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Is pet insurance worth it?

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Whether your pet is staying home alone this holiday season or hitting the road with you, it pays to be prepared for the unexpected.

More than two-thirds of Australians now have a pet and some of us have a whole menagerie to love. Should they get bitten by another animal, pick up the flu, or swallow a Christmas bauble, it may not be a Merry Christmas for them or your bank balance.

Treatment for injuries or illnesses can run into the thousands of dollars and consultations can be particularly hefty if out-of-hours or public holiday emergency care is needed. A pet insurance policy can cover 60 to 100% of vet bills, but how do you decide if it is worth the outlay?

Below are points to ponder before taking out pet insurance.

1) How old is your pet?
Many policies won’t cover a pet that is more than eight years old. And if you’re not sure of your pet’s age because they are a rescue, that can be tricky too.

2) What breed is your pet?
They may be cute and adorable but some breeds are more prone to issues than others. French bulldogs, pugs, and Boston terriers, for instance, can be susceptible to respiratory issues and that can push up the cost of insurance.

3) Do they have any pre-existing conditions?
It may be difficult to get cover, or cover for a reasonable cost, if your pet has a pre-existing condition. So, think about insuring your pet when it is eight weeks old, particularly if you want cover for vaccinations, desexing, and council registration.

4) Does switching make sense?
In recent years, more insurers have entered the pet market. If you’ve been automatically renewing your policy, take the time to have another look around.
When you’re sizing up another policy, make sure it offers similar (or better) benefits, check on any waiting periods and how the potential insurer might treat any pre-existing conditions. What are the annual benefit limits and are there any sub-limits for benefits such as cruciate ligament conditions?

5) What is excluded?
Whether you’re buying a new policy or switching, make sure you understand any exclusions. Most policies don’t cover dental treatments, pregnancy, and transplant procedures. Behavioural problems or any conditions caused by behavioural problems are unlikely to be covered. Grooming, training and socialisation, alternative therapies, and pet food or supplements (even those recommended by your vet), are generally excluded.

6) Can you reduce your costs?
There are three levels of cover beginning with the most basic accident-only cover. Then there is accident and illness cover and finally comprehensive cover, which adds routine healthcare to the mix. The higher the total annual benefit limit and the higher the percentage benefit limit, the higher the premiums. Agreeing to pay a higher excess in the event of a claim can lower your annual premium. Got multiple pets to insure? You may be eligible for a discount.

7) Could you save instead?
It may be better to save money in a separate bank account to fund any unexpected pet-related problems.

As you can see, there are a variety of different factors to consider, so take the time to do your own research when deciding what’s worth it for you and your furry friend.

Tips for stress-free travel

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The holiday season can be stressful enough without adding travel troubles to the mix. Below are some ways to ensure you arrive safely and happily at your Christmas holiday destination.

1) Be an early bird
Maybe you love the spontaneity of a last-minute trip. Who doesn’t? But save it for another time of year. When everyone is jetting off to their favourite holiday destination or driving home for Christmas, the early bird gets the hassle-free holiday.

2) Pack once, pack well
Follow Santa’s lead and make a list and check it twice. No-one likes the feeling of arriving at their destination and discovering they’ve left their swimming costume or their phone charger at home. Grrrr. Group things together (e.g. toiletries, shirts, shoes) so it’s easy to locate things.

3) Travel with carry-on only
If possible, take carry-on bags only when flying. It not only chops out waiting times at the luggage carousel, but you get to the head of the taxi queue quicker. Plus, there’s no chance of luggage taking an unplanned detour enroute. Of course, if you are checking in luggage, take some basic toiletries and underwear in your carry-on in case your bags go missing.

4) Be prepared for hiccups
Stress levels rise when the unexpected goes down. Realise that traffic jams happen, flights get delayed or cancelled and weather can create havoc. When we’re prepared for the unexpected, we’re able to weather the storms in a better frame of mind. Allow yourself plenty of time to get to the airport or reach your destination. That way if the unexpected happens, you’re not stressing about missing a flight or Christmas dinner.

