Jump to content

Life Insurance OMG
Who are you with?


  • Please log in to reply
35 replies to this topic

#1 Eviesmum

Posted 12 November 2012 - 04:44 PM

The NAB advisor just did a plan for us and I can't believe the size of the insurance premium for hubbys life insurance. IT is $350 a month! THat is with MLC

I am sure it is good cover but we can't afford that much even if it comes out of super it is taking up half the employer contribution.

We can halve the benefit which would just cover the mortgage and keep income protection which would help but I wondered is this the best way to do things? Should I insure outside of super?

Can anyone recommend their insurance provider or give me any information ?

Thanks

#2 PurpleNess

Posted 12 November 2012 - 04:49 PM

All i can say is that it's bloody expensive. Both DH & I have Life  & TPD and DH has income protection, cost us nealry $500 a month. I've thought about ditching it but there is always the what ifs & the peace of mind now we have a young son is worth it.
We are with OnePath.

#3 Madnesscraves

Posted 12 November 2012 - 04:53 PM

your superannuation should have life insurance attached to it. most of them do. it's a bit cheaper too.


#4 Eviesmum

Posted 12 November 2012 - 05:08 PM

FYI

DH
1 million life
500 TDP
4k per month income protect
$300 per month premium

Me
500k life
500k TDP
2k per month income protect
$220 per month premium

OUCH it is MLC

There must be better alternatives


#5 PurpleNess

Posted 12 November 2012 - 05:14 PM

Super won't get you the cover you have described here, not even close.

#6 aprilrain

Posted 12 November 2012 - 05:17 PM

I would advise - ring an independant broker - not one that is tied into selling their own companies products.  They then do a report for you and have to justify why they think certain policies are best for you.

I hyperventilate when I think about our premiums!!! blink.gif

#7 Cat©

Posted 12 November 2012 - 05:22 PM

We have about the same as you, DH pays $180 a month for his (has sep. life and TPD and income protection.) I think his life is only $700k though. His are level premiums thoguh so dotn go up as such (except CPI).

Mine is $600 a year. same amounts as you. I have no income protecition though, and my TPD is only $300k.

We go through Ben Irons at Xlife. My ins is with Commbank, Dh is with AXA and one other cant recall who though.

Edited by Cat©, 12 November 2012 - 05:24 PM.


#8 Allie_D

Posted 12 November 2012 - 05:26 PM

Ours is through our financial planner at the Commonwealth bank (colonial first state). Both DH and I have Life insurance, income protection and TPD. Its around the amounts you said your quote was.

It's not cheap, but for us it means piece of mind because we run our own business.

As the planner pointed out, the coverage that came standard with our super from when we were employed did not come anywhere near to what we would actually need.

ETA- and we also both have trauma insurance.

Edited by Allie_D, 12 November 2012 - 05:28 PM.


#9 qak

Posted 12 November 2012 - 05:35 PM

You could cut out or reduce the TPD cover, because you will be getting  the income protection  payments .it means you would not get the lump sum if you had a event ...

#10 crayons

Posted 12 November 2012 - 06:19 PM

wow with MLC
i pay: $19/mnth for 1mil life
DH pays: $26/mnth for 1mil life

so I don't have TPD or inc protect at the moment though and this is paid through my SMSF

Have you looked at what you are covered for in terms of life in your superfund currently? they may be able to offer you a better deal and let you increase the coverage. Then you can look at funding the inc protect outside of super. Also look at the waiting times for receiving the inc protect that were quoted extending those times as much as you could afford can bring the premiums down.




#11 Lakey

Posted 12 November 2012 - 06:23 PM

We're just starting to go through all this, but we're using a Financial Advisor.

From what I understand the premiums will come out of our Super I think, so it won't actually affect our cash flow.  

May be worth speaking to someone independent.


#12 marley*and*me

Posted 12 November 2012 - 06:30 PM

It is your income protection that it making it that high, not the life insurance. Income protection is not cheap.

#13 Eviesmum

Posted 12 November 2012 - 06:45 PM

I am going to email her. We currently pay the following

Colonial First State
DH
250k Life
250TPD
4k income protection for 2 years
$320 a year

Me
130k Life
130k TPD
Nil income
$170 a year.

I know that it is nice to have the security of the protection but at the price of half our annual super contributions by the employer I cannot justify it.

I will ask her for a new quote raising the life cover to enough to cover the mortgage and keeping the rest as Colonial has it.

A bit peeved as we now owe $660 even if we don't take up her plan. I might switch to the super she has suggested but forgo the life cover if she can't do better. I did a seperate quote with One Path and they were way cheaper.

#14 wannabe30

Posted 12 November 2012 - 06:46 PM

QUOTE (marley*and*me @ 12/11/2012, 07:30 PM) <{POST_SNAPBACK}>
It is your income protection that it making it that high, not the life insurance. Income protection is not cheap.


