Moved Overseas for Work. Should I Keep The Insurance in My Super Account?

• 

  Donaldhump on 25/04/2018 - 13:07

  +1

  What's your premiums? And expected duration overseas. I'd honestly just keep it, as like you say you have to jump through hurdles when you return. Switching super accounts may be more expensive due to sell, buy spreads.

  • 

    Love a bargain on 25/04/2018 - 13:38

    Switching super accounts may be more expensive due to sell, buy spreads.

    Exactly my thought

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  SydBoy on 25/04/2018 - 13:07

  well it depends upon your age. i personnel keep my insurances going as long as i have intention to come back to Australia, the reason being on majority of insurances waiting period for certain type of health issue are longer than 5 to 7 year. so if you stop your insurance then you need to serve that period again. when you are young your premium won't be too high compare to when you are old, so i personally keep all insurances in super going as long as i have intention to come back to Australia and there is no condition in the insurance that can prevent me to claim if i am employed overseas.

  you are required to inform your superannuation about change in employment circumstance though and if your risk profile changes then they might increase the premium !

  • 

    Love a bargain on 25/04/2018 - 13:19

    Thanks for your advice.

    Not quite sure when but I certainly intend to come back to Australia at some point in the future.

    Haven't heard of the 5-7 year waiting period. Could you elaborate a bit more?

    Thanks for the reminder re notifying the super fund re change of circumstance. I haven't updated my info with them but since I'm still in a similar line of work (just doing it from a different location), I guess my risk profile wouldn't have changed.

    I guess I should read the T&Cs but I'd imagine a life insurance would cover you if you die, wherever it happens to happen. (& presumably the same for TPD & income protection.) I was going to ring them about this before I left the country but didn't get round to doing it.

    • 

      SydBoy on 25/04/2018 - 16:30

      When I changed my first job after 4years I enquired about closing account and open new account with another super.at that time I checked pds of my new super which clearly states that certain disease will have longer waiting period for death as well as tpd insurance. Obviously no one will insure you if you had any of deadly disease. So I decided to keep my first super just because I have completed 4 year and didn't want to waste that period. i am with different super then yours so you have to read pds to take right decision for your situation.

      • 

        bobbified on 25/04/2018 - 23:50

        at that time I checked pds of my new super which clearly states that certain disease will have longer waiting period for death as well as tpd insurance.

        This doesn't sound right for group insurance that you automatically get when you first join an employer. Unless you apply for additional cover (where you must go through underwriting and disclose further health information), there's an automatic acceptance amount based on units of cover or a multiple of salary. This is the default cover. Suicides are sometimes excluded for the first 13 months.

        Obviously no one will insure you if you had any of deadly disease.

        This can also come under the default cover that's automatically accepted without the provision of health evidence.

      • 

        Cheapskate Paul on 25/04/2018 - 23:56

        @bobbified:
        You are usually required to sign a declaraton about pre-existing medical conditions even though you don't have to provide evidence.

      • 

        bobbified on 26/04/2018 - 00:00

        @Cheapskate Paul:

        You are usually required to sign a declaraton about pre-existing medical conditions

        Are you sure the health declaration is for your super and not for your employer's liability insurance?

        I've never heard of this before. The usual condition that super insurer's have is that you're at work on the first day of your cover (ie, you're not already sick).

      • 

        Cheapskate Paul on 26/04/2018 - 00:04

        @bobbified:
        Exactly, pre-existing = already sick.

      • 

        bobbified on 26/04/2018 - 00:10

        @Cheapskate Paul:

        Exactly, pre-existing = already sick

        What I meant was, even if you have AIDS or advanced cancer - if you're starting a new job, the only thing you need to do to get the automatic cover is to show up to work on your first day of employment. You don't have to sign any forms to say that you don't have any pre-existing conditions.

        The employer ticks a box on the form to say that you were at work that day. If you weren't at work and the employer doesn't confirm that you were at work, then you'll need to fill out a personal statement from the insurer before you get accepted for that cover.

      • 

        Cheapskate Paul on 26/04/2018 - 00:21

        @bobbified:
        That is completely wrong. You are required to declare pre-existing conditions. What insurer is going to cover someone with advanced cancer, or even not so advanced cancer.

        You will be covered for everything except the pre-existing conditions.

      • 

        bobbified on 26/04/2018 - 00:30

        @Cheapskate Paul:

        That is completely wrong. You are required to declare pre-existing conditions.

        Lookup the term automatic acceptance.

        Edit - Have a read of point 8. It provides a basic explanation.
        https://www.superguide.com.au/superannuation-and-tax/life-in…

      • 

        Cheapskate Paul on 26/04/2018 - 00:36

        @bobbified:
        I suggest you look up all the terms of the policy, not just one.

