1. What is Trauma Insurance?

    Trauma Insurance is about protecting you and your family’s lifestyle whilst also providing you with choice when it matters most – choice to receive the best treatment available, choice to allow your spouse to take some time off work to help you rehabilitate and choice to use the money however you want.

    No one thinks it is ever going to happen to them – but what if one day, you unexpectedly had a heart attack like one of our members Jan. Jan was 50 years old and fit and healthy, but one day after suffering from stress, Jan had a heart attack. Jan was told she was ‘half a centimetre away from death’ that day.

    Luckily Jan had taken out trauma insurance as there was a history of breast cancer in her family. She received payment six weeks later and was able to choose what she wanted to do with the funds, such as pay off debt, or set aside the money for retirement as she may need to retire earlier.

    “I now see why it is so important to be adequately insured to protect against unforeseen events in life particularly where health is involved, because it has a major impact on your life,” says Jan.

    Some people are aware that they are at higher than normal risk due to family history. Sadly the majority of people who are diagnosed with cancer, cardiovascular disease or serious illness did not know they were at risk.

    Dealing with the emotional consequences of suffering a serious illness can be hard enough, but adding financial stress on top of this can be devastating. Trauma Insurance eases the financial burden allowing you to focus on getting well.

    Trauma insurance pays a cash lump sum payment in the event of contracting a specified disease or trauma and covers up to 58 defined events such as cancer, heart attack and stroke.

    Trauma insurance gives you a lump sum payment to ease the financial pressures of not working and could be used to cover things such as:

    • To pay for a specialist or possibly receive international medical attention
    • The cost of modifications made to the home or relocating to more suitable accommodation
    • Financial obligations whilst recovering (living expenses, debts) • Rehabilitation and recovery costs
    • Paying off outstanding debts or providing an ongoing income
    • A professional carer
    • Enabling your partner or family member to reduce their working hours to look after you.

    Posted on October 26, 2011 Insurance Money Expert Leave a Comment

  2. Renovate or Buy

    Whether you have outgrown your existing home, or you’re looking for a larger or modern home, you might be weighing up whether to renovate your present house or buy a new one.

    It may make more sense to renovate than to move if your property is unique in its location, size or design qualities, or if you love your home but it’s just not big enough.

    Renovating is a great way to get the house you want. You have the freedom to add design features that suit you and your family whether it’s for an addition to the family, the ensuite you’ve always wanted or a games room for the kids.

    The aspects of a house most likely to capture buyers’ attention are bathrooms, the kitchen, entertaining areas and landscaped garden spaces.

    Benefits of Renovating:

    • You can stay in the house that you like and make improvements according to your individual choice and style
    • Your renovated house may be worth a lot more in the real estate market
    • You can avoid the costs associated with selling (such as stamp duty, legal and agency fees).

    Benefits of Buying:

    • Buying a new home is usually quicker and easier than undertaking a renovation
    • When you buy you know exactly what you’re willing to spend and choose a house to meet your requirements
    • You can avoid the risk of improving your current home beyond the increased value you might get from the sale of the home.

    Before you make the final decision, look at the real estate market, get an appraisal on your house and look at prices of houses that you would consider buying instead. Ask a construction professional what your desired renovation is likely to cost. A small investment in good advice can really pay off when you decide to sell your home in the future.

    Whether you decide to renovate or buy it is important to remain focused on your finances and more importantly, choose the right loan.

    Posted on October 16, 2011 Home Loans Money Expert Leave a Comment

  3. Five things to remember about motor vehicle insurance

    Everyone is well aware of the fact that car insurance is a necessary expense that must be included in every driver’s budget.

    There are basically three types of policies available. ‘Comprehensive’ insurance will cover you for the damage to your vehicle as well as the damage you may cause to other people’s vehicles or property. ‘Third Party Property Damage Fire and Theft’ only insures your car if it is damaged by fire or as a result of theft as well as damage to other people’s vehicles or property that you cause with your vehicle. ‘Third Party Property Damage’ only covers damage you cause to other people’s vehicles or property.

