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Life Insurance OMG
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#1 steppingonlego

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 steppingonlego

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 Three Of Hearts

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 steppingonlego

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 weepingangel

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!





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