professional indemnity australia

broker login    |   affiliate login

 
     
  professional indemnity, pi insurance rates, pi insurance quotes, compare pi insurance, cheap pi insurance  
 

    | Home    |    Quick Quotes    |    Free Download    |   Calculators    |   About    |   Contact    |   Privacy    |   Links    |   Site Map   |

 
 
   
Knowledgebase
Insurance:
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.

Quick Links
  • Professional Indemnity
  • Pi Insurance Rates
  • Pi Insurance Quotes
  • Compare Pi Insurance
  • Cheap Pi Insurance
  •  
    Insurance News

    Insurers Bet Big on AI for Streamlining Claim Resolutions Insurers Bet Big on AI for Streamlining Claim Resolutions
    28 Mar 2024: .Paige Estritori

    Australia's insurance sector is witnessing a transformative embrace of artificial intelligence (AI), with a sweeping 90% leaning on, or on the cusp of adopting, chatbots and advanced AI to enhance claim handling, as noted in Gallagher Bassett's yearly analysis. This heightened integration reflects the sector's aim to bolster operational speed and efficacy, with a remarkable 98% of insurers predicting immense benefits from such advancements. - read more
    Spike in Weather-Related Insurance Claims During Summer Revealed Spike in Weather-Related Insurance Claims During Summer Revealed
    27 Mar 2024: .Paige Estritori

    Over the recent summer period, NRMA Insurance reported an influx of claims linked to severe weather, with a record not seen since the autumnal months of 2022. An overwhelming number of these, about 85%, have been ascribed to weather disturbances such as storms and hail, per the updated Wild Weather Tracker statistics. - read more
    Federal Court Upholds Insurer's Policy Update Clause Federal Court Upholds Insurer's Policy Update Clause
    26 Mar 2024: .Paige Estritori

    The Federal Court has provided a green light to Auto & General’s home and contents insurance policy terms, confirming the necessity for policyholders to inform the insurer about significant changes affecting their coverage. The company emerged victorious in a legal scrutiny instigated by regulatory body ASIC over the disputed clauses. - read more
    Survey Reveals Time Crunch for Brokers Facing Compliance Hurdles Survey Reveals Time Crunch for Brokers Facing Compliance Hurdles
    25 Mar 2024: .Paige Estritori

    Steeped in administrative duties, brokers are dedicating over three hours daily to data processing tasks, finds a survey issued by an insurance software company. Further intensifying their plight, nearly one-fifth have reported growing complications and time expenditure in compliance adherence, underlining a pressing industry conundrum. - read more
    Revolutionizing Carbon Trading with Novel Insurance Offering Revolutionizing Carbon Trading with Novel Insurance Offering
    24 Mar 2024: .Paige Estritori

    In an innovative move within the environmental finance sector, CFC has introduced a cutting-edge insurance product specifically targeting the burgeoning carbon credit market. This pioneering Carbon Delivery Insurance is designed to mitigate the risks associated with non-delivery of carbon credits, reinforcing market confidence and integrity. - read more
     
    Business Insurance Articles

    The Growing Importance of Cyber Insurance in Protecting Professional Practices The Growing Importance of Cyber Insurance in Protecting Professional Practices
    The professional services industry has undergone a significant transformation in recent years, largely due to the integration of digital technology into everyday business operations. From cloud computing to mobile applications, the digital landscape for professional practices has expanded, offering new avenues of efficiency and connectivity. - read more
    The Essential Guide to Professional Indemnity Insurance for Australian Consultants The Essential Guide to Professional Indemnity Insurance for Australian Consultants
    If you're an Australian consultant, you understand that your advice is a valuable commodity. But with that value comes responsibility, and a level of risk that you could be held liable if your guidance results in financial loss to a client. This is where professional indemnity insurance comes into play, serving as a vital shield, providing protection and peace of mind for both you and your clients. - read more
    Expert Tips for Comparing and Buying the Right Professional Indemnity Insurance Expert Tips for Comparing and Buying the Right Professional Indemnity Insurance
    Professional indemnity insurance is an essential safeguard for practitioners and businesses that provide expert advice or services. This type of insurance helps to protect professionals against legal costs and claims for damages from an act, omission, or breach of professional duty in the course of their work. For Australian professionals, where litigation is increasingly common, it's a pivotal component of risk management. - read more
    Professional Indemnity Insurance: How Much Coverage Do You Really Need? Professional Indemnity Insurance: How Much Coverage Do You Really Need?
    Professional Indemnity Insurance (PII) remains one of the keystones of risk management for professionals across Australia. Yet, misconceptions and lack of awareness can lead to inadequate coverage, leaving individuals and businesses vulnerable in a litigious environment. - read more
    Cyber Liability and Indemnity: Mitigating Risk for IT Professionals Cyber Liability and Indemnity: Mitigating Risk for IT Professionals
    In an era dominated by digital innovation, understanding the crossroads of cybersecurity and indemnity insurance is more critical than ever for IT professionals. As cyber threats evolve with increasing sophistication, the concept of cyber liability has come into sharp focus, pinpointing the potential legal and financial risks associated with data breaches and cyber-attacks that professionals in the information technology sector may face. - read more

     

     
    Professional Indemnity Australia :: Articles
    SHARE

    Share this article!