    When looking for an insurance policy to meet your needs and budget, here are five things to remember:

    1. Think about who will drive the vehicle, even if only on occasions. Ask if there are any restrictions on who can drive the car, particularly young drivers.
    2. Find out about the Excesses that apply. An Excess is the first part of the claim that you may need to pay depending on the circumstances of the accident. Ask about any additional excesses for young or inexperienced drivers, or if the policy provides the ability to select a voluntary excess allowing you to reduce your premiums.
    3. Talk to your insurance consultant about the options available to tailor your insurance; for example, can you remove the excess for windscreen or other window glass breakage; is a hire car available should yours be off the road due to an accident?
    4. Consider whether it is important to you to have a choice of repairer and see if the policy allows you to do so.
    5. Resist the temptation not to have any insurance. You might be able to pay for damages to your own car, but can you also afford the repairs to someone else’s car or other property? What if you hit a high-end BMW or damaged a set of traffic lights? At the very least you should have third party property damage cover to avoid paying for these repairs out of your own pocket.

    Find out more about car insurance which can be tailored to suit your needs.

    Posted on October 9, 2011 Insurance Money Expert Leave a Comment

  4. 99 days ‘til Christmas – are you ready?

    With only 99 days left until Christmas Day, it is time to kick start your savings plans to avoid falling into the festive season debt trap.

    With the direction of future interest rates uncertain and the continually soaring energy and grocery prices, the Christmas period is the time when families are most likely to under estimate the financial burden.

    Often people forget about the myriad of other expenses beyond presents, such as food and drinks and of course any travel expenses such as petrol and accommodation.

    The good news is that it’s never too late for those who haven’t yet considered budgeting for the Christmas period and offers the following tips:

    • Reflect on last year … consider how much you spent last year and what you could have done without. How much difference will it really make?
    • Make a list … make a list of all the expenses you can foresee during that period, including presents, food, alcohol, flights, accommodation and decorations.  
    • Draw a line … buying Christmas presents can be the most costly of all, so allocate an overall budget for presents and divide it among your list of friends and family and stick to it.
    • Do it differently … as families grow so does the financial outlay for presents. Consider doing a draw whereby you only buy for one immediate family member.
    • Plan ahead and do your research … write down who you’re buying presents for and what you’re wanting to buy before you step foot in a shop to avoid buying on impulse.  
    • Avoid getting swept up … it’s easy to get swept up in the moment and buy things that were not originally budgeted for or spend a little over the budgeted amount – it all adds up.
    • Think outside the square … why not take the opportunity to show your creative side. Often things you make yourself are more personal than something you’ve bought in a store.
    • Keep track … hold on to receipts so you know exactly how much you are spending which could assist with budgeting in the future.
    • Be a bargain hunter … don’t be afraid to take advantage of the pre Christmas sales, no matter how far out from Christmas they are.
    • Avoid credit … avoid using high interest credit cards or store cards unless you know that you will be in a position to pay it off. If in fact you must use credit, choose a personal loan so the amount is fixed and will not blow out as it can with a credit card. It also gives the advantage of shopping with cash and achieving a better discount on a chosen item.
    • Start now … start your savings today. Check to see if your credit union or bank offers a high interest Christmas savings account that automatically deducts money from your pay to give you a lump sum in time for Christmas.

    To make saving for Christmas a little easier, we have developed an easy-to-use online budgeting calculator, together with a Christmas Club Account designed to help members save for their Christmas related expenses.

    The Christmas Club Account features a limited access option, a higher rate of interest, no monthly account keeping fees and the option of having part of your wage deposited directly into your account.

    “No one really notices a small amount deducted from their wage each week, and it’s comforting to know that when December comes around you have a lump sum ready to spend without having to rely heavily on credit cards,” Mr Matters said.

    “The last thing we want people to do is start 2012 with financial difficulties so we’re advising people to start their planning now.”

    Posted on October 2, 2011 Money Expert Saving Leave a Comment