She's On The Money - Personal Insurance & Chronic Illness: What’s Included & What’s Changed?

Episode Date: August 25, 2026

Endo. Chronic injury. Mental illness diagnoses. Updates to genetic testing. Let’s talk about it.  This episode comes at a time where the NDIS is being wound back for approx. 241,000 Australians. So, what does this mean if you are experiencing chronic illness, permanent injury or disability? And what financial support is in place to help you sustain a decent quality of life when government services are being pared back? During this Deep Dive, we’ve invited friend of the pod, Phil from Skye Wealth to chat about the impact of chronic illness on our personal insurances. From stigma and stereotyping to the upcoming industry shifts that are happening around mental illness, join Victoria and Phil for an illuminating ep on what your options are in the year of our lord 2026.  CHAT WITH SKYE: Thanks again to our partners over at Skye Wealth for making this episode possible. If you're ready to chat to a professional about your personal insurance, we have a long standing referral partnership with Skye Wealth. Book your consult at https://www.skye.com.au/shesonthemoney  INSURANCE 101: Still grade yourself at about a B+ when it comes to money? Upgrade your knowledge with this playlist on personal insurance at https://open.spotify.com/playlist/1kdVBELk5klU7yzzFblSqe?si=F7bBhVGpShSQmgWf8R4kEQ  LOVE NUMBERS? Here are some stats on the various kinds of claims being paid out across Australia from 2024. Visit insurancewatch.com.au/insurance-claims-statistics.html for more info. New here? Follow us on Instagram (@shesonthemoneyaus) for Q&As, bite-sized advice, daily money inspo... and relatable money memes that just get you.  Acknowledgement of Country By Nartarsha Bamblett (nartarshabamblett.com.au) The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708,  AFSL - 4451289.See omnystudio.com/listener for privacy information.

She's on the money. She's on the money. My name's Natasha Bambler. I'm a proud First Nations woman and I'm here to acknowledge country. Hello beautiful friends. We gather on the lands of the Aboriginal people. We thank, acknowledge and respect the Aboriginal people's land that we're gathering on today. Take pleasure in all the land and respect all that you see.

She's on the Money podcast. Acknowledge is culture, country, community and connections, bringing you the tools, knowledge and resources for you to thrive. Hello, our lovely listeners and welcome to She's on the Money. the podcast where we discuss all of the issues concerning your wealth goals so that you can feel more in control of your financial future. Let me paint you a little picture. You work for a marketing company with a pretty good office and online culture. And while the team isn't mandated to come into the office, you've had to work from home more than usual this year because you've had

some pretty debilitating cramps. But this is, it's not unusual for you because you're pretty sure you have endometriosis, a condition that affects one in seven females and those assigned female at birth. And while you've considered getting an official diagnosis and any necessary treatment, the process often involves surgical intervention, which means more time off work, time off that you aren't sure you can actually afford. In addition to the physical pain, the financial pressure of taking unpaid leave is totally stressing you out, leading to overwhelm and burnout. Unfortunately, this isn't just a hypothetical for many of our listeners, but an uncomfortable reality for many of you in the community who are experiencing chronic and mental illness. On today's deep dive, we're going to

be covering the impact these issues might have on your personal finances and insurances, plus what to consider before chatting to an insurance specialist. I'm Victoria Devine, and joining me today is none other than Phil Thompson, the CEO of SkyWelf. Welcome back, Mr. Phil Thompson. Thanks, Victoria. Thanks for having me. You've got less hair. I do have less hair. I chopped it off. Looking a little, just slightly more professional.

Oh, is that what we're going for? Well, no, but that's what I've been told. Because, like, Sky act professional, but when you meet them, you're like, oh, they're just fun guys. Yeah. And we get that feedback a lot. I always say what we do is incredibly serious, but the way in which we behave doesn't need to be too serious. Absolutely. And I think that that's what makes it so nice.

It doesn't have to be like your dad's financial advisor, right? Like, and I think that that's what people think of. And I just found it so hilarious last time we did content together because it was one of the first times we had a video podcast and I'm so sorry, but the amount of people that replied and they were like, that's Phil? And I was like, yeah, like, he's fun. And they're like, this makes so much more sense as to why you'd have a guy on the show. I'm like, yeah, like, he's actually a fun, really cool dude.

