Hi everyone and welcome to the Show Me The Perks podcast. This is episode number 20 and I’m your host, Kim Bigg. Today we’re diving into the world of personal insurance in an episode titled Protecting Your Most Valuable Asset. Joining me today is Eddie Bell, Director and Life Risk Specialist from our insurance team at Perks. Eddie brings a wealth of experience helping business owners and professionals navigate risk. Welcome, Eddie.
Eddie Bell:
Thanks, Kim.
Kim Bigg:
Fantastic. So, Eddie has been with Perks for nearly 11 and a half years—congratulations on that milestone! Eddie also has an impressive 33 years of experience in the insurance industry. He specializes in advising clients on key person insurance, total permanent disability (TPD), life insurance, and income protection. With his deep knowledge of the insurance landscape and commitment to client success, Eddie is a trusted partner in an ever-changing market.
Eddie, is there anything else you’d like to add about your career or the industry?
Eddie Bell:
Sure. This part of insurance falls under the financial planning landscape. Typically, financial planners in Australia focus on two areas: investments and insurance. My strong suit has always been insurance, which is why I’ve specialized in this area.
I often explain to clients that insurance is a “necessary grudge purchase.” People know they need it but don’t always get around to it—similar to wills and estate planning. At Perks, we spend a lot of time helping clients build wealth and businesses, but it’s just as important to safeguard those assets against unforeseen events that could undo years of hard work.
Kim Bigg:
For time-poor professionals and business owners, what falls under personal insurance, and why does it matter more than people think?
Eddie Bell:
I like to frame it around key life events rather than individual policies. The three main triggers are:
- Levels of debt
- Number of dependent children
- Significant income
When one or more of these factors are in play, there’s a need for protection. If someone passes away prematurely, suffers a long-term disability, or experiences a major illness, these events can create serious financial problems.
The four main types of personal insurance are:
- Life Insurance – Protects your family’s standard of living if you pass away.
- Total Permanent Disability (TPD) – Covers you if you can never return to work.
- Trauma Insurance – Provides a lump sum for major illnesses like cancer, stroke, or heart attack.
- Income Protection – Replaces a portion of your income if you can’t work due to illness or injury.
Kim Bigg:
What’s the biggest misconception you see among clients?
Eddie Bell:
Two stand out:
- People underestimate how much life insurance they need. It’s not just about clearing the mortgage—it’s about maintaining your family’s lifestyle until they can regain financial stability.
- Many assume their superannuation fund’s default cover is enough. In reality, those policies are often limited and not guaranteed renewable, which can lead to problems at claim time.
Kim Bigg:
Can you share an example where having the right cover made a big difference?
Eddie Bell:
One case involved a medical professional with a young family. He had income protection and other cover in place. After a serious accident, his spouse called me in a panic, worried about how they’d survive financially.
Because we had structured his cover properly, they didn’t have to sell assets, borrow money, or dip into savings. While income protection only covers up to 70–80% of income and is taxable, it gave them breathing room during a very stressful time.
Kim Bigg:
What are the main reasons claims get denied?
Eddie Bell:
The biggest reason is non-disclosure during the application process. Clients must disclose all relevant health and lifestyle details. If you get this right upfront, claims are far less likely to be denied.
Kim Bigg:
For those in their 40s or 50s, when should they review or reduce cover?
Eddie Bell:
Review whenever there’s a major change in debt, income, or dependents. As kids finish school and financial dependence decreases, you can start reducing cover. We call this the “glide path” to self-insurance.
Before reducing cover, I recommend a health check—blood tests, skin checks, heart scans—so you’re not canceling insurance only to discover a health issue later.
Kim Bigg:
What trends are you seeing in personal insurance?
Eddie Bell:
Income protection premiums have risen significantly due to generous contracts and high claim rates. Expect changes to TPD policies, with more severity-based definitions, especially around mental health claims.
Kim Bigg:
Thanks, Eddie, for sharing your insights. To recap:
- Key life events—marriage, buying a home, having kids—should trigger an insurance review.
- Don’t rely solely on default superannuation cover.
- Review regularly and consider reducing cover as circumstances change.
If today’s discussion has raised questions for you, speak to your insurance advisor—or reach out to Perks and Eddie Bell for a review.
Thanks again, Eddie, and Happy New Year to all our listeners!
