Medicare is part of the Australian National Health Insurance and is used to reimburse part of the cost of public hospitals. Private Health Insurance is a private medical insurance that reimburses part of the cost of private hospitals. Both belong to reimbursement-type insurance, which is the expense of the hospital, and cannot provide continuous protection such as income and cash flow for individuals. Life Insurance, also known as Comprehensive Personal Insurance, is a commercial health insurance that can provide you with personal cash flow at critical times, which can be used for income protection, loan repayment, children's education and family living expenses, housing renovation costs, continuous additional rehabilitation costs and other needs. These three types of insurance have their own unique value, complement each other and provide comprehensive protection. Therefore, Comprehensive Personal Insurance commercial health insurance is a necessary part of the family wealth protection plan.

There are many types of insurance in mainland China and Hong Kong, including investment type, dividend type, protection type, pension type, and even universal accounts, etc., which are mixed with elements of protection and investment, and generally have cash value. Australia's insurance generally refers to the protection type, which is an effective tool for family risk management. The demand for investment appreciation can generally be solved by purchasing wealth management products (eg: fixed income funds, equity funds, structured products, etc.).

The Australian life insurance business is a fairly mature, legally protected and highly regulated business by the Prudential Regulation Authority APRA. A previous report by the Financial Services Association of Australia (FSC) showed that in 2019 alone, in Australia's life insurance sector, there were more than 12 billion Australian dollars in claims, or more than 33 million Australian dollars in claims every day. The number of claims of mental health alone is as high as 9,500, and the prime claim amount exceeds 1.24 billion Australian dollars. And these people who get claims are purchased when there is no accident or illness, that is, when they "do not need to pay for claims", so they can only pay for claims "when they need to be paid." You can't buy insurance "when you need a claim".

No one knows which comes first, tomorrow or the accident. Comprehensive coverage insurance products can only be purchased in the absence of sickness and disability. In the event of a risk, compensation can be obtained. This has a lot to do with the insurance buying process. In general, before purchasing insurance, you need to go through the underwriting process, including providing health notices, that is, to truthfully disclose existing risks (such as illness, disability, family medical history, etc.), and the policy will take effect only after the underwriting is approved. . Therefore, if you wait until an illness or accident occurs before considering insurance, it is very likely that it will no longer be insured. In addition, younger means that the same product has lower premiums than older ones, because age is an important factor in setting premiums. The older the age, the higher the risk and the more expensive the premium will be. Therefore, it is necessary to implement insurance as soon as possible. The healthier you are, the easier it is to underwrite and the wider your coverage. The younger you are, the cheaper the premium will be, and the longer the guarantee period.

In general, Australian life insurance is not bound for a number of years and there is no mandatory cost. You can choose the premium you can pay according to your own situation, goals and needs. There are many factors that affect the premium, including: the amount insured, age, gender, premium structure, whether you smoke, whether there are existing health risks, etc. General insurance will have a "validity period", such as "valid until the age of 99". During the validity period, the policyholder can adjust or terminate at any time according to the protection needs of himself and the beneficiary..

Buying insurance with a pension can greatly reduce your cash flow pressure, because you can have coverage without spending money in your own pocket. But before making such a decision, you need to understand the risks of doing so. First of all, doing so will reduce the risk of the pension limit, and there are requirements for the pension limit, generally you need to have at least$6,000Australian Dollars. The money in the pension can be used to buy personal insurance before retirement, including: life insuranceLife, disability insuranceTPD Any Occupation, and income insuranceIncome Protection.

When general employers set up pensions for new employees, there may be default insuranceDefault Cover. However, there are many risks to be considered in this type of default insurance, including:

• Critical illness insurance is not included, because many critical illnesses do not meet pension withdrawal conditions.

• It belongs to the insurance of lenient entry and strict exit. That is to say, before the establishment of insurance, there is no comprehensive health underwriting link."medical underwriting", including smoking, alcoholism, family history, disease or disability history, etc. But when the claim is settled, the insurance company starts to do"medical underwriting", it may lead to the approval of claims taking too long, less claims, or even no claims.

