Hello everyone,

 

I hope you have all been well as we move through spring to warmer weather!

 

If you are reading this report for the first time it means you have requested our services through a mutual client or at one of the many events that myself and Sacha Loutkovsky speak at around Australia.

 

I know you have not heard from us in a while, we have been having difficulties reconciling our new email system but it has finally been rectified and we’re back to being able to send you our wonderful Igor Report! We're going back to sending quarterly newsletters but have a new system in place to be in regular contact with you when you have policy upgrades, renewals, important information about your cover and offers on your policies.

 

So what is new with us? We have been working hard through the downturn that is hitting every industry. It is a difficult time and I know everyone wants to cut their spending back but to people considering cutting back their insurance cover to save some cash ask yourselves this: what would be the long-term cost to me (and my family) if something happened and I didn’t have my insurance cover?

 

It has been a busy time for claims with clients receiving claims proceeds for prostate cancer, a death claim for a client who passed away as a result of breast cancer and three total and permanent disability (TPD) claims for major depression. If you are not sure what TPD cover is, click here to find out more.

 

In this Igor Report we will be covering:

 

-          Do you have a current and valid will?

-          Do you have enough funds in superannuation to look after yourself and your family?

-          The recommended age for Prostate Cancer testing has changed

-          The usual funny

 

 

Do you have a current and valid will?

 

The importance of a will can never be overstated.

 

We heard about a case recently where the husband had passed away, leaving a wife and two young children with no will or binding death benefit nomination on the superannuation assets. As there were no clearly defined instructions, it meant the superannuation assets were left to the Trustees to decide on the outcome of the funds.

 

This can mean that instead of receiving a death benefit pension, the likely outcome is the funds are paid to the estate as a lump sum cash payment. If the surviving partner were over age 65 and not working, then the assets cannot be re-invested into superannuation and are effectively invested in the person’s own name and future earnings are taxed at the person’s marginal tax rate. In this particular case, the surviving partner was below age 50 and could invest the money into the tax-effective superannuation environment. Further complications could have arisen if the deceased partner had a previous marriage or children.

 

Therefore when circumstances change, for example the birth of a child or marriage/divorce, it is important to update your will and ensure that it is relevant and appropriate. By reviewing your will following a trigger event you can ensure assets are distributed according to your wishes and passed to the right family members. A death of a family member is an unfortunate and sad situation and without the existence of a current and valid will may mean further unnecessary grief.

 

Thank you to Aon Hewitt Financial Advice and their Strategy Service team for the information contained in that article.

 

 

Question: Do you have enough funds in superannuation RIGHT NOW to make sure that you can provide for yourself (and your family) in the event that you become totally and permanently disabled?

 

If you don’t have enough in superannuation then the answer is to invest in a Total and Permanent Disability insurance policy. It will provide the necessary funds required if you become totally and permanently disabled by creating a lump sum, which when invested, creates an income stream and if linked through a super fund will also enjoy tax relief.

 

It has long been a tested theory that you require approximately 60-65% of after tax income to support yourself in retirement. That figure may need to increase especially if retirement comes early due to a permanent disability and you still have dependents relying on your ability to provide income. In this context a permanent disability means that you are unlikely to ever work again and could be events such as quadriplegia, loss of limbs, severe depression, mental illness, cancer, stroke, loss of function etc.

 

Lets look at it this way, if your requirement is to produce $100,000 to continue your current lifestyle requirements including paying mortgages etc, it may require a lump sum TPD policy of $1,700,000 invested at 6% to generate an income of $102,000 if you do not have any other income-producing assets.

 

Simply plug in your income requirement and multiply it by 100/6.

 

Of course your continuing need for the cover will decrease over time as your personal income earning assets grow, but given the performance of the assets under management by most of the financial sector in the past 3-4 years a TPD policy might be your only hope.

 

Do not hesitate to call us on 02 9633 5530 if you wish to discuss your options.

 

 

Did you know that the recommended age for Prostate Cancer testing has dropped to age 40?

 

It’s Movember everyone – I hope all the males out there are growing some wonderful moustaches in support of men’s health, specifically Prostate Cancer. We process prostate claims for our clients every year, and every year we process more and more.

