From Your Pilot Insurance.

First seen on Smartincomeprotection.com.au

Getting life insurance for pilots can be quite challenging. Because any aviation-related job is considered as a high-risk activity, there are insurance companies, which refuse to offer any type of coverage for them. Also with recent events that directly affected the pilots, more insurance become more hesitant or stricter in offering life cover. But, do not despair. For all the pilots out there, applying for this type of insurance, here are some things you need to know to make the process faster and easier.

Before discussing the ways to get life insurance, here are some difficulties and exclusions that pilots face when it comes to life cover. First of all, pilots, in general, are asked to pay higher premiums for their life cover. This relates to the fact that what they do for a job is very risky and they are more exposed to accidents. So, even though pilots earn more than average, they need to pay more to get this kind of cover.

In addition, there are also some changes in specific coverage in life insurance for all types of pilots. For example, many insurance companies do not offer life cover to pilots who operate in war zones, risky geographic places, and unstable places. So, those military pilots, missionary pilots and relief pilots usually have a much difficult time in getting life insurance.

There are also a lot of people who assume that hesitation from insurance companies to offer life insurance to pilots stems from the acts of terrorism in the airways. Terrorism is also thought to be the reason for the pilots' eagerness to get insurance. However, recent studies in the increased number of pilots with this type of insurance reveal that terrorism may not be the force behind this trend. The availability of pilot-specific life insurance by a handful or insurance companies has more effect in this trend than terrorism.

Now, those companies, which offer pilot-centred life cover understands their needs, and they specifically, designed the policy by considering the types of pilots. Distinctions have been placed on commuter pilots, military pilots and agricultural pilots. Different premiums and coverage are offered for the different types of pilots. To get more information about this, talk to insurance agents or the insurance company itself.

The following are factors to consider when shopping for pilots insurance, you can successfully navigate common aircraft insurance pitfalls, and choose the provider that meets your needs.

1. A Pilot-Centric Insurance Provider

When looking for pilot insurance, it is important to choose a company that understands pilots and their unique needs. Don't get lumped into that catchall 'pilot-category' by working with a company that doesn't specialise in airplane insurance. By choosing a specialised aircraft Insurance company, you get a plan tailored to your specific piloting practices and lifestyle. This will allow you to lower your premiums while ensuring that you, your passengers, and you’re loved-ones are truly covered.

2. Direct Writer Aircraft Insurance Company

Seek out a direct writer company instead of an independent agent when shopping for pilots insurance. Direct writer companies employ non-commissioned professionals who specialise in their company's aircraft insurance policies. Remember, pilot insurance policies are non-standardised, so it is imperative that you deal with a professional intimately familiar with the nuances of the many coverage and policies available today.

3. Availability of Discounts

While choosing an airplane insurance plan tailored specifically to your needs is the first step to lowering your premiums, additional discounts are out there. Look for aircraft insurance companies that offer programs that reward pilots for participating in training designed to improve their piloting skills. Participation in these programs can lower your premiums by 5-10%, and many aircraft insurance providers offer multiple programs that can be combined for significant discounts.

4. High A.M. Best Rating

An airplane insurance company's A.M. Best rating is a measure of the company's financial strength and its ability to pay claims. Ranging from A++ to F, why put your future in jeopardy by working with any pilot insurance company without a 'Superior' rating.

The insurance agents can also make getting life insurance easier with a specialisation in pilot-centred life cover. They can go over your financial situation and other needs, and look for the best company suited for what you really need. Finally, getting life insurance for pilots can also be achieved by searching online for policies that meet your needs and conditions.


Friday, 4 November 2016

Why is it important to get insurance cover?

Insurance is probably one of the most important things to have, whether its personal cover, car insurance, professional insurance or health insurance, it offers a cushion of support in the event that one picks up an unfortunate costly charge. In a world that is moving fast the cost of medical healthcare is increasing by the day such that it’s almost an obligation to have healthcare cover especially if you are at a risk of needing medical attention. Professionals like doctors, surgeons and nurses need constant medical cover given the daily risks they are exposed to, it’s a good thing there are insurance companies that offer doctor’s insurance to cover medical professionals.

What is health insurance?