• belongUnitized/Age based cover. As these types of plans approach retirement age, the sum assured will begin to decrease to the point of disappearance. As a result, when you may need insurance most, you may not have enough money. In addition, if there is a choice of a fixed amount of insurance, this type of insurance with lenient entry and strict exit, only"step-wise"SteppedPremiums, that is, annual premiums will increase according to age, and after a few years, may also be forced to cancel due to unbearable high premiums. This is also a risk to consider.

•  Insurance terms are too simplistic: e.g. Permanent and Total DisabilityTPDUsually onlyAny occupation. That is to say, when the insured person is unable to perform his/her job and cannot perform any job occupation through education, training and experienceAny Occupationonly when compensation can be obtained. Example: Surgeon, handicapped and disabled, can no longer do his job, but can still go to university to be a teacher, and under this definition, no compensation can be obtained.

In fact, in addition to this default"Wide in and strict out"insurance, pension can still be purchased"Strict entry and lenient exit"'s insurance. I call this type of insurance"Comprehensive personal commercial insurance", called in English“comprehensive personal insurance”, can solve the above problems.

Hippo Wealth is an Australian one-stop insurance and wealth management selection platform. It has strategic cooperation with Australia's top insurance companies, and can provide you with full reference insurance wealth management advice and product details, giving you the right to know and the right to choose, and customize your own insurance products. ! because  Purchasing comprehensive personal business insurance is an important decision for family finance, so you need to carefully consider your goals, needs and financial situation before making a decision.

Identity restrictions:

Under normal circumstances, as long as you are an Australian PR, a citizen, or a person who is applying for PR, and the person must be in Australia, you can apply for Australian comprehensive personal commercial insurance.

Product Restrictions:

Applicants must be within the age range of valid coverage in the Product Disclosure Statement of your chosen insurance product before you can begin submitting applications for health and financial underwriting.

First of all, the person who needs insurance most in a family is the one who contributes the most to the family's economy, that is, the one who makes the most money. Because if he has an accident or illness, it will greatly reduce the overall income level and quality of life of the family. Simply put, it is to put a "bumper" on the "pillar" of the home. If there is a problem with the top beam and column, the house will not collapse. 

Second, partners need protection, whether they work or not. This protection is mainly to hedge against the risk of loss of the main source of income. That is to say, in the event of an accident with the "other half" who contributes less, the mainstay of the family is likely to change from a full-time job to a part-time job, or even resign to take care of the family, which will also affect the overall family income.

Finally, there are children. Generally, when adults purchase insurance, there will be an option for children's insurance. Generally, children's insurance can be purchased from the age of two, but must be with the parents until the child reaches adulthood. Some child insurance premiums can start at 10 Australian dollars per year. Although children do not contribute much to the family economy, the same concept, child care is also to hedge against the impact of adults in the family due to accidents and diseases of their children, resulting in potential loss of the family's main source of income. 

The insurance formula of hippo wealth is: adults first, children later. Security first, finance later.

Which product to buy depends entirely on your coverage needs. Each product has its own unique terms that address corresponding protection needs. Hippo Wealth summarizes several common types of personal insurance products in Australia for your reference, and allows you to customize the family protection plan you want:

• life insurance: When the insured becomes terminally ill or becomes an angel, the beneficiary will receive a lump sum payment based on the sum assured.

• TPD Total and Permanent Disability Insurance: If the insured does not become an angel, but becomes a TPD due to an accident, and may never be able to work, the insured will receive a claim and financial help.

• Critical Illness Critical Illness Insurance: If the insured suffers from a major illness, such as cancer, heart attack, stroke, etc., the insured will receive a claim and receive financial assistance.

• Income protection income insurance: If the insured is unable to go to work due to illness or injury, the insured can still receive income, some as high as 70% of their own income. Unlike the first three, income insurance usually has a waiting period and a benefit period, and income insurance premiums under the personal name are generally tax-refundable.

• Severity based cover is also called three-in-one insurance , this type of insurance combines the three conditions of traditional life/disability/critical illness, covering a wider range, up to 169 health conditions, and can be classified according to the severity of health events (mild, moderate, severe, etc. ) multiple claims provide multiple protections.

The top large insurance companies in Australia basically have these types of insurance products, each with its own product characteristics, suitable for families and individuals with different protection needs.

Contact Hippo Fortune to introduce you the advantages and disadvantages of each product in detail, and let you customize your own protection plan!