Jump to content

Life Insurance OMG
Who are you with?


  • Please log in to reply
35 replies to this topic

#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!





0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Kelly Clarkson shares first photos of son

Kelly Clarkson has shown off the first photos of her son, Remington Alexander Blackstock.

5 childbirth myths that need to be busted

Birth is an unpredictable, mysterious process that intrigues us all, and there is a lot of misinformation out there.

Mum of three fatally shot by toddler while driving

A US mother has been shot by her toddler while driving on a highway in Wisconsin.

All you need is one minute to work out

The seven-minute-work out is old news. Research shows the effectiveness of going hell-for-leather for just one minute.

Pregnant women needed to join diabetes study

Pregnant woman in country Australia will help Adelaide researchers figure out why cases of type 1 diabetes have doubled over the past two decades.

Just announced: the Mountain Buggy Unirider

It's the perfect solution to combat those toddler meltdowns when they no longer want to be in a pram but can't walk long distances.

Authorities euthanise dog that fatally bit a newborn baby

A pit bull mix that fatally bit a 3-day-old infant last week has been euthanised, authorities said.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Why it's perfectly natural to dislike other people's children

Members of a popular forum are fiercely debating whether it is acceptable to dislike a friend's child.

Woman gives birth on plane, names baby after airline

A pregnant woman who unexpectedly gave birth on a flight has named her new baby after the airline, Jetstar.

Heartwarming photos show the joy of adoption after foster care

Children living in foster care can feel like their future is less than clear. But that uncertainty disappears the day they are adopted by their "forever family" 

'Oh my god, it's a baby!' Mum shocked to give birth

When the cramps started to kick in, Klara Dollan just assumed a painful period was starting.

Mum's Facebook plea: 'Help me find my daughter's father'

Kerryn has a unusual present planned for daughter Imi's 13th birthday celebrations - she hopes to be able to be able to give the soon-to-be the teenager her first ever photo of her dad.

Is it possible for your house to be too clean?

Our houses are cleaner than ever before. But how clean is too clean? Could a sterile home be putting your family's health at risk?

Millions of Monkeys: puzzles that grow with your toddler

Here's a puzzle that grows with them; the Puzzle Grow Pack by Millions of Monkeys.

Baby names from Britpop

If you grew up in the 90s you might want to look to the genre of Britpop music for baby name inspiration.

What to eat and drink when you have gastro

When you catch a bug that causes acute infectious gastroenteritis (gastro), your stomach and intestinal tract become inflamed, causing diarrhoea, nausea, vomiting, abdominal cramping and pain. The last thing you probably feel like doing is eating.

'To this day, I owe her my life'

Would I have survived if I hadn't crossed that street?

Why baby Sonny needs you to vaccinate your children

Caitlin is a firm believer in the importance of immunisation to protect children from harmful and deadly diseases.

Five-year-old's photo captures beauty of motherhood

There is no make-up or special outfits and hairdos, but the five-year-old boy who took this picture captured the essence of motherhood as well as any professional photographer.

Babies know whether you are naughty or nice

Studies have shown that infants in the first months of life try to avoid dealing with social wrongdoers - for example, sharing less with them and helping them less - and they expect others to, too.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

The babies who are one in 70 million

Bethani Webb was excited to find out she was pregnant, but the first time mum did not realise she was carrying four babies not one.

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Cafe offers breastfeeding mums a free cup of tea

A Sydney cafe is offering breastfeeding mums free cups of tea in a bid to show support for the right of women to nurse their babies wherever they choose.

To snip or not to snip? When the decision is not clear cut

Jamie Oliver, who considered a vasectomy, is to be a father again. A fellow dad reflects on his own decision 11 years ago

Doctors stunned by rare twins born almost six weeks apart

To everyone's surprise, Kristen Miller "kept doing better each day", keeping her second baby safe.

Baby book ideas for modern parents

Before my son was born I was given a lovely baby book full of blank pages waiting to be filled with weights and heights and first words.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

Mum tells how toddler 'nearly hung himself' in cot mishap

When Alison Johnson put her 18-month-old Caleb down for a nap, she had no reason to believe her son was in any danger.

Babies are still switched at birth? Yes, it can happen

All my panic and tears aside, my biggest question looking back is about the kind of security measures used in the maternity ward.

Doctors slammed for taking selfie with newborn

Everyone who visits a mum in hospital in the days following childbirth wants to get a photo with the new baby.

ergoPouch Twosie Sleepsuit for winter breastfeeding

Finally, there's a way to keep warm while breastfeeding through winter.

Health check: How long does sex 'normally' last?

What to do with this information? My advice would be to try not to think about it during the throes of passion.

When breastfeeding sucks: fixing common problems

From niplash to tight boobs, biting to milk supply issues, Pinky McKay looks at common breastfeeding issues and how to solve them.

10 things I've learnt in my first six months with twins

Six months on we're all still alive, and the more we get to know each other the easier the days become.

Mum's loving kiss leaves baby fighting for life

Kirsty Carrington thought nothing of giving her newborn son a kiss, little did she know it would leave the baby fighting for life.

When doing chores is your new 'me time'

After children, 'me time' looks a little different.

Get going: 14 travel strollers for families on the move

A stroller can make or break travelling with a baby or toddler. Here are 15 great single travel stroller options.

10 ways toddlers are terrific

It always pays to remind yourself of how terrific toddlers can be - they're little like this for such a short time

 

ENTER NOW

Do your kids love bananas?

This is the comp for you! We have $800 worth of Myer gift cards and boxes of Australian Bananas to be won. Entry is simple: just post a pic of your little one enjoying a banana in the comments of the FB post to enter.

 
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.