About Veronia Reed

Veronia Reed is a keyperson and life insurance specialist. By focusing upon this specialist niche, you can rest assured that you're receiving quality advice that is current and appropriate for your needs.

Do you need financial advice?

Why financial advice?

The financial decisions that people make at different turning points in their life can have immediate and life-long consequences.
Good advice should provide the information you need to make the right decisions – decisions that suit your circumstances and your aspirations. Insuring the ‘keyperson’ within your environment allows you continue with your aspirations should the unexpected occur.

 

What makes good advice?

Good advice helps you make the most of the assets you have, continue building those assets, and achieve financial security and peace of mind.
Good Advice puts your needs first, helping you better understand your financial situation and considers alternatives while providing solutions and strategies that suit your needs; In short, financial advice helps you make better informed decisions while providing you with security and peace of mind.

If you are in doubt with regards to your requirements or if you would like to review your existing life insurance, please feel free to call me on 1300 78 55 77.

Can you gamble with cardiovascular disease

The National Heart Foundation of Australia has estimated that nearly 4 million Australians have cardiovascular disease (CVD); almost 20% of the population. CVD prevalence increases with age, with 35% of Australians aged 55-64 reporting a long term CVD condition.
The Heart Foundation goes on to say that cardiovascular disease is the second largest cause of disease burden in Australia; accounting for 18% of the total burden of disease.

Cardiovascular disease is still Australia’s biggest killer. In 2011, CVD was the cause of 45,600 (31%) of all deaths—responsible for more deaths than any other disease group.

Knowledge and application of that knowledge is our battle against cardiovascular disease. By knowing the risk factors and developing protective factors we can reduce the likelihood of suffering a heart problem or disorder and improve our capacity to respond should a disease occur.

A protective factor can therefore be described as one that contributes positively to an individual’s health and wellbeing. Factors which protect against CVD can vary from levels of HDL in the bloodstream sufficient to help protect against arterial plaque formation to behavioural factors, such as getting regular physical activity or eating plenty of fresh fruit and vegetables. Socioeconomic protective factors, such as having a strong social support network or an adequate level of income, are also important.

Knowledge of the potential for cardiovascular disease should also be a reason to discuss whether you or your business is prepared for it to happen to you or someone important to you. What would you do if you could not work or have the work done by an employee integral to your business? Would your business survive losing a ‘keyperson’ for an extended period of time, or worse, permanently?

Knowledge is good, but only if you apply that knowledge. Safeguard your family and your livelihood, review your insurance cover and be proactive in looking after your health.

If you are in doubt with regards to your requirements or if you would like to review your existing life insurance, please feel free to call me on 1300 78 55 77.

Fact sheet released by National Heart Foundation of Australia www.heartfoundation.org.au

SMSF Funds Lack Important Protection

‘SMSFAdvisor’ recently highlighted a study carried out within the insurance industry which revealed that the majority of SMSF trustees are underinsured when it comes to life insurance – possibly without even realising it. It went on to explain how only 13% of those partaking in the study actually had life insurance with many believing they did not need it or were ignorant to the fact their SMSF did not provide for them.

Life insurance is often misunderstood when it comes to knowing how much is required. It does not need to be complicated but it does need to be considered.

If you are in doubt with regards to your requirements or if you would like to review your existing life insurance, please feel free to call me on 1300 78 55 77.

Original article released by www.smsfadvisoronline.com.au on 6/06/2013

SMSF Investment Strategy update time

Now that it is getting closer to the end of the financial year, it is an opportune time to review your SMSF investment strategy.

The ATO now require this investment strategy to include a review of the need for life insurance within the SMSF. 

While there is no obligation to have it, it is required to be considered and documented.

If you would like to review your existing life insurance, please feel free to call me on 1300 78 55 77.

Total & Permanent Disablement Tax Deduciton Portions

Total & Permanent Disablement Tax Deduction Portions

Changes were recommended to the Income Tax Assessment Amendment Regulations which related to the deductible portion of premiums for TPD insurance, and were passed on 5 October 2011.

These changes limit the deductible portion of TPD insurance premiums and give superannuation funds the option of using a simpler method to determine this portion, without having to engage an actuary.