5) Snack wisely
Hitting the bar in the airport or munching on cakes and lollies on a road trip can make us feel worse-for-wear when we arrive. So, pack feel-good snacks such as protein or muesli bars, nuts, fruit, and plenty of water and resist the kids’ pleas to stop for junk food.

6) Take breaks
Plan to enjoy the journey. Walk along the main street of a town or a beautiful beach rather than sitting in a petrol station café when you take a break from driving. See if you can discover something new along the way. Airport delays could be a chance to call a few friends and wish them Merry Christmas or read that book you’ve been meaning to start all year.

7) Breathe
If you feel the irritation rising or panic setting in, take a few deep breaths. It helps to reset your nervous system so you can carry on from a place of calm.

8) Build a buffer
Consider taking out travel insurance or having some extra dollars in the kitty can prevent financial stress from compounding travel stress.

9) Rest up
If you’re crossing time zones, prepare for the time in your destination. Either stay awake longer or bring music or meditations to lull you to sleep earlier. And if you have a long drive ahead, rest well beforehand.

10) Remember others
Collective stress can impact us too. Take steps to lower the stress levels of those around you by being kind to strangers and expressing appreciation to loved ones.

‘Tis the season for giving

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‘Tis the season for giving, and International Volunteer Day today, December 5, is the perfect time to consider how you can contribute.

Launched in 1985, this year it has a theme of ‘Solidarity through volunteering’. With millions of people already volunteering in Australia, it is hoped the theme will inspire more people to lend a helping hand. Volunteering can be a great way to forge new connections with like-minded people who share your values and interests. It can also offer an opportunity to learn new skills or gain valuable experience in areas that may not be related to your working life.

Here are five things to think about if you’d like to give back in 2023.

1) Why volunteer?
Think about your why. What is going to feel rewarding for you? Are you hoping to meet new people in your neighbourhood? Do you want to make a difference for a particular group of people in the community: new migrants, the homeless, people with disabilities, for instance. Or is doing something to help save the planet your passion?

2) What skills can you offer?
Enthusiasm goes a long way, but most organisations will look for skills when people put up their hand to volunteer. You may be happy to offer professional skills on a pro-bono basis or part of the attraction may be the opportunity to learn new skills or practice recently gained skills. It might be a way of indulging your love of animals or the arts or expanding your understanding of the fundraising process in the not-for-profit sector. Got great people skills or previous experience managing projects? Make sure you mention those in your expression of interest.

3) How much time do you have?
One size doesn’t fit all when it comes to volunteer commitments. You may be happy to volunteer for a one-off event such as a local festival. Or perhaps you know you’ll have a lighter work or study-load in the coming months and can spare regular hours but only for six months. Offering a few hours on a one-off basis to help a not-for-profit get a particular job done might be more your speed.

4) When are you available?
Some people have more flexibility during the day on weekdays when the kids are at school or because they are retired. For others, their time is their own in the evenings or on weekends. Your schedule will influence the volunteering opportunities available to you.

5) Be patient
Just because you’re willing and able doesn’t mean you can begin volunteering tomorrow. Organisations may have an interview and reference checking process for potential volunteers. They may ask you to satisfy a working with children or police check or there may be a training program or information session to attend before you can begin your volunteering journey. If the organisation is operating on a limited budget or is staffed by other volunteers, it may take some time for the wheels to turn. So be patient and know that it will be worth the wait.

Wear your heart on your sleeve with ethical fashion

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Along with paid parental leave and childcare reforms in the latest Federal Budget, ethical fashion received a small boost. The government committed $6.1 million over four years to help consumers choose ethically sourced Australian textiles, clothing, and footwear.

So how do you literally put your heart on your sleeve and dress in a way that is responsible and ethical?

Going to the local op shop to supplement your wardrobe or swapping clothes with friends and family members is a great starting point. From there it means learning about supply chains and the manufacturing processes involved in producing textiles and clothing. Up to 10% of global greenhouse gas emissions come from fashion production and supply chain tracing remains one of the industry’s biggest challenges.

Baptist World Aid makes it easier to discern the companies and brands that are producing ethical fashion. It produces an Ethical Fashion Guide, rating brands on how they protect workers and the environment. This year it rated 120 companies representing 581 brands, giving them a score out of 100. Leading the pack was Sydney underwear maker, Mighty Good Basics, with a score of 86 out of 100. But the average score was 29 out of 100 and some scored zero. The report included footwear brands for the first time.

