Hi
So i've experience quite a few deaths this past year (close friends to acquaintances) and it definetly has me thinking about the future for my family and everyone around me. I work in a cemetery, so my first thing is to organise everything related to a funeral first (buying cremation etc) so thats one less worry for them if i ever kark it. My next task is to properly organise a will and the final is life insurance.
My current provider (Vision super) has life insurance offered, and looking in detail, it is underwritten by MLC. I've been reading the PDS etc, but when googling alot of people are posting negative comments about super run life insurance compared to retail. Can anyone offer any advice.
P.S: Dont worry about commenting about how its a waste of money etc, when you need it, its too late. Im conservative and like to know my family will be looked after.
Thanks heaps!
First off you're better off speaking to a good financial adviser (someone who's actually going to guide you and not a cowboy). They'll be able to recommend the right product for your needs, advise you based on your medical history but the most important thing is, should you ever need to claim your adviser is there to guide you along the process and organise things for you. I know they've copped a bad reputation recently and there are absolute drop kicks and scum out there but if you find a good adviser they are definitely worth their fee. I can't stress this enough.
Assess how much cover you need, but also look at getting some quotes on a higher sum insured, as most insurers give you a large sum insured discount, so taking a higher sum insured can sometimes equal a lower premium. E.g. $499k is a lower discount than $501k so it is cheaper to take out $501k. This is only with sum insurers so double check with them.
If you're conservative and want to make sure you're family is looked after i'd suggest going through a retail policy. Not only is it easier to deal with for a payout should anything happen, the policies are generally of a better quality. Super policies are generic and designed a mass group of people (hence the lower price) but the issue is if you have to claim you're bound by super legislation and up to the trustees. Retail is a lot more straight forward.
Compared to other insurances Life for retail isn't that expensive as the insurer is only assessing you on how likely you are to claim e.g. you get a terminal illness or you die. So pricing is pretty sharp for it.
OP just also remember you have a duty of disclosure, a lot of people don't seem to realise this and think something isn't important and don't disclose it. When to the insurer it can be. The last thing you want to do is have your loved ones having to fight them should anything get denied. Be honest and transparent and you'll have no issues during claim time. A good thing to do is obtain your medical records from your GP and have everything in front of you ready to go. Less chance for a non disclosure and it will make sure the information you provide is as accurate as possible.