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Income Protection Considerations for Growing Families!

8 August 2011 Sören Zschoche 23 Comments Entertainment, General

There’s a lot to think about as your family grows. Will our house be a safe and nurturing environment for the kids? Which parent will stop working? How will your kids be educated and disciplined? The questions seem to be never-ending! Today we deconstruct one niche, but common, issue for Australian families – how should my income protection insurance policy change as my family grows?

Should the Non-Working Spouse Be Insured?
Many companies now offer income protection policies that pay a benefit if a non-working spouse is unable to fulfil their household duties. This recognises that although there is no monetary income on which to base benefits, this partner makes a contribution to the house which could only be replaced with money if they were injured. Homemaker income protection can help pay for cleaning, washing and cooking services, and more.

However, remember that this type of income protection may not be tax deductible, as a standard policy would be.

Should You Choose a Shorter Waiting Period?
Having a family usually means more bills that are more urgent. You don’t have the same flexibility in your expenses that you do as a childless family, and so you may want to think about choosing a shorter waiting period so that benefits can be paid sooner after you become disabled.

Is Your Cover Guaranteed?
If you’re in relatively good health and with a growing family, now is the time to check that your income protection cover is guaranteed. Your policy document should have a statement saying something like “We guarantee to provide cover for as long as you continue to pay your premiums as and when due, regardless of changes in your health or circumstance”.

Are Pregnancy Complications Covered?
Growing your family is usually a long term project! Even if this pregnancy is uncomplicated, you should check whether your income protection plan pays out for complications of pregnancy that would prevent you from working. This may be useful if you plan for your new bundle to have siblings in the future.

Are You Getting the Best Deal?
There are plenty of informative and neutral price comparison sites for income protection insurance, which take the legwork out of ensuring you
have the best income protection deal.

Utilise these comparison sites, and you may have a little extra cash to spend on nappies and toys!

Welcome to

3 February 2008 Michael Szumielewski No Comment General

Welcome to! We just started our brand new financial blog, so do not expect too much too soon. Here is a brief introduction what this blog is about and what we want it to be. You are welcome to send us feedback, so we can improve this site step by step.

The blog is a blog about the most important events and happenings of all parts of the financial world. Our target is a free discussion with our readers about world financial news, companies and everything which stands in direct contact to the international financial world. We will also write about successful investing, but we will not recommend you buying certain stocks or certain investment products. What we will do is giving you our opinions on certain situations and companies – information we think that are more valuable for our readers than recommendations. We also strongly believe in value investing as the most successful form of investing, so we will also write and explain a lot about this topic.

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The will be written by Michael Szumielewski and Sören Zschoche, both students from Germany at the Munich University of Applied Sciences where we study business informatics. Aside of informatics we are highly interested in investing and the international financial world. We are no finance pros, but we have some experience in the finance sector and are very motivated to improve our skills.

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