Consumer credit insurance, also called loan or mortgage protection insurance, helps you meet repayments on a mortgage, personal loan, credit card or other loan contract if you lose your job, cannot work due to illness or injury, or die. It may also cover theft of your credit card or even replacement of faulty goods you have purchased with a credit card. It’s often sold when the loan or credit card is set up but it’s your choice, as a borrower,…
If you’re working and haven’t yet reached the point of financial independence then income protection insurance should be on your radar. An income protection policy, can help you protect your greatest asset – the ability to earn an income. At the heart of an income protection policy, is the promise to pay the policy owner a regular benefit, usually 75% of their normal income, if they are unable to work due to accident or illness. Payments are made after an…
Recently retired couple, David and Erica, were fit and active, and planning a sea-change when David suffered a stroke, leaving him unable to walk or speak. The unexpected hit like a bombshell and put all plans on retirement and age pension on hold. David had been a strong, strapping man, who now needed around-the-clock care. His doctor recommended either an aged care facility or a home-carer that provided appropriate services. Over the course of their 25 year marriage, the couple had…
Over the past 30 years, Australians’ household debt has increased. According to the Reserve Bank of Australia, our household debt-to-income ratio has risen from 70 per cent in the early 1990s to around 190 per cent today. With numbers like this, it’s understandable that you might feel like you’ll never get out of debt. Changing your thinking around your finances, however, and learning how to make sure your money is working for you will reap great rewards. Below, we’ve outlined…
Tap and go. Talk about hammering the plastic. In November 2019, Australia’s 14.7 million credit card accounts were used to make over 256 million transactions with a total value of $29.2 billion. Card holders who don’t pay their balances in full every month are currently paying interest on more than $31 billion worth of credit card debt. Interest rates range from 10% to 22% per annum so that adds up to billions of interest owing – and growing! It’s not just…
While millennials have for decades been treated like ‘the children of Neverland, who never grew up’, the reality of retirement planning is fast catching up with this generation, who are now young adults between the ages of 24 and 40. Like generations before them, they are now buying, or at least trying to buy, homes and starting families of their own. And with this, the stark reality is that their retirement is looming just around the corner in the early…
Being retrenched from your job can be hard to accept. It is the sudden shock that catches most people but try not to take it personally. When you job is made redundant, it is usually not about your personal performance; it’s the performance of your employer’s business, the industry sector in which you work, or even the global economy. Dealing with the key considerations below can help you take back control of your life and career. Take control The emotional…
It’s a sad but unavoidable fact: one day we are all going to die. You will most likely have clear ideas as to how you would like your hard-earned wealth – your ‘estate’ – to be divided amongst your loved ones or other beneficiaries. However, estate planning is a complex area of law and basic mistakes can see Wills declared invalid, money ending up with unintended recipients, or benefits reduced by avoidable tax bills. So how can you avoid making…
Going to university is a time of growth and independence, although the associated costs can make it an expensive proposition. Yet as Ben found, there are ways to minimise the cost and kick-start your financial future. Here are four ways to manage uni and money. The day Ben was accepted into law school, he was first excited, then nervous; his life was changing forever. Ben asked his parents whether they had a hidden cache of gold buried somewhere to fund…
Welcoming a new family member is exciting but with so many aspects of your life changing, when it comes to your finances some forward planning towards your baby budget can make the transition so much easier. Fortunately, babies allow several months to prepare for their arrival and can be easy to get caught up in the excitement. When making preparations it’s important to have all of Bub’s needs ready; but is equally important for Mum and Dad to be financially…