I tell you what, I was a little bit self-conscious thinking, do I sound like a 60-year-old man? No, but I think people just assume when you have a male voice and you have a fair bit of authority in the financial advice space, there's like a stereotype that you probably wear a three-piece suit. Never. And I don't even think, yeah, but you've probably never owned one either. No. What do you get married in? Did you get married in a three-piece suit? There you go, yeah.

Yeah, because you're like, I'm never going to wear this again. Exactly. All right. Let's do a little general advice disclaimer because we are talking financial advice today. Anything Phil says or does can and will be held against a wrong disclaimer. Yeah, exactly. Anything that we talk about is obviously general in nature and doesn't take your personal circumstances into account. But I think that people might find this oddly specific.

Yes, I'm a financial advisor. We've got our own A for Sell, but I'm not giving personal advice on this podcast. No, and we can't give personal advice because we don't want to go to jail. And the ramifications of that are actually five years in jail and a million dollars of fines. and like both of us, can't afford that. No. Phil, this is a topic that my community and I have been very eager to chat about for such a long time. And it's not just because of endo.

We've seen a bunch of our community members share stories about their experiences with chronic and mental illness and the challenges that they've had to face and navigate when it comes to getting insurance and accessing the support that they need and the support that they deserve. And by the end of this episode, we would love for them to have an updated understanding of what is and isn't covered by default super, plus some recent changes to insurance and mental health claims. We're going to go to a very quick break, though, and then when we get back, we're going to dive straight in. All right, Phil, I know that at the start of this episode, I shared a little hypothetical that

was completely unrelatable to you. But as the stats nerd that I am, I wanted to bring a few more numbers to the table just to explain to how topical this conversation is for our listeners and for our community and something that I know you've seen time and time again in Sky. According to the Australian Institute of Health and Welfare, around one in five Australians have experienced mental illness in the last 12 months. Does that surprise you? Not by looking at our client's medical disclosures, not at all.

No. Around half of those Australians, so about 43%, have experienced mental illness during their lifetime. Yeah, and I mean, we'll talk about this a little bit more later in the episode, talking about chronic illness, talking about mental health is really conversations I have every single day with clients. Exactly. And in 2024, 2025, one in 10 Australians received Medicare subsidised mental health services, which equates to 2.8 million people.

So this isn't a little conversation. And these figures, from my perspective, become a lot, a little, a lot more alarming when it comes to chronic illness, particularly in recent years. An estimated three in five Australians are living with a chronic. condition that is a selected long-term health condition. Anxiety, back problems and depression top the list among females of all ages. 2.9 million female Australians are living with anxiety. 1.9 million with back problems and 1.8 million are living with depression.

The prevalence of living with one of those or more of those selected long-term health conditions is higher among women than men aged 15 to 44. And as mentioned earlier, we know that one in seven, women in Australia are living with endo. With this kind of prevalence among roughly 50% of the population, you can quickly see just how much our health influences our daily lives. Things like work and study and simply engaging with our family and friends can be negatively impacted if you aren't getting the treatment that you need or we simply can't show up in the world in the way that we really want to. And if illness wasn't enough, Phil, the financial consequences

of not being able to go back to work just adds insult to injury. Having a chronic condition might mean that you aren't able to work full-time or reach the financial goals that you'd imagined, even with a really high-paying role. It might even mean taking a pay cut to be able to continue within your role. More than half of Australian workers have taken sick leave due to mental exhaustion with almost one-third requiring time off in the past 12 months alone. So, my friend, Phil, it is not a lot of. wonder we are all burning out. And I'm probably preaching to the converted here, but in your

experience, have these numbers shifted in the recent years? Yeah. And it's been a big increase in claims. And so this is why, you know, we look at insurance as like a bill, but it's really a safety net, a financial safety net. So there's been $2.2 billion worth of claims paid out for mental health conditions just in 2024. I was about to say that was just in one year. Yeah. And this is like double more than what it was five years ago. So it's a steep increase. One in three claims are paid out for mental health for TPD, one in five for income protection. And so, and that's just one area of claims. And so it just shows the importance of making sure we have cover in place. We have that safety net