        However, if you are correct, I will start a company that employs only people with advanced cancer to get one back on
        the insurance companies. Oh, and there may be a few kickbacks from my grateful employees.

      • 

        bobbified on 26/04/2018 - 00:50

        @Cheapskate Paul:

        I suggest you look up all the terms of the policy, not just one

        I've been working in this industry for almost 20 years in both administration and management where I regularly have to scrutinise these insurance policy documents to determine what cover super members are entitled to.

      • 

        Cheapskate Paul on 26/04/2018 - 01:02

        @bobbified:
        I need to start that company then. Thanks for your advice.

      • 

        bobbified on 26/04/2018 - 01:04

        +1

        @Cheapskate Paul:
        Good luck with your new venture! haha!

  • 

    Donaldhump on 25/04/2018 - 18:08

    In my super, and wife's super, premiums for <= 23 is higher than > 23. they start out expensive, then decrease till about 30 and then increase again. Why? I can only assume people below <= 23 are more prone to death due to stupid errors, such as mental driving and the feeling of immortality.

    • 

      bobbified on 25/04/2018 - 23:55

      I can only assume people below <= 23 are more prone to death due to stupid errors…

      That's actually a correct assumption! The insurance actuaries work out the statistics of people dying at different ages and the premiums are set accordingly. During the mid-high 20's to 40 or so, when most people are starting to settle with families and exhibit less risky behavior, is when the premium dips again. Then it starts going up and up again as age gets higher because of the health issues relating to age.

• 

  JimmyF on 25/04/2018 - 13:13

  Moved Overseas for Work. Should I Keep The Insurance in My Super Account?

  Read the PDS and see if the insurance covers you overseas etc. These policies are pretty 'weak' at what they do and don't cover. So if you're not covered, then cancel it!

• 

  dcep on 25/04/2018 - 14:09

  +1

  i think you can't get TPD without death , they're together

  also, default for super is Death & TPD , whereas IP is manual opt-in

  death & TPD in super is usually cheap but not 'useful' for one without family,
  you get work cover compensation if injured at work, or centrelink if TPD

  cancer is the worst and most common, but not covered as TPD, so go figure your risks whether you're more likely to lose an arm/eye or die fighting cancer in deathbed for 5 years.

  IP in super will eat your super big chunk with 30/60/90 days waiting period but still cheaper than getting them 'outside' though tax deductible
  but super IP no longer covers 'own occupation' , meaning not eligible for claim if you can't proof you can't get a job at Maccas even though you're professionals.

  • 

    Cheapskate Paul on 25/04/2018 - 23:58

    TPD is actually MORE useful if you don't have family, as you won't have anyone to look after you for free.

    • 

      dcep on 26/04/2018 - 10:14

      that's where centrelink comes in , you get disability support + pensions + workers for free.

      • 

        Cheapskate Paul on 26/04/2018 - 14:19

        You also have to deal with Centrelink and live on a pretty low income. Not a particularly good option but better than nothing I guess.

  • 

    bobbified on 26/04/2018 - 00:07

    i think you can't get TPD without death , they're together

    It's actually the other way around. You can have death insurance without the TPD insurance, but most insurer's don't allow TPD cover without Death. I've seen a very small number of policies with wording that don't specifically say that you can't have TPD without Death, but the companies have verbally indicated that allowing that scenario wasn't their intention.

• 

  smuggler on 25/04/2018 - 14:57

  +1

  Why do you keep all that crap?

  Just cancel all of it.

• 

  chrisd262 on 25/04/2018 - 18:24

  +1

  Super Account insurance is useless - get rid of it asap.

  • 

    Cheapskate Paul on 25/04/2018 - 20:17

    This is the worst piece of advice I have seen in a long time. Do you work for a bank or AMP?

    • 

      smuggler on 25/04/2018 - 21:46

      Most of it is. INcome insurance is good I guess.

      • 

        Cheapskate Paul on 25/04/2018 - 21:50

        The second worst piece of advice I've seen. You must be a financial planner.

      • 

        smuggler on 25/04/2018 - 21:52

        @Cheapskate Paul:

        STop acting like you're so smart. I haven't had any of that rubbish in 10 years and I'm still alive. I don't even have income insurance.

        The only insurance policies I have are travel, medical, car and home and contents.

        FYI - don't work in finance.

      • 

        Cheapskate Paul on 25/04/2018 - 23:40

        @smuggler:

        And yet you recommend Income Insurance. You are very likely wasting your money on medical insurance. The others you have are the only real necessities, except death and TPD through an industry super scheme.

