Any recommendation on Life Insurance Company?
Have had it with super fund but need more cover.
Any tips? Thanks.
Seek Recommendation on Life Insurance
eatwell365 on 11/01/2016 - 23:29
Last edited 12/01/2016 - 11:15 by 1 other user
Last edited 12/01/2016 - 11:15 by 1 other user
Comments
Get it via super so the premium is tax deductible.
Consider if you really do need more cover. Many people insure to the point that a tragedy becomes like a lottery win for the survivors. Insurance sellers will obviously try to talk you up, but to steal a phrase from the real estate industry, excess insurance premiums are 'dead money'.Personally found life insurance with super:
1. policy only is alive only when the super account is live - when merger/change of companies, very often move of super as well, hence, a new insurance policy needs to be taken.
Problems with taken a newinsurance policies each time are -
Old/exiting policies normally have better terms/premiums.
It could be much harder to insure later in life when older than when young/healthy.
2. maximum amount is smaller esp without medical exam - hate the trouble."it is a problem when you are worth more when dead than alive."
I do like that peace of mind.
found cost/amount insured of life insurance is a lot more reasonable, in comparison to the compulsory third party car insurance.
It's not really a lottery, but when if I die, my wife will be able to pay out the mortgage and have sufficient funds to send our 2 young kids to private school.
I'm worth a $1m dead, but probably $3m if I lived to age 65. I can't see my wife covering that shortfall without insurance.
Without knowing more of your personal circumstances, it's difficult to focus on any particular area of life insurance.
I'm assuming you're employed, so super might be a good place to start. The premiums payable generally work out to be tax deductible and you don't have to take money out of your own pocket each month. (I say "generally" because it's the Trustee that claims the tax deduction - whether they pass that deduction on or not is their decision - most do).
Depending on your type of job, your super may come under an employer-sponsored plan. If that's the case there normally is a "group insurance" plan taken out by the employer. Each employee gets a certain amount of insurance - whether it's based on their salary or age. Most places allow additional voluntary insurance cover to be added, however, if it's more than a pre-set limit, you'll need to complete a personal statement detailing your individual circumstances for the insurer to assess the risk and determine whether they approve of the amount or not. The premiums for this group policy are generally cheaper than a normal retail policy.
The point (1) you've made about the policy being alive only when the super account is live is true, however, unless you're close to retiring, wouldn't your super account remain open until then? If you leave your current job and have to move out of the employer plan, most companies will automatically transfer your super account along with some or all of your life cover (Death, Total Permanent, Total Temporary Disablement) over to a retail super plan. Note that if this happens, your premiums will usually revert back to retail rates. When you're rolling over your super, some companies are happy to take-over the same amounts of insurance without further medical evidence. Best thing to do is confirm all the details before transferring your super anywhere else.
hi hv, you hit all the points -
1. not economical to pay retail rate over corporate rate, Every time change of companies either voluntarily or through acquisition, the super changes and happens more often nowadays than ever. The insurance is 2-3 times in my case.
2. tax deductible on income tax protection but not on death/TP/TPP?
hence looking for a good life insurance and no need to swap from time to time and better terms/conditions.oh.. "Income Protection" and "TPP" (Total and Temporary Disablement) are one and the same thing.
Basically, any premiums paid on an insurance policy that provides a lump sum benefit when it's triggered (as opposed to an income stream) is not tax-deductible outside of superannuation. The tax deductibility of the premium works in the super fund because the trustees claim the deduction and pass it back to their members.
For Income Protection/TTD policies outside Super, the benefit is in the form of an income stream, so the premiums are tax deductible and claimable on your personal tax return.
Make sure you get a policy that has Level premiums so the price doesn't increase as you get older.
You can take out Term (Death) and TPD insurance from one insurer but deduct the premiums from any super fund. So you can switch superfunds in future without worrying about reapplying for insurance.
I'm a CFP and I also recommend life insurance to people. I regularly use about 6 different insurers. Not one insurer is the best overall and not one insurer is cheaper overall. The one I recommend will be the best value for money one and that depends on what insurance type you want, your age and occupation.
In the past, the industry super funds had very cheap insurance, but they are expensive today. Why? Because they cover everyone without any medical underwriting, they are more likely to claim. Not many insurers wish to underwrite the industry super funds anymore, and if they do, they charge a premium because they can't pick and choose who they insure.
What do I do when a client has medical issues and can't get a top grade insurance policy on level premiums? Tell them to join an industry super funds where they can get some cover without any medical underwriting. Just bear in mind most industry super funds policies have unitised cover, so as you get older your insured amount drops significantly, and guess what, you're much more likely to claim as you get older.
I'm not here to sell you anything, so feel free to ask any questions.
thank you for the advice.
+++ on
1.level premiums - I can't find retail life insurance that has level premium. any suggestion on names of insurance companies?
2.like >You can take out Term (Death) and TPD insurance from one insurer but deduct the premiums from any super fund. So you can switch superfunds in future without worrying about reapplying for insurance.
3.think of taking the max now, as limit drops with age but won't affect policy already taken earlier in life.Comminsure, MLC, Onepath, Asteron but to name a few, however I'm not sure if you can buy the policy direct. You most likely have to go through a financial planner.
Probably going the super path will work out easiest if you're healthy. Pretty sure you can't get trauma insurance in your super insurance policy last time I checked. So you'd probably want to check what kind of cover you have for major illness that doesn't stop you from working ever again. That was a major downer for me as everyone told me to be more worried about the probability of having an aneurysm or cancer as an under 40 than having to worry about literally dropping dead.
A potential disadvantage of having insurance policies through super is they are owned by the super fund not you personally. Insurance companies will generally pay benefit to policy owner first. Eg, you claim on TPD, it will be paid effectively into your super, then to get the money out you need to get the approval of the super trustees. The process can take quite a while which wont help if the bank is knocking on your door.
Level policies are not guaranteed to stay the same and can definitely increase but will probably increase less than stepped policies over the life of policy.
Let me know if you need help with anything
please find me a bargain with below
- level premium
- no need medical check (I am healthy, just don't like the hassle)
- insured amount $1mil to $1.5mil.
- reputable insurance company
- guarantee insured amount - for the life of policy. ?some policy ceases at age of 65.Ok to pm me.
You should really see an insurance adviser. You are potentially talking about a $1.5 million. It's worth making sure you get it right.
Legally no one could give you the information you are requesting without getting a lot more information and then providing detailed advice in writing.
For insurance adviser, free may be biased and fee is no bargain. who to see?
Yo you cant get 1.5mil dollar policy with no medicals. If you were an insurer you would never insure someone for 1.5mil with no medicals :p
I will pm you for some info :)
dupe
HI eatwell,
Did you end up buying life insurance as I have found myself in a similar boat?
Thanks for sharing your expereince
Take out more cover in super