behind us should we ever need to claim. And for me, it just feels like a piece of the puzzle. It's a very large piece, but I feel like it's increasing because we are just so done. Like post-COVID, we thought, light at the end of the tunnel, Phil, it's coming, everything's going to go back to normal and feel better and do better. And it's not. It just feels like a consistent pile on, which just makes chronic and mental health conditions even worse. So obviously when people are making claims is because they need the support to stay engaged in their wider community, whether it's recovering and returning to the workplace or having the resources to simply participate in society. And what I mean by that is to see their family and friends, to be able to stay active. and healthy and not only physically but also mentally all of that. And I know that we briefly

touched on this earlier, but let's say this doesn't affect you personally. How might it affect you as a member of society? So in 2023, 24, chronic conditions cost the Australian healthcare system $98.5 billion, which is accounting for more than half, so roughly 55% of all. all health system expenditure on disease and injury in Australia, or approximately $3,590 per person. Isn't that wild? Yeah, that was a B. That was a B. 100, almost 100 billion.

Billions and billions. In one year. Yeah, and it just shows how important it is to make sure we have, you know, a safety net. The government is a huge safety net in this $100 billion. It's diabolical. And when it comes to workforce employment, Australia has lost around 537,000 person years of full-time employment and approximately 47,000 person years of PT employment due to chronic disease. So it's not just a big issue for the individual, but one with widespread economic and socioeconomic implications. So think of it this way if a large chunk of our society can't participate in the workforce, as in they can't contribute to the private.

products and services and ideas that are shaping our future, how are our products and services and ideas then impact it? They become less diverse, they become less accessible, they become less inclusive because we're making things without a whole group of people representative of our community. And I think that's a pretty damn big deal. Phil, how have you found that having the right insurances or coverage has helped people find some sense of normalcy after a diagnosis or medical event? It's super important to think about that. these things before you have these chronic conditions. You know, we talk a lot about applications and how do we apply when we have them and it does make it more difficult. So setting these

policies up before you have these claimable events are so important. And so in our numbers, we'd like to track data, he's a data in our business. We've got just under $11 million of claims paid out. Yeah, I actually thought that I was stats queen and you were like, hold on, hold on, hold on, I'm stats king. Like, it's actually crazy. We've cleaned up a lot of our data in our business and so we can just report on it. It's actually insane. In fact, if you are just listening to the show and you don't even want to do your insurance, still head to Phil's website because the amount of just stats and facts and

facts in like real-time data that you've just got rolling out on the website all the time to be like, well, actually, this week we saved our clients this amount and this is what we did. And this is how many claims were paid to SkyWalth people in this year. And we did 41 claims here. I'm just like, how? It's magic. It's called AI.

I know, but it's just crazy. Yeah, but I mean, these are real people. And this is a thing. We help our clients go through the claims. Yeah, we help plenty of people set up their policies for that safety net. But the 41 individuals who have claimed, you know, we're talking about death claims. We're talking about, you know, cancer claims. We're talking about ongoing income protection.

So we've got currently nine people on ongoing income protection claims. And we look at the, like, the average claim that, you know, we've paid out for our clients. is $263,000 versus the average premium. It's like 95 years of average client premiums paid in a single claim for each of them. Crazy. Yeah. And so we help people make these claims and it's not just money in the bank. Like, you know, we had a father who had his wife pass away.

He's got two young kids and had different policies set up just because it was a right for him or for his wife, three different life insurance policies. That's $3.5 million that ended up being paid out. Now, that doesn't help solve their problems. No, because we give the money back in a heartbeat to have our normalcy back and our life back and our wife back, right? Exactly. But that's just not what's going to happen.