 

In June of this year the Urological Society of Australia and New Zealand announced that “The level of risk a man faces of dying from prostate cancer can be predicted from a single prostate specific antigen (PSA) test taken before 50 years of age” according to a study recently presented at the American Urological Association (AUA) Annual Meeting in Washington.

 

The study, conducted on a large population of Swedish men, shows that the initial PSA levels of men aged 44 to 50 years of age can predict the risk of a death from prostate cancer up to 30 years in advance.

 

But back to basics - What is prostate cancer? The prostate is a gland found in males that plays an important role in urinary and reproductive processes. When a man has prostate cancer it means he has an abnormal and typically harmful (or malignant) growth of cells of his prostate gland. The prostate contains several different cell types, including specialised gland cells that produce the prostatic fluid found in semen.

 

What is the impact on Australians? The burden of prostate cancer on Australian men and wider society is certainly significant. According to Cancer Council Australia ¹, it’s the second most-common type of cancer diagnosed in Aussie men and in 2010 they projected 19,000 new cases would arise that year alone.

 

That estimate is consistent with the 17,444 prostate cancer cases reported in 2006, as described recently by the Australian Institute of Health and Welfare (AIHW) ². The AIHW had also reported that in 2007, prostate cancer was a leading cause of death in 2,938 Australian men, and a contributing cause of a further 4,390 deaths that year ².

 

Dr Stephen Ruthven, President of the Urological Society of Australia and New Zealand has stated that “The evidence now appears overwhelming that men in their 40’s need to speak with their GPs about the merits of undertaking an early PSA test rather than waiting. For most this simple blood test and examination will provide peace of mind. For others it will result in closer surveillance and much greater opportunity for early detection and successful treatment.”

 

None of us here at Loutkovsky Insurance are doctors but in the interests of male health get a PSA test done sooner rather than later, or urge your husbands/boyfriends/fathers/uncles etc to do the same.

 

References:

http://www.usanz.org.au/uploads/29168/ufiles/110602EarlyTestingMediaRelease.pdf

¹ Cancer Council Australia. 2011. Prostate cancer. Retrieved online 24 August 2011 from http://www.cancer.org.au/Healthprofessionals/PositionStatements/prostatecancer.htm

² Australian Institute of Health and Welfare 2010. Australia’s health 2010. Australia’s health series no. 12. Cat. no. AUS 122. Canberra: AIHW.

 

Thank you to CommInsure for information on the impact of Prostate Cancer on Australian men and their families.

 

 

The Usual Funny

 

If you've ever worked for a boss who reacts before getting the facts and thinking things through, you will love this!

 

Arcelor-Mittal Steel, feeling it was time for a shakeup, hired a new CEO. The new boss was determined to rid the company of all slackers.

 

On a tour of the facilities, the CEO noticed a guy leaning against a wall. The room was full of workers and he wanted to let them know that he meant business.

 

He asked the guy, "How much money do you make a week?”. A little surprised, the young man looked at him and said, "I make $400 a week. Why?"

 

The CEO said, "Wait right here." He walked back to his office, came back in two minutes, and handed the guy $1,600 in cash and said, "Here's four weeks' pay. Now GET OUT and don't come back."

 

Feeling pretty good about himself the CEO looked around the room and asked, "Does anyone want to tell me what that goof-ball did here?"

 

From across the room a voice said, "Pizza delivery guy from Domino's."

 

 

That’s it for this time folks, please take the opportunity to have a look at our website www.loufin.com.au. There is no doubt you will have forgotten most of the things your policies cover and it is a handy tool to educate or re-educate yourself on personal insurance matters and your friendly insurance advisers.

 

And finally, if you like the way we have set up your insurance strategies and the way we conduct our ongoing relationship:

 

Please recommend us to your friends and family!

 

Cheers ‘till next time,

Igor Loutkovsky

 

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PS: Remember, if your circumstances have changed, i.e.: won the lottery, won a wife or husband, found a wife or husband, increased your mortgage, increased your family, reduced your debts: please let us know! Insurance reviews that could save you money or give you stronger coverage are worth the call come claim time!

 

PPS: Have a look at the testimonials section of our website. If you like what we have done for you in the past please send us an email and we will post your testimonial – First name and state of residence only.