Can you negotiate Life Insurance premiums?

saxlady on 18/05/2022 - 22:56

My previous employer had insurance as part of the salary package, the new one doesn't so I'm looking around.
I'm looking for income protection and life insurance. (I've already spoken to a financial advisor, these are the only two I need and we both agreed I'd be better off just finding my own policies.)

A number of places I've called will offer a discount for having both policies and a further discount for paying annually. They do seem ask how it compares with other quotes I've received, which makes me think perhaps they are likely to negotiate to beat other policies? And if so, what does that mean the following year - I gather premiums would rise automatically - does that mean it would make sense to call around and check quotes and consider switching again? Like with building, contents, car etc?

Thanks for any advice

Financial

Comments

  • boomramada on 18/05/2022 - 23:14
    +1

    Isn't that usually comes with your SUPER?

    • resubaehtgnolhcs on 18/05/2022 - 23:16

      Only if you choose to have it

    • deme on 19/05/2022 - 09:16

      Doesn't have to you can buy it yourself and it is tax deductible that way

      • blocky27 on 19/05/2022 - 09:43
        +1

        The only deductible insurance is income protection

    • Seraphin7 on 19/05/2022 - 09:39

      Depending on your circumstances, there are reasons to either have it in super, or outside of super. Either is entirely "acceptable" dependent upon those personal circumstances.

      • SlavOz on 19/05/2022 - 10:19

        As a general rule, if you decide you need life insurance to protect your family after you die, group cover through your super usually isn't enough. It won't really help your family maintain their standard of living.

        Friend of a friend recently passed away fairly young. His wife and kid and were left with around $200k from his super life insurance. That's a nice pay day but realistically it's only about a year worth of combined salary between both of them. So what happens after that? They officially start losing money as only the wife is able to work. Kid needs 18 years of support…do the math.

  • Seraphin7 on 19/05/2022 - 09:44

    As I always say … you can attempt to negotiate on anything … whether or not the other party is equally willing to negotiate is an entirely different question.

    One of the roles of your adviser is to effectively negotiate on your behalf. Be aware that retail life/IP policies can have materially different terms/underwriting conditions, etc. that you need to have both the time to work through in detail and the ability to understand what those detailed differences are.

    As someone who professes to know a couple of things about financial services, this is arguably the most complex area of retail financial services … it's the one area where I generally suggest people engage the services of a professional to assist.

  • saxlady on 19/05/2022 - 18:43

    Thanks all - guess I'll just chat with them and see how it goes

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