I'm just saying ... (aka 'Of Life and Insurance')

Disclaimer: This is by no means a financial advise. This is just me talking to the wall ...

And so I came out of my visit from my doctor feeling quite relieved.  The scary word that was dangled about was most assuredly ruled out.  I am generally OK.  But this is not about my condition.  This is about the people I most care about in my life.  It is about protecting them.  

A couple of years ago, soon after we purchased our new home, the hubby and I decided to get serious with our insurance.  In Australia, anyone who is employed gets automatic insurance within their superannuation.  But the sum insured is, let's be honest, quite paltry.  A financial adviser gave us free advise - we should get cover that will pay off the mortgage and some.

1) Life Insurance and Total Permanent Disability, uncovered

The rule of thumb in determining one's insurance is the size of one's mortgage times two.  The magic figure for us is $1M.  Yes, make your spouse a millionaire!  And why not?  Let me explain why.  The money must be enough to pay off your mortgage, and give your spouse the ability to choose to stop working for as long as required to grieve, support the children, and deal with your departure.  Imagine how life changing that will be!  I can't even begin to imagine the pain and loneliness ...

But the premium payments for a $1M insurance is hefty, I hear you groan. Well, I have good news for you.  You don't even get to see your premium payments if you take insurance within your superannuation!  Yes, all you have to do is increase your cover within your super. Not only will you get a cheaper premium (your employer will normally have pre-arranged volume discounts), you never even get to see your repayments (fees) as these are all deducted from the cash component of your super assets.  Hah, you even pay with your before tax income (the 9% employer guarantee is taxed less). Oh, you ask, wouldn't that reduce my super asset base?  Of course it will. But let's be honest. Or let me be honest. My super balance is quite pathetic. Not only did I start my working life in Australia very late (I lost 10 years of my working life, having migrated when I was already 30 years old), but the global financial crisis almost halved whatever small amount I have. Truthfully, I do not look at my super as my nest egg. After all, the government can change super laws any time. You will be better off using other investing vehicles such as shares and property. (Which is by the way, another blog.)

So, my life insurance is now $1M within my superannuation.  My insurance provider only asked me to provide a more exhaustive medical report to assure them that I do not fall off the perch anytime soon.  Next important is Total and Permanent Disability.  TPD means that you get very sick, and your disability is permanent that it is unlikely that you will be able to go back to work.  So insure for a similar amount - $1M.  After all, your spouse could become your full-time carer for a certain period.  You need to have income flowing in.

Life and TPD ... increasing your cover is easy but requires some documentation and follow-up.  If you care, you will breeze through these ...

2) Income Protection Insurance

This type of protection is for temporary sickness. It does not cover the event of losing one's job unfortunately. The product disclosures are daunting. Nevertheless, read it. Place it on your bedside table ... there's no excuse for negligence! Once again, get income protection within super. Premiums are lower and you don't contribute a cent of your after-tax income.

There are waiting periods of 30, 60 and 90 days. If you have some savings, then you may opt for either 60 or 90 days.  Insurance payment periods are generally 2 years, 5 years or to age 65. If you can afford it, aim for 5 years or to age 65.  I don't believe there is such a thing as too much insurance.

So there you are, dear friends. I hope I have empowered you to act NOW. Or it will be too late ...

One important postscript. You need to update your superannuation beneficiaries every three years.  A lot of people either miss this or are not aware that beneficiaries become nil until you advise your super provider otherwise every three years!  Do yourself a favour, login to your super account and make sure that your list of beneficiaries is up to date and listed correctly!

Next blog ... Making a will is essential!

Thinking in Pictures

My beautiful boy ...

Fortress Around Your Heart

Click here to listen ...

Under the ruins of a walled city
Crumbling towers and beams of yellow light
No flags of truce, no cries of pity
The siege guns had been pounding all through the night
It took a day to build the city
We walked through its streets in the afternoon
As I returned across the lands I'd known
I recognized the fields where I'd once played
I had to stop in my tracks for fear
Of walking on the mines I'd laid

And if I built this fortress around your heart
Encircled you in trenches and barbed wire
Then let me build a bridge
For I cannot fill the chasm
And let me set the battlements on fire

Then I went off to fight some battle
That I'd invented inside my head
Away so long for years and years
You probably thought or even wished that I was dead
While the armies are all sleeping
Beneath the tattered flag we'd made
I had to stop in my track for fear
Of walking on the mines I'd laid

- Sting

Roadtrip 2010: Melbourne and Canberra in 5 days

We did it again! Another holiday that was packed and exhausting. I got sick when we came home.