Yeah. But having $3.5 million to raise two kids on your own is life changing. And look, $3.5 million is not the normal amount. Like this case was we actually added a lot more life insurance because it ended. up being free. And so it was like, well, we've crunched the numbers, not having life insurance is actually going to cost you more. So we'll add it. And then not really thinking that that was the main purpose of that. And this individual had a car accident, passed away. And then, and it meant that there was money in the bank for this grieving, you know, widow, a single father now to be able to help

manage that situation moving forward. And just money in the bank account just allows a freedom just to do what you need to be doing in that time to just put down everything and focus on the kids, focus on your own grieving, focus on your own mental health during that period of time. Like it's, yeah, it's crazy to think that these things happen. And unfortunately, having worked in financial advice, you do see them happen quite intimately. And it's so sad every single time. But there's this sense of, I don't know, just peace that is provided or was provided to me when you could go, okay, cool, I actually can have your back here.

Let me go and do this and this. And then you could technically go and quit your job and grieve for the entire year or spend the entire year just structuring your kids' lives because you didn't sign up to this change that wouldn't have been afforded in any other circumstance. Yeah. And that's a life insurance claim. They are the hardest to deal with. But the chronic illnesses are the other claims that we work with where, you know,

ongoing income protection claims is really a lifesaver. We've got a client who is, you know, struggling to pay the mortgage and, you know, the banks are coming after them for that mortgage payment. And, you know, where they're supporting her, writing letters to the bank saying, hey, we think you shouldn't be trying to take this person's house off them. You just back off. Because this is likely going to lead to a TPP payment, which is going to fully clear that mortgage.

So back the heck off because of a chronic injury that meant that our client can't work. likely ever again. Yeah, and I think that that's where, I don't know, I've had these conversations before with people in our community. They're like, I could just do it myself. I'm like, just don't. Just don't do it yourself because not only are you going to have somebody who's able to look at advisor-only policies as well as the policies that are available to the retail client and find the best solution for you. They are so crafty at doing it and fitting all the puzzle pieces together. But at claims time, you're going to have someone on your team. Like instead of you having to do all of the paperwork and all of the planning, you pick up the phone and you say, Phil, things have gone

wrong and Phil will say, I will call you back, I will sort this out and I will let you know next steps. And that, to me, is priceless. And we have had, and I can talk to you about this off air, because I'm not putting it on the podcast, but I have had some people in my community, message me and say, Phil has been incredible during this period of time that otherwise we would have been heads in the sand and just filled with grief. And I just, I'm so grateful that your part have crossed because people are genuinely in better situations. And obviously you and I both are on the same page of thinking everybody should have this. And I think it's wonderful that resources and coverage like this exist to support those in our society who really need it. But I do wonder why we are

still experiencing such stigma around mental health and chronic illness and accessing support, particularly financial support, and by stigma, I mean really unfair perceptions that people are either over-exaggerating or like they're putting it on for attention or they are seeking a diagnosis for one condition or another because it's trendy, like that one's driving me up the wall, or doesn't have chronic fatigue, they're just lazy and you should just like suck it up. Like this stuff drives me insane. Phil, what are the dangers of this type of stereotyping? Yeah, I mean, like, you know, there is this idea that like everyone has it these days.

And it's not that untrue. Like, 43% of Australians have experience in mental health condition, as you talked about at the top. And it's very common. You know, one in eight Australians, wait 10 years before first asking for help, which is an insane staff. My word of the month is diabolical. Yeah, and that is diabolical. And like 800,000 Australians have severe mental health illness. Only 300,000 are permanently incapacitated.

Most conditions come and go. So they're in and out of their mental health illnesses. And that's exactly what products like income protection are there for. As you are experiencing that illness, you can replace your income because you need to take time to rest and recover. And so that pays a monthly payment. So it's not all or nothing. You can come in and out.

And given 500,000 people are coming in and out of that. kind of experience throughout their life, only 300,000 people are fully disabled because of that mental health condition. And so, you know, financial stress is the number one driver for mental health conditions. Like the, you know, I work closely with insurers and you talk to the actuaries, as soon as interest rates go up, their claim statistics go up. And so knowing that financial stress is the major driver for mental health conditions is a really important thing to go, how do we have a safety net for ourselves, whether it is a cash flow buffer, whether it is listening to issues on the money and starting investing.

