Hi, does anyone have any recommendations on who to go with for life insurance?
Another kid on the way so prob best to get this sorted before I turn 40. Also how much roughly would a premium be if I insured my life for say $800k?
Best Life Insurance for under 40
Ltiapa792 on 31/07/2020 - 08:34
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I do have life insurance but I am not sure how good they are as I am still alive typi……….
i've kept my life insurance with my super, but upped the value. 2 kids, mortgage, my financial planner said i should be insured for about $1m
you their bro ! you there >:
Why you need life insurance ?
Many people I know get life insurance because they are generally in the family have huge mortgage which requires two incomes, expensive school fees etc.
(So if one income disappears to illness or worse, then they would need to make huge change to lifestyle).I kinda get where that question is coming from. Personally would not get life insurance.
Is that even a question? The reason we are getting life insurance is for our family in case something happened to us. We want something for them on the table.
If you have a mortgage and kids it would be silly not to have life insurance. Otherwise your family will probably be struggling to get by if something happens to you. I'll probably cancel mine once the mortgage is cleared, but within super it's costing about $150 a year for ~$500k of life insurance.
It in your Super Fund. You can set the $$ amount you want.
I am pretty sure it is safer than a company that only sells life insurances..
NB there are no Super funds that run their own insurance except for fed govt, they always contract to an external insurer and get a unique contract for their members, which they will make a profit on. The contract may be better or worse than what is available directly from the insurer, based on terms, cost, industry, profit margin, etc EG most of the industry funds use AIA, MetLife, OnePath, TAL as their insurers. No safer dealing going through the Super fund, they have no spare cash to honour claims if the insurer cant pay, which they always can, they have billions of ready cashflow, reserves and reinsurers to cover them.
I just use mine throug my super, potentially better options out there .
I recently tried to increase mine from 750k to 1m…was rejected due to a shoulder injury (I work in IT), with the intention of slowly reducing insured amount as I get older as the premiums go up.
When you suddenly have a few people around your age group die unexpectedly suddenly life insurances seems like not such a bad idea.
I can understand income protection changing due to a shoulder injury but seems like madness that life insurance got rejected! Seems like they don't want more money from you!
Physical impairments will very rarely impact on Life insurance risk, either there was something else or they got it wrong, ask again or go somewhere else for your top up cover.
Life insurance is user specific. As it depends on your own situation.
There are bundle discounts and discounts if you’re considered healthy.
It will depend on your circumstances and how long you would like to keep your policy in force for.
You can have a variety of premium structures within a life insurance policy. I have listed the three main ones as per below:
Stepped premiums - Usually cheaper in the short term but the fees go up as you age.
Level premiums - Usually you will pay less if held over the long term and the base premium will remain the same each year until a certain age which is dependent on the insurance provider. It is usually around age 65. The premiums are higher compared to stepped during the short term. However, Level premiums usually win out right over the long term.
Unitised premiums - The premiums usually stay constant, but the insured amount/benefit amount may decrease over time.
As for product providers you would need to do a product research in order to know a price competitive policy. In addition, you would need to keep in mind that you want to factor in a policy that offers comprehensive features, benefits and definitions that suit your needs.
You would need to factor in funeral costs, educational expenses for your children, debt repayments, income replacement to cover living costs and medical costs etc… In addition, you might have assets or passive income that can offset the amount of insurance you require.
I work for a boutique financial planning firm as an administration assistant that help people with insurances including Life, TPD, Trauma, Income Protection and Business Insurance. I am more than happy to refer you to one of our financial advisers that can help cater to your insurance needs and conduct an in depth insurance research for you. Shoot me a direct message or comment on this message and I can pass on their details.
M39 NS std occupation, std health L800k = ~$450 pa, currently ~$1000 at age 49. Thats for retail cover (medically underwritten, guaranteed renewable, terms cant be diminished) with commission included ($340 pa without). You may be able to do better via a Super fund but I doubt it, they can be cheaper at lower levels but dont discount for higher sums insured, and generally more expensive now for men regardless, women often can still be cheaper. The policy will also be 'group' insurance so no guarantees, rates and terms are generally less and can be changed at will, usually has preexisting health exclusions. Your main problem will be that due to changes in financial advice requirements, it is not profitable for an adviser to provide specific advice on a $450 pa policy, when their min cost is at least $1650 - the commission at most is $250. So you either pay the min fee, get the insurance as part of other financial advice you are paying for or DIY via direct online or industry super products, both of which are substandard to retail, and often no cheaper. Good luck and congrats on the new addition
As mentioned it kind of depends on your circumstances, but there are three ways to buy life insurance - retail, direct, or through your super. They all have their pros and cons, so it's important to know which one is right for you, before you make your decision.
Retail: Buy from a broker. Tailored to your needs. Medical underwriting.
Direct: Buy online or over the phone. Little or no medical underwriting.
Super: Acces via your super. Typically automatic acceptance. No upfront costs, but withdraws from your retirement funds.(More info here https://www.finder.com.au/life-insurance/best-life)
do you already have life insurance? not even though your Super fund?