Income Protection outside of Super for FIFO

Pandaboss on 27/10/2019 - 08:30

Hi

Looking for IP outside of the super fund, for FIFO worker. For this FIFO workers, who have you tried and gone through?

I have searched and called and only a few do policies for Mining industry.

Looking to get IP to for tax deduction and for proper income cover, as my IP super is not sufficient.

I have tried Noable oak, Had to have combined policy (life,tpd,IP) Only to be told can not be insured due to mining industry.

Going through brokers have given me more choices, such as MLC and Zurich, thoughts?

Financial

Comments

  • JoeSoap on 27/10/2019 - 08:42

    checkout this link before doing any dual income protection as the amount is capped for multiple policies

    https://www.finder.com.au/multiple-income-protection

    you may even be able to reduce your premiums but from what you're saying they aren't able to provide the cover so it should be removed from your super if this is the case.

  • hoey888 on 27/10/2019 - 09:06
    +1

    Being FIFO worker doesn't rule you out of IP cover; however the different insurers will look at your occupation and cover terms very differently. You need to see a financial adviser to go through specifics of your scenario.

    Before committing, you need to understand the concepts and differences of:
    -stepped vs level premiums
    -agreed vs indemnity insurance cover amount
    -paying inside super vs part super/personal cashflow
    -underwritten at application or at claim time
    -loadings and/or applicable exclusions

    Story:

    We had a recent case of a FIFO worker wanting IP cover. Initially was declined being FIFO within mining industry. We later found client was a specialist seismology engineer. Because of employment, income and medical history; insurer was happy to grant insurance cover. It did take some convincing to change his insurance occupation rating which was office based with some occasional field work within underground mine tunnels.

  • StonedWizard on 27/10/2019 - 09:40

    FIFO isn't the problem.

    Depending on what you do in mining you may not get cover and if you do, expect it to be really expensive depending on the risk.

    What is your occupation?

  • Seraphin7 on 27/10/2019 - 12:30

    You should seriously go through an appropriate adviser/broker. Life insurance is a topic I really don't recommend people do on a DIY basis as there's so many things to understand that you need to be taken through. Additionally for your situation, you need someone who can help you navigate the specific insurers … as you've already discovered you're in a "tricky" employment situation where you may benefit from someone who can deal directly with the underwriters, not just the call centre.

  • Pandaboss on 27/10/2019 - 12:50
    +2

    My occupation is a Autonomous Haulage System Maintenance Technician.

    I Doubt they have that listed. I do 60/40, 70% in workshop on the tools and 30% in the office, paperwork etc.

    My trade is Heavy Diesel Automotive Electrician.

    I'm looking to get cover only outside of super for IP. Then i will cancel the IP cover in super.

    The life and TPD side, Yes I will need to seek advice, if I need to get combined with IP I will.

    Think just being in the mining industry or underground rules out as it's more risky occupation.

    Im looking for level premiums only, 29yo now.
    Indemnity as I'm on salary so my pay is always the same every month.
    If optional would like to be covered for my occupation only.
    Benefit period after 30days and until 65.

    • joungs on 27/10/2019 - 12:53

      Rio Tinto?

    • StonedWizard on 27/10/2019 - 13:09

      @Pandaboss - Your title is irrelevant, what we’ll look at is the duties you do. That’s how we rare occupation.

      For mining the biggest issue is if you’re going underground, expect the premium to double easily.

      Is there a reason you’re looking at Level premium over stepped?

      Are you looking for own occ, any or ADL? Most insurers will give you a bundle discount, so you’re better off combining all of them.

      You also need to consider any health issues you may have e.g joint issues, mental health etc as your medical history can/may/will impact the decision by the fund.

      If you’re rejected by the retail funds, consider Mine Super If you haven’t already.

  • Pandaboss on 27/10/2019 - 13:45

    Good to know title means nothing :D

    Level as I prefer a steady bill that I know I can pay off, in the long term it is cheaper. I know stepped is cheap at first but as get older it cost alot more.

    Own occ if available, and yes bundle can get me some good discount.

    No health issues or bad history, I'm not allergic to anything or a smoker.

    Not overweight, 165cm 66kg Male.

    No underground work at all or foreseeable future.

    Last quote I got was $4000pa for IP only it MLC. Occ class was BB? 84/53? Was on a brokers list.

    FMG

    • StonedWizard on 27/10/2019 - 19:05
      +1

      @Pandaboss - Keep in mind prices will probably change, as insurers do tend to change base rate. Have a think if you’re going to stick with the insurer for a long time e.g as you’ll pay more for Level in the short term. If you’re going to change every few years as companies rates change then Stepped may work out better.

      Allergy isn’t an issue, being in a manual rating you may be more susceptible to joint issue e.g back, neck etc. which can impact the decision.

      Just go through a bunch off insurers and see what their offers are, that’s the best bet or get your broker to do a pre-assessment.

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