Like, not having financial stress in your life is the best mental health treatment, maybe not the best mental health treatment, but it's very, very helpful. And everyone will say things like money doesn't solve all your problems or money doesn't create happiness or, you know, it's not the be all end. You know what, the stats don't lie. Kind of can be. It's not solving your problem, but if it's a driver of financial stress. Exactly. Like if you are having, if you are having trouble with money, it is going to impact your mental health. If you have money, that doesn't mean that you won't have mental health, but you are significantly less likely to experience it. I get it. I've been in oodles of debt before and it is crippling. It is all you think about. It is like it is the worst. Honestly, it sucks. But I think that minimizing it is even worse for the community because they're,

we don't reach out and we don't ask for help. And it goes back to that stat. You said that one in eight Australians are going to wait 10 years before asking for help. What? Aren't we about mateship and camaraderie? Like, no. Anyway, I feel like it's almost as if we turn away from illness, but we also turn away from a sense of social responsibility of supporting those who are living

with lifelong conditions. And it's a really weird phenomenon, especially when there are so many of us or will be, affected in our lifetimes. So, Phil, let's talk. What's changing and what's already changed. Have you got some good news? Because I feel like we're getting off track and going like, this is bad. This is not great. Oh my gosh. So what's the good news? Okay. So there's a few things changing. So we talked about this last time that genetic tests are changing their rules. So there was legislation changes. Yeah. Insurers can't use genetic tests when you don't have family history, but you just want to know more about your health.

So they can't use that against you. Good. From 1 October, 20, sorry, 8th of October, 2026. And so they can still do it today. I actually had a client yesterday where they're using a future genetic test. And there is one insurer who's scrapped it already, but everyone else is waiting to the deadline. Yeah, because they can deny claims and they can deny applications.

Yeah, I get it. It's all about risk management. But it drives me up the wall because I'm like, do you just want me to sit on this? because I will sit on this until the 8th of October and I will submit it on the 8th of October and you can't do anything about that. What do you want me to do? Like, I'm going to game the system, obviously. Oh, what else have you got? There is another thing whereby there is a life code of practice. Now, I'm going pretty deep and geeking out a little bit here, but there's a life code of practice that's that it governs how life insurance companies need to manage their business. So mental health is a massive drag on the claim statistics when it comes to insurers. they're all thinking about how do we not bleed cash because they're not pricing their products

accurately versus the claim statistics. And so the code of practice in the recent review, there was legal advice that the independent review came out and said that insurers can't blanket remove mental health condition from life insurance contracts. And so that's a big one. That is big. Now, historically, insurers never did. Everyone listening is like, what's how do even mean? Yeah, insurers never used it, but I actually, I've spoken many times, I actually thought they were going to start doing it. Now, there's always this question, is it actually discrimination? And so, you know, this independent review came and said, yes, it is discrimination, removing mental health from all life insurance contracts.

So that's the good news. Now, one thing that they said that they can do is limit benefits for mental health claims or they can change kind of the contracts to manage that claim experience. And so, you know, that's some of the things that they're changing. You know, other things like claims and recovery focused is a bigger part of it. So, you know, helping clients get back to full health. Which I think is so important because ultimately that's what we want. Like, that's what we want personally. Like, 99% of people on claim don't want to stay on claim.

Exactly. And this is a thing that I find really interesting about insurance companies is insurance companies are the only partners with an individual going through a chronic illness that is financially incentivised them to get back to full health. Yeah. And so, you know, it is an interesting dynamic. Everyone thinks, oh, they just want to kick me off claim so they don't need to pay me. Now, they want you to go back to full health.

Because if they kick you off claim, I promise you'll be back. So they actually want you to completely properly recover, not just go, oh, let's get them off claim because if we give them a few more therapy sessions, they'll be good to go. and then you have burnout the year after and they're on a bigger claim. Like, that's not actually in their best interest, is it? Yeah, exactly. And so, and the other thing is there are kind of like workplace, you know, chronic illness, support and policies, flexible working environments that is helping people.

