Insurance understanding the basics

Understanding the basics

Getting the protection you need for yourself, your family and your assets can be a bit overwhelming. But it doesn't have to be. Here's some information to help you make sure all your bases are covered.

Understanding the basics

Getting the protection you need for yourself, your family and your assets can be a bit overwhelming. But it doesn't have to be. Here's some information to help you make sure all your bases are covered.

Why do I need insurance?

It doesn’t matter how careful you are, there are things in life you can’t control. And even the smartest plans can come unstuck if you don’t give yourself adequate protection.

Whether you’re looking to protect yourself, your family, or your assets, insurance can give you the second chance you need to get on with life – without having to start all over again.

What types of insurance are available?

Most insurance companies classify their products as either ‘general’ insurance or ‘life’ insurance.

General insurance

Many of us may already have some kind of general insurance, particularly if we own a car. General insurance provides protection for loss of your assets. This includes things like your home and its contents, your car, and even travel insurance.

General insurance is a great way to protect your property against the unexpected. OnePath offers a range of general insurances to safeguard everything you hold dear.

Life insurance

Life insurance protects you and your family from the financial consequences of sickness and injury. There are a range of different kinds of life insurance products, but we’ve made things easier by grouping them into three categories:

  • Life insurance to protect the financial contribution you make to your family.
  • Income protection to replace your income, living expenses, and business expenses.
  • Trauma Insurance to protect against the financial consequences of trauma and disability.

How do I buy insurance from OnePath?

Because we all shop differently, OnePath provides solutions that cater to all kinds of lifestyles. Here’s a brief explanation of the ways you can purchase insurance.

1. Visit a financial adviser

A financial adviser can help you choose the right types of life insurance cover, and work out how much of each you need. They can also help you structure your life insurance in a way that suits your circumstances and budget.

2. Top up your insurance through super

Many of us already have some life insurance within our superannuation fund. If you have life insurance within your fund, it will most likely be shown somewhere on your annual statement. To increase the amount of cover you have, contact your superannuation fund directly, speak to a financial adviser.

How much does insurance cost?

The cost of insurance is called the ‘premium’. It is calculated based on the amount of cover you want, and the risks associated with the asset you want to cover. You can usually pay this premium monthly, half yearly or annually.

Some factors can impact the cost of the premium – like the age of the asset you wish to protect, or in the case of life insurance, whether you are a smoker or non-smoker. You can also receive discounts for having multiple policies with OnePath, or for maintaining your insurance for a specified period

What happens if I need to make a claim?

There’s a perception insurance companies don’t pay up when the time comes for you to make a claim.

At OnePath, we stand by our commitment to deliver on our promise. In 2017 we paid over $930 million in claims. But don't just take our word for it. Take a look at the claims we paid in 2017 (468kb PDF).

Understanding the business basics

Insurance is important for everyone. But when you’ve got a business, a family, and employees relying on you, it’s even more crucial to get the right financial protection.

What types of insurance are there for business owners?

When you’re a business owner, it can be hard to separate your personal finances from your business. And there’s no doubt one can have a significant impact on the other. So make sure you've got all your bases covered.

You’ve got a life of your own to protect, and no doubt there are people around you who would be impacted if something happened to you.

Life insurance can help you protect your family, your income, and your debts. This may include cover for death, total and permanent disability, and trauma conditions like cancer and heart attack. Click here to find out more.  There are also a number of ways you can use life insurance to help you secure the future of your business. See Tips, tools and strategies for more.

What insurances are available for my employees?

Insurance can be a valuable benefit you provide your employees – helping you attract and retain the best people. It can be provided within your employer super fund, or as a stand-alone benefit outside super.

Generally speaking, there are three types of ‘group insurance’ available:

  • Group Life cover
  • Group Salary Continuance cover
  • Group TPD cover

What insurances do I have to provide my employees?

If you contribute to a default super fund for your employees, you are generally required to provide a minimum level of death cover. To meet these requirements: the premium paid to the fund must be at least $0.50 per week (or equivalent) for members under age 56, or the fund must provide the minimum age-based level of cover as set out in the table below;

Age of member (years) Minimum level of death cover required

0-19

Nil

20-34

$50,000

35-39

$35,000

40-44

$20,000

45-49

$14,000

50-55

$7,000

56 +

Nil

How can a financial adviser help me?

A financial adviser can help you design an insurance plan that suits the needs of your family, your business, and your employees.

They can also help you implement a number of strategies to make your insurance more cost-effective.

For more information on the financial advice process, or to find an adviser in your area, click here.