      • 

        Donaldhump on 25/04/2018 - 23:58

        @smuggler: i haven't had a car or motorbike crash ever, but i still like to have insurance to cover me.

      • 

        Cheapskate Paul on 26/04/2018 - 00:02

        @unclesnake:
        Car/motorbike insurance is a necessity as an accident can result in significant financial consequences without it.

      • 

        Donaldhump on 26/04/2018 - 01:08

        @Cheapskate Paul: likewise becoming disabled and not being able to work again.

        Or even worse dying and leaving a spouse to raise your kids with no income

        Personally I would feel rather selfish doing the latter, so death and TPD insurance are just as necessary, especially given i do a very dangerous job where by people in that occupation die relatively often

      • 

        Cheapskate Paul on 26/04/2018 - 14:13

        @unclesnake:
        My guess is that you are either in construction or you are a truck driver.

        As someone who has recently claimed on TPD I agree with you. It means that I am able to maintain a reasonable standard of living since losing my job due to the disability. The policy was very affordable through my super fund.

      • 

        bobbified on 26/04/2018 - 15:22

        @Cheapskate Paul:

        As someone who has recently claimed on TPD

        Hope you don't mind me asking and I won't blame you if I don't hear back:

        Did you successfully claim on the "own" or "any" occupation definition of TPD?

        And what was your usual occupation before your claim? Sedentary, out-and-about role or labour?

        Some insurers are much more strict on the occupation definition than others.

      • 

        Cheapskate Paul on 26/04/2018 - 15:35

        Any occupation. I had a desk job.

      • 

        smuggler on 26/04/2018 - 19:42

        @Cheapskate Paul:

        And yet you recommend Income Insurance

        Job is secure. Can't be bothered with calling the insurance company up to enquire about it. I work in a high demand industry. Very easy to get a job.

      • 

        smuggler on 26/04/2018 - 19:46

        @Cheapskate Paul:

        You are very likely wasting your money on medical insurance

        Yeah, nah. I like skipping the queues. I don't know anyone who doesn't have health insurance. I'm not a battler.

      • 

        Cheapskate Paul on 26/04/2018 - 20:33

        @smuggler:
        You can skip the queues without PHI. With the cost of the policy plus gap fees it is often cheaper to just pay for private treatment when you need it.

        Have you heard the horror stories of retirees who had PHI for decades, but when they needed a hip replacement, found that the policy didn't include the procedure?

        Insurance is really only worth it if the consequences of not having it could be financially devastating. This is rarely the case with PHI as we have a very good, but not perfect, public health system.

      • 

        Donaldhump on 02/06/2018 - 18:54

        @Cheapskate Paul: fireman

  • 

    Donaldhump on 25/04/2018 - 23:57

    your wife/husband and kids will be stoked when you leave them nothing if you die

• 

  bobbified on 25/04/2018 - 18:51

  I retained the default cover just so that I won't need to jump through the hurdle of having to supply medical information if I wanna re-apply for it if my circumstance changes in the future

  If that's your only concern, then you can get the default insurance cover again when or if you return back to Australia one day and get a full time job.

  If you think your insurance overseas is sufficient, then you can cancel the cover here. Also, check the SCI cover linked to your super - they often transfer your death and TPD insurance across when you leave your current employment, but not usually the SCI cover.

• 

  CheapSticks on 25/04/2018 - 19:40

  You are not a typical super member (overseas) and for most of industry funds cost is a great focus !

  If I was you, I would write to the super and get a written response that you are covered given you are overseas. No harm reading the PDS but best they reply to you in writing so you have something to hand on to incase the situation arises.

• 

  Dont Care on 25/04/2018 - 23:24

  Your policy will be void if you're working overseas.

  • 

    Sensiekatie on 26/04/2018 - 10:52

    The few I have had dealings with are void when you leave that employer and no longer contribute to that fund. You may find being overseas also voids it.

    The death/TPD are interesting. If you are determined to be TPD, then you get a payout and no
    Longer have the death cover. It is one or the other. Interestingly death is a bigger payout.

    I have been made TPD in 2013 and I only wish I had increased my cover from the default.

    Not working since age 50 has had a huge impact on my finances.

    Someone mentioned that if that happens you have DSP. Free carers etc. DSP is a nightmare to apply for and many are refused. Secondly, I get no free care and I ave had to pay for a lot of equipment myself.

    However, NDIS has no copayment, but where I live is one of the last areas to be rolled out. They are running out of money - so I am not expecting anything useful from them either. It is a nightmare to get through all that crap.

    So ensure you have good IP and TPD cover.