So, you know, 79% of people with endometriosis say that working from home makes symptoms much more manageable. Totally. And the amount of friends that I have that have endo or have suspected endo, and go into the office and deal with it, and it's impacting their productivity. And, like, you can't just be comfortable. And, like, from a female perspective, Phil, that means maybe wearing your super comfy pants and being able to pop to the microwave wearing your slippers and heat up your wheat pack

a few more times. Like, personally, I'm not that comfortable doing that in the office. Like, I'm just going, oh, I'll just manage this a little bit more privately because I don't want to talk about it. Like, I just want to get on with life. And, like, I get it. But it's crazy how many employers just go, no, you need to be in the office. So it does sound like there are some really promising changes underway,

not only for people with existing health conditions, but for members of our community who suspect a diagnosis, but are maybe too afraid to seek one for fear of the financial implications. And it's also sounding like the industry is shifting from treating clients like a number or a case to close and more like their people who are finally. being seen as whole humans who get a holistic plan and that workplaces are slowly adapting their policies to keep people within the workforce for longer, which I think is very, very cool stuff. All right, after the break, we're going to be running through a few case studies inspired

by our She's on the Money community members to help explore what you might consider before speaking to an insurance specialist. So guys, don't go anywhere. All right, welcome back, my friends. Now, all of those updates are well and good, but how do they actually apply? to real world scenarios because I know you went pretty deep before Phil and we get it and like policy change is very exciting for you and I but most people are normal and most people go yeah but how's this impact me so we probably should get to that we've gathered a few examples from our community to see how we might navigate this conversation plus some things to consider before speaking to an insurance specialist just like you now our first example concerns a community member Phil

who is 26 years old and working part-time for a media company. She's used up all of her sick leave for the year, taking time off due to her endo. She's facing a laparoscopy and treatment, which will mean another week off work, but she may need follow-up surgery again later in the year. She has $22,000 in Super and hasn't organised any additional insurances outside of it. She's worried that she won't be eligible to use any of her income protection inside Super and she's more worried about using up all of her annual leave and having to take unpaid leave, compromising her budget, which is already going towards so many medical bills. What next steps might she consider in seeking additional insurances, Phil, what's she going to do? So in terms of not sure if she's eligible for income protection,

if you're off work for any health reason, any sickness, you are eligible. Now, income protection has a waiting period. Most super funds, their waiting period, default is 90 days. So that's the downside is you're going to have to be off work for 90 days to be eligible for those payments. But if that is the case, then they will be eligible for a claim. But in terms of additional insurances, one thing when it comes to insurance is we can't cover things that are historical medical events. So we can't go, I'll get a new income protection policy that will cover me for that endo treatment, which is unfortunate. But that's how home and contents works. That's how car insurance works. And so it's the same when it comes to

income protection. But it is important to make sure, okay, if we are depleting our sick leave, our annual leave for endo treatment, that we make sure we are setting up our insurances, should another chronic illness happen in the future or should something else pop up that is unexpected. So definitely considering for young 26-year-old, income protection, for my mind, is the most important thing, making sure that last till age 65, because if you do have a chronic illness that is lasting for a really long time, then you're covered for a really long time. Your value of your income is massive for a 26-year-old. Everybody in our community should know by now that's my favorite type of insurance.

Like, I talk about it as though it's like, you know, going to McDonald's and ordering something, but, like, genuinely, I love income protection because it's just it's the best insurance. Like, I know that there are 6 million other types and other people will be like, oh, well, I never claimed to that, but I claimed this. I don't care. Like, across the board, if you told me Victoria Devine, you have to get rid of every single insurance. You've got business insurance, car insurance, life insurance. You have to get rid of all of it, but you get to keep one. Which one are you keeping?

Guaranteed its income protection, like every day of the week. Coming back to our stats in our business, we've had 16 claims for income protection. Actually, trauma is 19 different claims. So more likely to claim on. trauma, but I still like income protection now. Yeah, I prefer income protection. It covers your income. It is the basis of our wealth creation is our income.