Not sure about this. My inc protection is with MLC: $110 per month for $8k per month cover. DH is a slightly lower premium for slightly more cover (I cost more to insure because I am a "woman of childbearing age" - go figure!)  Premiums do depend on your age, though.

Agree with a PP if you have life and income protection you probably don't need TPD.

We have life insurance through our super for c$900k each. No idea how much it costs, but pretty sure it wasn't much.

#15 qak

Posted 12 November 2012 - 06:56 PM

But there is a huge difference between income protection that only provides cover for two years compared to age 60 or 65 ... I don't know how old you are but that could be 30 or 40 years!

#16 Phascogale

Posted 12 November 2012 - 07:54 PM

The premiums you pay depend on so many things.

Like someone said, the length of time your income protection is paid out.  Some is for 2-5 years max - others are till retirement (65-67 years).  The career you have will also change your premium ie one where there is a higher risk of injury ie working as a blast person in a mine will have a much higher premium (if they will even insure you) than an office worker, same as if you were working in a job where you are more likely to hurt your back.

Your age also has a big impact on premiums.  You can't compare someone who is 20 with someone who is 55.

The life insurance component is actually the cheap part as you are much less likely to die than you are to sustain an injury.  It's your income, tpd and trauma that's the expensive part.

#17 SeaPrincess

Posted 12 November 2012 - 08:00 PM

Income protection is the expensive one.  I can't remember what we pay for DH's, but it's in that ballpark and I believe the premium is tax deductible.  We have that completely separate from our life insurances.

ETA. I've just read through a few more of the replies.  We went through a trusted financial planner (DH was his best man).  DH's life insurance through his super is $4M, mine is $1.5M, which was the most they would give me as a SAHM and is also paid out of DH's super. He used a calculator to factor in our mortgage being paid out, a certain amount of time for either of us not working if the other died, ongoing costs of childcare and education and various other things.  As our mortgage payout amount decreases and our children get older, we will look at reducing.

R

Edited by shmach, 12 November 2012 - 08:08 PM.


#18 Coffeegirl

Posted 12 November 2012 - 08:06 PM

QUOTE (shmach @ 12/11/2012, 09:00 PM) <{POST_SNAPBACK}>
Income protection is the expensive one.  I can't remember what we pay for DH's, but it's in that ballpark and I believe the premium is tax deductible.


Yep tax deductible as long as it is not taken through your super.  DH's income protection is about $8-900/ year on it's own.  White collar corporate job, but he travels a bit so it goes up.

#19 TheGreenSheep

Posted 12 November 2012 - 08:12 PM

We went though iselect to search out the one that ticked all the boxes for DH and I. He has income insurance provided by work, so only did life and TPD for us.

#20 jayskette

Posted 12 November 2012 - 08:17 PM

QUOTE (Eviesmum @ 12/11/2012, 05:08 PM) <{POST_SNAPBACK}>
FYI

DH
1 million life
500 TDP
4k per month income protect
$300 per month premium

Me
500k life
500k TDP
2k per month income protect
$220 per month premium

OUCH it is MLC

There must be better alternatives


What is quoted here is not JUST life insurance, don't forget!

Also, DON'T settle on the default insurances provided for by your super because ALL of them are nowhere near adequate for actual needs.


#21 Sloane Peterson

Posted 12 November 2012 - 08:28 PM

We recently switched our super and life / income protection / tpd from MLC to an industry super fund (they outsource insurance to a preferred supplier). The insurances are about 1/4 the cost for insuring the same sums, and provided by a reputable insurer (TAL, was TOWER).

Interestingly we did not go through an advisor this time.

It's worth shopping around.

#22 qak

Posted 13 November 2012 - 11:01 AM

QUOTE (Sloane Peterson @ 12/11/2012, 09:28 PM) <{POST_SNAPBACK}>
We recently switched our super and life / income protection / tpd from MLC to an industry super fund (they outsource insurance to a preferred supplier). The insurances are about 1/4 the cost for insuring the same sums, and provided by a reputable insurer (TAL, was TOWER).


But did you get exactly the same level of cover? With the same terms?

#23 JennaJ

Posted 13 November 2012 - 11:16 AM

A NAB adviser is only ever going to recommend MLC products same as a Westpac adviser will recommend BT and OnePath adviser will recommend OnePath.
To get a premium comparison, you really need to see an independant adviser who is not tied to any insurer and recieves the same commission regardless of which product they recommend.
The premiums are based on your ages, health and occupations. Check if the premiums are stepped or level as this will also impact what you pay now and in the future.
If you are upfront and tell them the maximum you are willing to spend on premiums, they will also be able to tailor a package within that budget by changing the levels of cover, the waiting period and benefit period on the income protection and check if they have used an own or any TPD occupation definition (own occ will be more expensive but can also be more valuable).
Trauma and Income protection insurance are the most expensive. Life cover is much cheaper and there are no variables.
Also try to keep all of the covers with the same insurer as you will generally receive multi-life and multi-cover discounts. Some insurers also offer 'volume' discounts i.e. the higher the level of cover, the higher the discount.

