Private Health and Other Insurances Advice

JuryWheel on 09/03/2017 - 09:02
Last edited 09/03/2017 - 09:09

Hi All

I'm 33 with a wife and 2 kids and am about to buy our second home having just sold the first one. We have never had Private Health or put any effort into looking into other health related insurances. Thought with more and more financial pressure being put onto my shoulders, I had best get my butt into gear and get some sorted.

Anyone got any specific suggestions? Particularly relating to things like Income Protection and Life Insurance. I have been told that sometimes the best way to do this is through Super but am not too sure what to look for, where to start etc. Im with Australian Super.

EXTRA INFO - I work full time earning around 65k, and the missus works part time earning around 55k. One child is 4.5yrs going to school next year, the other is 2 at child care a couple of days.

EDIT - just checked my super and its set as "Death - $275k, units of cover x3" "TPD - $275k, units of cover x3" "Income Protection $3000, units of cover x6".

What does 'unit of cover entail'? Am i better to select 'fixed cover'? Im thinking I will need to up my numbers to match all my debts and maybe a year or two of income? What about the income protection?

Thanks

Financial

Comments

  • Peter Enis on 09/03/2017 - 09:21

    The insurance included with your super is often referred to as "junk insurance" - just read all the articles that have been appearing in the papers lately. There will be so many clauses and caveats that it will be almost impossible to claim against. Real income protection and/or life insurance costs money. As the saying goes, you get what you pay for.

    I would recommend speaking to an insurance broker. They will take all your circumstances into account and offer you a customised quote - be aware though that you will have to pay for their service in one way or another - however usually the discount you achieve through them will offset their costs to you.

  • CLoSeR on 09/03/2017 - 09:30
    +1

    For health insurance take a look at the government website www.privatehealth.gov.au as this site will allow you to compare all Health Insurance Policies available.

    Other sites like iSelect will only compare funds that pay them commissions.

  • JuryWheel on 09/03/2017 - 09:43

    Thanks for the advice. Just went through my super options, selected (as a start) $640k for both death and TPD (both as Units which apparently equates to 7 units - no idea what this means!), and $4500 monthly payment for Income protection (~85% of income, 60 day wait, benefit period 2 years) and the total comes to $13.94 pw.

  • chrisd262 on 09/03/2017 - 10:27
    +1

    I agree this option is considered junk insurance. The associated conditions mean you really can never claim. There is a lot of info around on it - I dropped it a long time ago. You are wasting $700 a year.

  • JuryWheel on 09/03/2017 - 10:39

    Any suggestions then on where to look…?

  • Colombian on 09/03/2017 - 11:07

    Is there a way to opt out of the income protection insurance from Australian Super?

    I have to say though, that I did claim an income protection to Australian Super about 3 years ago. I was unemployed for 5 months due to a fracture in my leg. As stated above, the paid me after 60 days so about 3 months salary. Did not have any issues and everything was easy.

  • coffeecoffeecoffee on 09/03/2017 - 13:06

    My husband had organised Death/TPD/IP insurance through Australian super and thank goodness he did as he was diagnosed with brain cancer in 2015. We have been using the IP insurance since then and are currently doing a TPD claim. I have found Australian super to be very good. There is lots of paperwork at first but since then it's a monthly chat and occasionally paperwork. Things to consider - TPD claim takes 22% tax whereas death or terminal illness is no tax. For a terminal claim they want the prognosis to be under 2 years.

    It has been well worth it for us. So glad it was all organised as we had NO warning. He went to work as normal that day and has never returned.

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