And so protecting that is the basis of everyone's financial goals should be income protection. 100%. And don't get me wrong, a trauma payout can be really helpful as a big lump sum of cash deposited into your account. But I will every day of the week pick an ongoing revenue source to make sure that I can still retire and still achieve my financial goals because even though, you know, a couple hundred grand right now might be great. Let's say you don't even have to spend any on the trauma. You actually just get to invest the whole amount. I don't want it. I want an income guaranteed.

Please. Thank you. All right. We've got another example. This community member is in her early 30s and was advised to take stress leave from a high pressure job in the logistics industry, Phil. As much as she agrees she does need it, she's worried about the stigma and how it might affect her insurance. She currently has income protection coverage, but no other insurances inside her super, as she's not eligible due to health reasons. How might taking stress leave impact her insurance, fill? And what might she consider when seeking more information about coverage to help support her while she's supporting her mental health? Well, in terms of the stigma or not wanting to claim, this is very common. I don't want to claim because my premiums will go up. The great thing about

life insurance and income protection, if you claim your premiums aren't going to go up after you can't do that. You can't do that. Because they're not allowed to. So there is no stigma. It's not like car insurance where they can actually cook you a little bit. Exactly. It's not like home and contents where they can increase it because under Life Insurance Act, they're not allowed to charge your high premium because of your claims experience if you've

got the policy in place. And so it is really important. If you need the stress leave and you've been advised, you've got medical advice to take stress leave, then go and take time off work and use that income projection. That's the whole safety net. that you've paid premiums for and that you've set up, so go and use it. Now, when considering new policies, that experience, that mental health treatment and advice and recommendation will impact the future policy.

So if you need to go and increase your income protection in the future, they will consider that advice. Even if you don't take stress leave, just a doctor advising you to take time off work will have an impact on any future policies. It won't impact your trauma, it won't impact your life insurance, but it will likely impact your disability cover and your income protection if you don't already have it set up. Yeah. All right. And have you got a case study from your business that you might want to share? I asked you to come prepared. Yeah. As I said, we've got the data. So, you know, we had a young

professional and osteo, you know, using their hands all day long, set up the policies a few years ago, five years ago, or six years ago now, was 28 at the time. Policy went into force, 21, 18 months. later. Not very long, holding the policy, 18 months later, took some time off work because they had some problems with their wrist. Being an osteo, they're using their wrist at the time. That would suck too because you're completely mentally all there and fine, but your wrist hurts so you can't go to work. Yeah, and there's one of these chronic injuries where it's like, I can just push through it. Like, it's just a sore wrist for the first week until it's not. Yeah. Anyway, she's been on claim for income protection for many years now.

and now second surgery in and still not better. And so it's still not eligible. And this is, you know, going back to the banks following her up and saying, paying you more because what's going on. This is the same client. And so we've had to go into bat. We obviously wanted to go into bat for this client and say, hey, like, we don't think it's reasonable you should try and take this client's house off them.

They're making payments and they're making away. Second surgery in, still not able to. Now, the good news is that there is an own occupation TPD. So if this client really can never go back to being an osteo, then we've got that backup plan. And that was a part of our letter to the bank is we've got a TBD policy. If she can't ever go back to work, she's got that safety net. So your mortgage is going to be clear. Settle down.

Just give us a break. Chill out. Give us some time. We're working through it. And so, you know, in terms of what's being claimed, it's $4,900 a month is paid. So, you know, she's received over $170,000 so far in income protection claims. I'm so glad. The policy is till age 65.

So if she can never work again, she'll continue to receive that. Now, one thing to note, income protection will only cover a percentage of your income. Yeah, it's never 100%. Or 75%. So you're not going to be financially better off on income protection claim. And so it is really important to make sure you have that emergency fund. Make sure you also include TPD as well because of your insurance. does become a chronic illness that you can never return to work again or go back to your own

work again, then you do have that money coming in. So look, really claim time. When it happens, when you have these injuries and illnesses, your whole life just turns upside down. Yeah. Especially the chronic ones that they kind of start to creep in and creep up on you and then it gets more stressful and you realize, actually, I haven't been working for five kids. I'm not okay.