    Life Insurance: How much is enough?

    Life Insurance: How much is enough?

    When considering life insurance, you're planning and preparing for an event that most of us would rather not think about.
    But life insurance represents a critical step in managing your personal finances and ensuring your family's well-being.

    The Two Approaches to Setting Life Insurance Policy Amounts

    You can use one of two approaches to estimate how much life insurance you should buy: the needs approach or the replacement-income approach.
    Using the needs approach, you calculate the amount of life insurance necessary to cover your family's financial needs if you die.
    Using the replacement-income approach, you calculate the amount of life insurance you need to equal the income your family will lose. Let's look briefly at each approach.

    You need how much?

    Insuring your most valuable asset
    While many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.
    Using the needs approach, you add up the amounts that represent all the needs your family will have after your death, including funeral and burial costs, uninsured medical expenses, and estate taxes.
    However, your family depends on you to pay for other needs, such as your child's college tuition, business or personal debts, and food and housing expenses over time.
    The needs approach is somewhat limiting.
    The task of identifying and tallying family needs is difficult, and separating the true needs of your family from what you want for them is often impossible.

    Replacing Income

    Using the replacement-income approach for estimating life insurance requirements, you calculate the life insurance proceeds that would replace your earnings over a specified number of years after your death.
    Life insurance companies sometimes approximate your replacement income at four or five times your annual income.
    A more precise estimation considers the actual amount your family members need annually, the number of years for which they will need this amount, and the interest rate your family will earn on the life insurance proceeds, as well as inflation over the years during which your family draws on the life insurance proceeds.

    Note:

    Do remember, as you quantify the income you want to replace, that Social Security provides generous survivors benefits if you've qualified.

    Calculating Replacement-Income Amounts with Excel

    If you've got access to a computer running Microsoft Excel, the popular spreadsheet program, you can use your computer to calculate the amount of insurance you need to replace a specified number of years of income.
    Suppose, for example, that you want to buy enough life insurance to replace the income from a $50,000-a-year job for 15 years.
    If you figure your family will earn 5% on the life insurance proceeds should the worst case scenario occur, you enter the following formula into a cell in an Excel workbook to calculate the replacement income life insurance amount:
    =-PV(5%,15,50000)
    Excel returns the formula result 518,982.90 indicating that you would need roughly $520,000 of life insurance, invested at 5%, to payout $50,000 a year for 15 years.

    Two Calculation Tips

    If you want to factor in inflation because you're trying to replace income over a long period of time, you should use a real rate of return rather a regular, or nominal, rate of return.
    To calculate a real rate of return, subtract the inflation rate from the interest rate in the formula.
    For example, if you expect 2% inflation, you could replace the formula shown earlier with this formula:
    =-PV(5%-2%,15,50000)
    Here's a final calculation tip:
    You probably want to round up your number. For example, if the formula provided earlier returns the value 518982.90, you might want to round up this value to $600,000. Or $750,000.

    Editor's Note:

    Financial Services Online provides a free online calculator that uses a combination of replacing income and needs approach in helping to determine the amount of life insurance cover you may need.

    Published:Sunday, 1st Aug 2021
    Author: Paige Estritori

    Share this article:

    Truck Loans
    If you are in the market for a commercial vehicle, then we're in the market to help you arrange the money. Our truck loan & leasing service is backed by a national panel of truck loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation … and help you through the approval and settlement process. No charge to you … and no obligation to proceed with any recommendations offered.
    Business Insurance Renewal Due?
    If you are in the process of renewing your business, public liability or professional indemnity insurance ... whether it be a professional, trade, manufacturing or retail business ... we can show you a quick way through the maze of offers and options available on the market. Our Australia-wide broker panel will ensure that you get the best cover for your specific needs - and at the right price to suit your budget.

     
    Need a Quick Professional Indemnity Insurance Quote?
     
       
     

    At Professional Indemnity Australia, we understand that you have more productive things to do with your time than researching professional indemnity insurance rates and options.

    So we propose to help do it for you. No charge, no obligation.

    Simply complete our short form for access to the best professional indemnity insurance quotes and advice from a comprehensive selection of Australia's leading and best known professional indemnity experts.

       

    Quick Links: | Professional Indemnity | Pi Insurance Rates | Pi Insurance Quotes | Compare Pi Insurance | Cheap Pi Insurance

    powered by
    Financial Services Online

     

     


    Home   |   Calculators   |   About   |   Quotes   |  Contact   |  Privacy   |   Brokers   |  Affiliates   |  Download   |  Links   |   Site Map

     
         
     

     
         

    Copyright Clark Family Pty Ltd A.C.N. 010 281 008 - all rights reserved