Its research turns the spotlight on six factors when assessing a company and its brands.

– Do companies know where their materials come from? That involves supply chain tracing beyond final stage factors to fabric mills and farms.

– Do companies pay workers a living wage? Workers through supply chains are paid a local living wage without working overtime.

–  Are companies listening to their workers? Workers can collectively organise action and have a safe, effective channel for complaints.

–  How do companies respond to labour exploitation? Is there an effective process for addressing child and forced labour and timely resolution of workplace violations?Are companies choosing sustainable fibres? Sustainable fibres including organic and recycled are chosen, guided by an environmental impact assessment.

– Are companies taking climate action seriously? That means commitment and strategy to reduce GHG emissions by 50% by 2030 or a Science Based Target.

For fashionistas who want to support ethical choices it has six suggestions. 

Use the information in the Guide to target brands, either thanking them for taking action or spurring them on to lift their game;

– Encourage your friends to take an ethical approach to their wardrobe by hosting a clothes swap, for instance.

– Urge government to take more action to support ethical fashion;

– Make informed decisions using the information in the Guide about which brands to support.

– Assess your shopping habits and opt out of the fast fashion cycle.

– Think about the fibres you’re wearing. Conventional cotton is a highly water intensive crop to produce and often uses large amounts of pesticides, for instance. Better to wear certified organic cotton, Better cotton, Cotton Australia myBMP, Fair trade-Organic certified, or recycled cotton.

Recent Market Volatility

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While it is not usual for us to make comment on short-term market events, we have had many inquiries—‘what is going on in the markets right now?’ and ‘have we seen the worst of it yet?’.

It is a very difficult market environment to read at the moment. All major financial markets (shares, bonds, currencies and commodities) are jumping wildly (up and down) at the news cycle, and there is much erratic behaviour feeding the volatility e.g. central banks rapidly hiking interest rates led by the Federal Reserve, major uncertainty around inflation data on a monthly basis, the United Kingdom (UK) tax cuts and Bank of England quantitative easing (QE) policies; and then reversal, an Organisation of the Petroleum Exporting Countries (OPEC) meeting with an agenda to potentially cut oil production and the Ukraine War situation, because it is heavily dependent on what Putin does next.

Equity markets are currently seeing bad news regarding the economy as good news for the market. They are being buoyed by any data announcement that is pointing to economic softness, as this increases the prospect that Central Banks won’t push as hard with increasing policy rates.  Conversely, good news such as low unemployment, has been seen negatively by the market, as it indicates that Central Banks will continue to hike.

In an environment like this, the bottom will only be evident in hindsight. The observation I make, and somewhat uncomfortably given how fluid the situation is at the moment, is that it appears that there is a lot of bad news already in the market price (see chart below).

From this chart it is worth noting:

The highest percentage of American Association of Individual Investors (AAII) bearish sentiment was 70% and occurred on 5 March 2009, near the end of the global financial crisis bear market.

The lowest percentage of AAII bears was 6% on 21 August 1987, shortly before the stock market crash of October 1987.

The key question is now if it is all in the price?  From what we are seeing, maybe not all, but most. Earnings Per Share (EPS) revisions have not yet been revised down to the extent one would expect given the increased prospect of recession and retail sales, while off their highs, have remained resilient. Continuing to quote conflicting data, ad nauseam, would only serve to highlight how difficult it is to make sense of the markets and the economic prospects in the near term.)

From market activity in the past two weeks in particular, the swings are of a significant magnitude. Currently, +/-1% is not a significant move in the present market environment. This behaviour is characteristic of an inflection point (not a turning point); meaning, it could turn and rebound higher or it could leg down again.

The Reserve Bank of Australia’s (RBA) October monetary policy announcement is a case in point. The markets were expecting a rise of 0.50% in the cash rate, but the RBA delivered only a 0.25% increase. This indicates a softening in the RBA’s position regarding inflation. Time will tell, though this is the first time since the beginning of the tightening cycle that the RBA has eased the pace.