Key changes from the draft Regulations include:

1. Clarification that deductibility is not affected if terminal illness is included into the insurance policy;

2. The inclusion of domestic (home) duties definition; and

3. The tightening of the definitions of TPD own occupation and TPD any occupation.

Importantly, there were no changes to the specified deductible portions of eligible TPD definitions, as follows:

Insurance Policy

Specified Deductible Proportion %

TPD Any Occupation*

100%

TPD Own Occupation*

67%

TPD Own Occupation bundled with Death (Life Cover)*

80%

*(Including with one or more of the following inclusions: ADL, cognitive loss, loss of limbs and domestic (home) duties)

(Article courtesy of AIA Insurance, 19 April 2012)

The Importance of Trauma & Income Protection Insurance

How would your family manage when faced with a traumatic event ?

When faced with a traumatic event, families need to cope emotionally, you may also need to make changes to your living arrangements and you may also be facing loss of income. The last thing you need to worry about at such a stressful time is finance.

Trauma insurance can provide peace of mind by ensuring you have sufficient money to fund changes in living arrangments, providing an income while you are off work & therefore creating less stress for your family at a difficult time.

Traumatic events are more common than you may think.

Take a look at the igures below :

Work Related Statistics (trauma and income protection)
• 2 of 3 males, 1 of 3 females, or 1 of 2 Australians will suffer a traumatic event during their working life
• 50% of all trauma policies sold are to “white collar” workers
• Most trauma claims occur within 2.5 years of policy commencement
• A person is 3 times more likely to suffer trauma than death before age 65
• There are approximately 117,000 Australians who are “permanently unable to work” due to illness or injury
• 1 in 3 Australians will be off work for more than 3 months during their working life due to illness or injury
• When a person is off work for more than 3 months, then the average duration of claim is usually 4.2 years!
• The most common type of work related injury is industrial deafness, followed closely by back related injuries
• Each year, approximately 1 million Australians experience serious injuries or illness, which either require hospitalisation or prevent them from working
• Half of all serious accidents occur away from work, so workers are not covered by workers compensation
• 20,000 Australian children (minors) are primary care givers for at least one parent due the parent’s sickness or disability
• 1 in 2 Australians will be off work for more than 7 days during their working life due to illness or injury
• Less than 1 in 5 Australians have income protection cover with a benefit period of greater than 2 years (Yes, this includes company sponsored plans!)
• Nearly 10% of Australian full-time workers leave work due to chronic illness
Source: “Year Book Australia 2002 – Health – Special Article – Chronic diseases and risk factors”. by Australian Bureau of Statistics

The Importance of Life Insurance for Key Personnel

Many business owners don’t hesitate to insure physical assets such as motor vehicles, plant and equipment. However they often overlook the importance of insuring themselves (and other key people in the business) in the event of death, disability, illness or injury.

This can be a very risky oversight, as the long term absence or loss of a key person can have a dramatic impact on your clients business.

Our strategy guide can help explain to your client how insurance can provide an injection of cash to:
•protect personal and business assets
•offset a reduction in business revenue
•fund an orderly transfer of business ownership, and
•meet a range of other objectives.

To find out which strategies suit your clients needs and circumstances please call Veronia on 1300 78 55 77

Why insurance is critical when SMSFs borrow to buy property

Many SMSFs that have used a Limited Recourse Borrowing Arrangement (LRBA) to acquire a property have little or no other assets in the fund. So when a member is disabled or dies, there is often not enough liquidity to pay a death or disability benefit and pay out the debt. To further complicate matters: It’s often not possible to pay death or disability benefits as an in specie transfer when the LRBA is still in place; only a limited range of beneficiaries are eligible to receive a death benefit as a pension; and if there are beneficiaries who are available and willing to receive a death benefit pension, the fund would still need enough liquidity to make the pension payments, as well as meet the loan interest. For more information, call David Reed on 8539 7233

Source: Damian Revell, SMSF Weekly 27/8/12

Insurance Changes for SMSF’s

From Cavendish SMSF Administration (14 August 2012), the SIS Act has now been changed to require, for the 2012-2013 financial year and beyond, that:

Trustees of self managed superannuation funds (SMSFs) consider insurance for their members as part of the fund’s investment strategy;

This does not mean that life insurance must be included in every Fund but it does mean that the Investment strategy should show that the matter has been appropriately considered.

There are specific SMSF life insurance products for trustees that are new and low cost. Call Veronia on 1300 78 55 77 to chat about their suitability for your fund.