#24 Chchgirl

Posted 13 November 2012 - 11:22 AM

I'm with Comminsure through Commonwealth bank and pay about $76.00 per month for $600,000. That's death only I don't have anything else.

My dh was through MLC but it was paid partially by his work and partially through his salary. I can't tell you how much he paid per fortnight but can tell you when the crunch came they paid up pretty good and their claims dept were a dream to work with.

#25 CoFFeELoVe

Posted 13 November 2012 - 12:07 PM

On the topic of life Insurance, anyone here or whose partner works offshore, who do you insure with?

I have found most companies won't insure DH because he works offshore.

TIA!





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Share the little things that make you smile

We're giving away a Mountain Buggy nano, the ultimate travel stroller - and here are some of the great entries so far.

Toddler pleads for return of "stolen" nose

A two-year-old's reaction to a game of "got your nose" shows it doesn't take much to make a toddler cry.

The 15 photos new parents share (and five they don't)

From the first scan photo to the baby covered in cake at their first birthday party, there are 15 photos most parents seem to share - and some they don't.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

Breastfeeding friendly café goes viral

A photo of a breastfeeding-friendly sign in a cafe has been posted to Facebook and shared by hundreds of mums around the world.

First look at the Bugaboo Bee3

The newest Bugaboo Bee ? the Bee3 ? offers a variety of improved features, including a much asked-for bassinet and a rainbow of colour combinations.

Childcare costs, not paid leave, the real issue for parents

Given the choice between maintaining their wage for six months to have a child, or having a reduced rate of pay for a time but a better deal on childcare when returning to work, there are no odds on what most working parents would choose.

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

We lost three babies in two years

Our first pregnancy ended the way we all expected it to - with a healthy, happy baby in our arms. What a true blessing he was, for we were not to know the heartache we were about endure.

Family turned back from doomed flight MH17

'There must have been someone watching over us and saying, 'You must not get on that flight,' says mother who narrowly avoided boarding the Malaysian Airlines flight which exploded in mid-air over the Ukraine last night.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Adorable Skeanie loafers for kids

Your little toddler or preschooler can now get their nautical on with a new range of classic loafers by Australian show brand Skeanie.

My baby is hypermobile

For months, I have been telling myself not to worry that Jasmin isn't crawling or walking. This week I heard the term hypermobile for the first time.

When you don?t bond with your baby

They say that there is no bond greater than the bond between a mother and her child. But for some women, the mother-baby bond takes more time and effort to develop.

Yumi Stynes: Having a baby after a 10-year break

After a long break, Yumi Stynes gets a reminder of the pain - and the pleasure - of giving birth.

Grieving father asks for help to Photoshop his daughter's image

When Nathan Steffel's daughter Sophia died from a liver condition at just 6 weeks old, he reached out for someone to create a beautiful image of his little girl.

Raising kids in a 'low media' home

Can you imagine a life without TV or computers? Some parents are opting for a low-tech, screen-free life for their kids.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

The beautiful moment a baby was born at the side of a road

It's not where she expected to give birth, but mum Corrine Cinatl is delighted that her daughter's roadside arrival was captured in a series of beautiful photos.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

The Nappy Collective starts new drive

It's that time of year when the dedicated volunteers at The Nappy Collective do their bit to help out mums and children in need - and they need your help.

Baby shower cake wrecks

From misshapen cake babies to questionable text, from odd colour choices to internal organ recreation, these are the baby shower cakes that taste forgot.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

Pregnancy progression photo ideas

Want to record your pregnancy as your belly grows? Here are some creative, fun ideas for photo shoots along the way.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Tin can craft and DIY ideas

Got a few old formula, Milo or coffee cans around the house? Use these fantastic upcycling ideas to create items for around the house and yard.

Dads meet their newborn for the first time

Emotional photos of two fathers meeting their newborn son have resonated with viewers worldwide, attracting thousands of Facebook likes and shares.

Skin safety isn't just a summer worry

Lax about the slip slop slap with your kids as weather turns cooler? Here's a reminder as to why we have to remain vigilant for our children?s future health.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

Creative sleeping baby photoshoots

See how some parents and photographers have captured sleeping babies in unusual positions and using different props.

DIY kitchen and food hacks

DIY your way to a better kitchen and make cooking easier with our clever hacks. (Some content reproduced with permission from mashable.com.)

Winter warmers for babies and toddlers

Your baby or toddler will be nice and snug in these beautiful and fun winter pieces. Most are hand-made or knitted, and they're all designed to keep your little one toastie - and adorable!

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.