I am a single 59-year-old registered nurse, still working part-time. I own my home, a flat, and need to find adequate insurance in case of major illness, accident and permanent/partial disabilities. I also need advice to deal with my superannuation. I have about $300,000 spread over State Super, Colonial First State and bank deposits. I love my job but I do find that ageing and health problems may mean I do need to stop working in the near future. K.W.
Given your age and mention of existing health problems, you may find it difficult to get additional affordable insurance, assuming you already have some automatic insurance cover through your super fund. That should be the first place you would look to increase your insurance. Otherwise, you need to talk to two or more insurance brokers, or tied agents if you have a preferred insurance company. They will go through the options available for income replacement insurance (tax-deductible premiums, pension-style benefit over a limited period, can be bought in your name or through your super fund, but not useful if on the point of retiring), trauma insurance (non-deductible premiums, lump-sum benefit in the event of a stroke, etc, not available through a super fund) and total and permanent disability insurance (can be bought through your super fund, payable as a lump sum if permanently disabled).
You might find any insurance other than group plans through your super fund proves too expensive.
If heading for retirement, and with health problems, you might research retirement villages, in an area you like and which allow you to progress from independent living through hostel and nursing-home levels of care. This would involve selling your flat and combining this with your savings, but you will then have less to worry about in regards to care.
In the meantime, and while still working, save like mad, especially through salary sacrifice into super, making full use of the fringe benefits tax exemptions available to hospital employees.
If you have a question for George Cochrane, send it to:
Sunday Money, PO Box 3001, Tamarama, NSW, 2026. All questions answered.
Help lines: Financial Ombudsman, 1300 780 808; Centrelink pensions, 13 23 00.