This road trip was all about experiencing the annual Melbourne leg of the Formula One Grand Prix. The hubby is a huge fan. His brother who is visiting from the Philippines turned out to be a follower too. And so we loaded our bags and ourselves into the Kluger - myself, the hubby, the sister-in-law, the brother-in-law and my two boys. (Sidebar: You cannot have six passengers in a Toyota Kluger and expect enough room for an Esky. You will have to leave some non-essentials such as camp chairs behind.)

Anatomy of a Fast-paced Holiday

Day 1: Friday on the move
Spent 10 hours on the road with a 5:30 am start. Lots of toilet and food stops along the way. We missed the lunch stop at Albury, the border town between New South Wales and Victoria. Fortunately, I packed peanut butter sandwiches. We found a picnic spot at a sleepy town called Chiltern (see photo above).

We arrived in Melbourne at 5:30 pm. I immediately loved the city with its art-filled laneways and quaint little shops and cafes. Our hotel, Accor's Mercure, was in the CBD. Restaurants dotted the streets and all amenities were a stone's throw away. Adobo, our packed comfort food, always tastes good when one is too beat to think where or what to eat!

Day 2: Saturday at Albert Park
Excitement mounted when we arrived at the Grand Prix gate. The hubby uncharacteristically blurted out, "I am so excited!"  The sound of Formula One cars gunning around the circuit during practice proved too much for Migo's sensitive ears. We decided to watch qualifying from the big screen instead.

Below are sight and sounds of an F1 experience: girls, RAAF Roulettes and lots of fast cars!

Day 3: Sunday at Albert Park
The cars went by in a blur and the engines were definitely deafening. Ear plugs are a must! The entire place was in a frenzy, the atmosphere electric. You don't really see or hear anything during the race, except for the "wheeee" of the cars. Watching the race on TV with the replays is more comfortable and entertaining.  However, live action is so much more gratifying or so I rationalise.

Day 4: The drive to Canberra
A non-event. We stayed at Best Western Parklands in a three bedroom unit.

Day 5: A side trip to Paris
And for an experience diametrically opposite the Grand Prix, we stopped by the National Art Gallery in Canberra to see Masterpieces from Paris. A once in a lifetime event that brought paintings from the Musee D'Orsay to our neck of the woods.

The snaking queue in heavy downpour. These folks are utterly adamant!



Oh did i mention that we waited for 1.5 hours to get inside the exhibition rooms?  Getting wet in the rain was a small price to pay. That makes us as stubborn as the rest of 'em!

I must admit my heart skipped a beat when I saw Vincent van Gogh's 'Starry Night' masterpiece. I heard Don McLean's song "Vincent" in my head ...  "Starry starry night. Paint your palette blue and gray ..."

You must click here for a complete audio description of this joyous painting!

Tripping: The best violin riff in a pop rock song ... Enjoy!

Bitter Sweet Symphony, by The Verve

The Joys of Solitude ... it's not for everyone.

I share a magazine article lifted from SMH's Spectrum.  It is about solitude.  I love this article because it describes my husband's nature so aptly!  I can see clearly our future, our retirement.  He reading a book, and I reading my book at both ends of a comfortable couch.  Our silences will not be pregnant; they will not be heavy.  Our silences will be comfortable and harmonious ... Oh wait, there will be beautiful music of Vivaldi's violin strings playing in the background.

I can't wait!

One's company, two's a crowd

One's company, two's a crowd Author: Phil Daoust Date: 20/02/2010 Words: 2418 Source: SMH         Publication: Sydney Morning Herald Section: Spectrum Page: 12

There's no idle chatter, no white noise and no need to get out of your pyjamas. Phil Daoust extols the virtues of seclusion. YOU don't get many casual visitors where I live. Home is down a dirt track, three kilometres from the nearest village. The neighbours are five minutes' walk away, and when the woods are in leaf you can't see another building. By day you may hear a chainsaw in the distance; by night only the deer barking. I'm on my own here, if you don't count the cat, and right now it's a week since I saw another human. But it's a beautiful spot, in a lovely bit of France, and every now and again a rambler will find his way to it. If I'm outside, and don't have time to hide, his first remark will usually be: "This is a little bit of heaven." I'll feel a little bashful, as if I somehow shaped this world with my own talented hands, and then he'll say: "Mind you, I could never live here."

Rockwiz Duet: Hot "Slave to Love" cover ...

Watch Canadian siren Martha Wainwright sashay from side to side, how-low-can-you-go and up again. Smooth and sultry in her cute yellow number and white stockings! Aussie Dan Kelly almost forgot his lyrics!

'Can you help me, can you help me' .... 'Over me' ...