I need to take time off work. And these are the conversations we have with. every one of our claimants. And I would, you know, you said Phil does all this. It's not me. I've got an amazing team who do all this work. Okay. So personally, Phil does all this for me. Yeah. Because Phil is actually my direct advisor. But Phil has a big team of lots of capable people. And you're right. I should have acknowledged that. Yeah, they're much more capable than me. You know what? You're not wrong. You're not wrong. One of the cool things about you and I is we both believe we should always hire people who are smarter than us. Otherwise, why are we hiring you?

So that's kind of a winner for your customers, but not for me because it turns out I've got the DUD advisor. Is that what you mean? You do. All right. Well, let's go into a quick fire round before we finish of questions that have come from the community. Phil, while we're on the subject of chronic and mental illness, will NDIES budget cuts impact insurance and coverage for those currently accessing it? So in terms of your personal insurance cover, no, nothing changes. your personal insurance cover is a contract. So NDIS changes that may lead to more claims when it comes

to that insurance. So, you know, that won't have an issue with any in-force policy. I love that. All right. Here's a question from the community. I've seen a psychologist. I'm on antidepressants. Can I even get cover? Yeah, for sure. So good, because I got it through you guys and I have seen a psychologist and I am on antidepressant. So look at this walking case study. Exactly. And, you know, sometimes it's standard rates, so no exclusion, but most times it is exclusions. You know, the higher claims rates is meaning that insurers are getting more conservative.

And over the, I've specialised in insurance over six years and it's getting worse and worse in terms of when setting up a policy. That doesn't mean you shouldn't be getting a policy. It actually means get a policy earlier. Yeah. as early as possible. And so it is super important that you can get policies in place, even if you've been seeking treatment, even if you're taking ongoing medication. Yeah. All right. Here's another one that we get quite often. Isn't the default coverage in my super enough? So coming back to

the contract, it isn't enough. So as mental health, that legal advice I talked about earlier, said that they can't blanket rule out mental health, but they can limit claims on mental health. And that's where I think the trend will be going, where default cover through super, it's a contract between the Superfund and the insurance provider. And so they can make changes whenever they want. And so the average payout from an advisor is just under $550,000 for a retail advice policy through the super fund is $142,000. For TBD, it's almost $800,000 versus $150,000. So the actual claims number for default versus going through an advisor is going to be much different. And if you are on claim, more money is better than less.

More money equal better. Okay, I think we can work with that at this point. And unfortunately, we have run out of time. I have been trying to race to the end and fit in as many questions as possible. So we will definitely have to get you back on the pod. But Phil, as always, this has been such an insightful chat. And I cannot wait to get you back on the pod because I have six million questions. But to wrap this, because if something hits a little bit,

too close to home today. Two things. First, your existing cover still works, but read it before you assume the worst. Second, if all you have is whatever your super fund gave you by default, find out what you're actually holding. Know the numbers. Knowledge is power. And then when you're ready, what I would personally be doing is checking out the Sky Savings on the Sky website. It's actual real audited data, like for like comparisons. You can find your Superfund and see what Skywilt's clients are paying when they move from their default super cover to a retail policy, which they advise and set up for them. Honestly, I would say it's incredibly eye-opening. In fact, I just like playing on there because I'm a dardy gal. I'm like, oh, they saved what? Okay. What's this one do versus this one?

In fact-checked my own advice on there because I was like, oh, I know what that looks like, but what are other people doing? Because I guess it comes back to this. Most Australians deserve more. The problem isn't the coverage available. It's the know-how behind it. And that is where you guys come in, which is the best. My friends, I hope that this deep dive has brought you some relief and maybe a little bit more confidence when it comes to insurances and what happens when chronic and mental illness enter the chat. If you're ready to give your coverage a little bit of a health check, please get in touch

with Phil, but probably more his team over at SkyWalth. We'll make sure to add all of the relevant references and links to the show notes so that you never miss a beat. Please take care of yourselves and of each other. and we'll see you on Friday for some juicy dilemmas and yaps with the gang. Bye guys. The advice shared on She's on the Money is general in nature and does not consider your individual circumstances.

She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD, and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's on the Money are authorised. representatives of Marni Sherper P-T-Y-L-T-D-ABN-321-649-27708, AFSL-FSL 451-289.