Health insurance is a form of coverage that covers the cost of medical and surgical expenses. The insurance exists in may different types with the most common being the costs out-of-pocket coverage where the insured individual pays all their healthcare related costs and reimbursed at a later date or the coverage where the insurance provider covers the cost and the insurer makes payments to the provider.

In some countries health insurance is universal and covered by the government while in other places people have to pay for their own insurance or get cover as part of employment benefits.

When an individual is covered by health insurance they are protected against the risk of incurring very high medical expenses that could lend them in debt for a really long time. As such, insurance providers come up with financial structures like payable premiums so they always have liquid cash to pay for the medical costs as per coverage agreement. This has lead to the development of different cover policies with some offering better cover than other policies.

Why should you get health insurance?

While it’s true that no one really plans to get sick or need medical attention the fact is it can happen anytime. You can be involved in an accident that requires costly surgery or you could very well catch a nasty infection that requires costly medication. The truth is an emergency can occur at a time when you are financially squeezed and you need help covering the bill. At times you may have a healthy bank balance but the cost of health care is so high that having a health cover proves much cheaper than paying from your own pocket. Health insurance offers a neat cost effective cushion including many other benefits:


  • Protection form unexpected and high health care costs
  • Reduced health care costs as compared to paying from your own pocket
  • Free preventive care like vaccines, screenings, and some check-ups
  • Financial cover for serious accidents and sickness
  • Disability cover in the event of an accident

Health care insurance for medical professionals

Medical professionals are the most exposed people when it comes to health care. Doctors, surgeons, nurses and medical students are exposed everyday to some of the most hazardous health risks like infections and injuries at the hospital. In fact, the risk are so high that some insurance providers do not offer cover for this group of individuals or if they do they make it difficult to get the coverage with high premiums and complicated claiming procedures.

For medical professionals, it’s important to get a doctor’s insurance that offers adequate cover. You may practice preventive care but there are some conditions that can develop at a later date, for example if you work with radioactive substances and or material it can be a while until the medical side effects kick in and they usually are very costly to treat.

When choosing health insurance its also important to find out if the policy includes post employment coverage as it can be expensive to sign up with a new insurance policy when you leave work or when you develop some conditions linked to your former employment role.

As you can see there are many reasons why one needs health insurance, including the health care providers themselves.

Smart Income Protection

SmartIncomeProtection(SIP) offers an obligation free service to compare insurance quotes from several Australian insurance providers primarily for income protection, life insurance, health and trades insurance.

A term insurance cover should be 10 time annual income

Published in Mint on OCT 09 2012, Written by Kapil Mehta

I suffer from diabetes and want to buy a term plan. Will there be a loading and how much will the premium vary? If a particular insurer rejects my case, will other insurers provide cover?
It is very likely that insurers will increase premiums for you. The increase can vary between 25% and 150%. Insurers consider several factors while loading a policy. However in case of diabetes, fasting blood sugar level is the key. Empirically, we have noticed that if sugar level is above 200mg, a case is likely to be rejected. The loading across insurers is similar. It is unlikely that an insurer will accept your case if it is rejected by another on medical grounds.
Some insurers will conduct a pre-medical test wherein they conduct the medical tests before you formally apply for insurance. This saves you the effort of completing your proposal form and paying the premium in advance. In such cases, most insurers will make you pay for medical tests but refund the money if your insurance is finally placed with them.
I am a 30 years old married person. I earn around Rs.12 lakh per year. I have a term plan of Rs.50 lakh. Should I increase the cover amount? I have another life insurance policy for a cover of Rs.10 lakh started two years back. Should I continue the policy?
I generally recommend a sum assured that is 10 times annual income. This level of insurance broadly provides financial security to a family for 10 years if the main wage earner dies prematurely.
According to this rule of thumb, you should have Rs.1.2 crore of sum assured whereas you currently have Rs.60 lakh. I suggest that you purchase an additional Rs.60 lakh of term cover. This should cost you less than Rs.10,000 for a 30 year term.
Typically, it is expensive to discontinue a life insurance policy in the initial years. Surrender charges tend to be high. So, I suggest that you continue your second life insurance policy.
First seen here