Eastern Shore Sun AUGUST 2022 23
A FINANCIAL MOMENT
Our tips for protecting your wealth and family
Damian Gibson, Financial Adviser and Partner, Elevate Wealth
Lending a helping hand Hank Jongen General Manager, Services Australia HELLO everyone, We all have times we need extra help, and many people may not be aware of the specialist support available from Services Australia. We have social workers across the country who can help Australians in difficult situations. Our social workers can give you short-term counselling, information, and referrals to support services in your local area. Call us on your normal payment line if you want to talk to one of our social workers. You don’t have to be a customer to call. If you live in a regional
or rural area, one of our three Mobile Service Centres - Blue Gum, Desert Rose or Golden Wattle – may come to your town or a town near you soon (if you haven’t already had a visit recently of course). They offer services specific to the needs of regional and rural communities. These service centres on wheels also help with emergency on-the-ground support during disaster recovery efforts. Look on our website to see where our Mobile Service Centres are going next. Services Australia also provides specialist phone services. We have the Centrelink Indigenous Call Centre on 1800 136 380 for Aboriginal
and Torres Strait Islander customers who need help with our payments and services. We also have the Centrelink Multilingual Phone Service where you can call us on 131 202 to speak to someone in your language. Farmers can call the Farmer assistance hotline on 132 316 if they need help with the Farm Household Allowance. Lastly, we have the Financial Information Service, which provides independent and confidential information and education. Our Financial Information Service Officers can help you make informed decisions about your current and future financial needs. They help people
wanting to save for the future, returning to work, or managing a change in their circumstances like redundancy, compensation, or divorce. You can find out more about the Financial Information Service on our website, servicesaustralia.gov.au I strongly encourage anyone facing a big financial decision, like retirement, aged care, or managing a lump sum, to call the Financial Information Service on 132 300. Just say ‘Financial Information Service’ when asked why you’re calling. Like our social workers, you don’t have to be a customer to call. Until next time, Hank Jongen
HOW would you pay your mortgage and meet your other living expenses if your income stopped? Think about the risks that you face in everyday life. Some risks cannot be removed entirely, but we can mitigate their impact through personal life insurance products. If you do not have adequate insurance, an unforeseen death or illness could have severe consequences for you and/or your family. Here we discuss the four main types of life insurance.
Life
Life insurance is designed to provide a lump sum payment to your family or nominated beneficiary in the event of your death, or in other cases, it can provide an early payment if you are diagnosed with a terminal illness. The payment can allow your family to stay in their home, help provide for your children's education, and give your spouse financial security and the ability to maintain their lifestyle.
Total and Permanent Disability (TPD)
TPD is designed to provide you with a lump sum payment if you are no longer able to work due to an injury or illness. The payment should provide you with financial security to support your living expenses if the level of cover if correct. There are two types of TPD
insurance: • Own occupation Own occupation will provide a lump sum if you can no longer work in your own field of work in which you are trained and specialise. • Any occupation Any occupation, which generally costs less, will only provide you with a lump sum if you can no longer work in any occupation that might be suitable based on your training, education and previous employment.
Critical Illness (CI)
CI is designed to provide you with a lump sum payment if you become critically ill and require extensive medical treatment for example cancer, a heart condition, stroke or major head injury. The lump sum will allow you to access high quality medical treatment and cover rehabilitation costs, so you can focus on recovering rather than worrying about your finances.
Income Protection (IP)
IP is designed to supplement your income if you are unable to work because of an illness or injury. IP policies generally cover up to 70 per cent of your gross wage which helps you financially maintain your existing lifestyle and provide for your family while you recover. Two main features of IP are the waiting period and the benefit period. • Waiting period
This is the amount of time you wait before payments start. Waiting periods are generally between 14 days and two years. The longer the waiting period, the cheaper the policy. • Benefit period This is how long the payments last. Benefit periods range from one year up to 10 years, or up to a specific age, such as age 65. The longer the benefit period, the more expensive the policy. However, your income will be protected for longer. Finding the right insurance cover for your situation and budget can be difficult and confusing. If you already have personal insurances in place, it is important that you hold the correct types and levels of cover. Elevate Wealth can help ensure you have the right insurances in place to protect you and your family’s lifestyle and assets.
Information in this article is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.
Damian Gibson
