Jump to content

Life insurance


  • Please log in to reply
14 replies to this topic

#1 jamdonut

Posted 12 February 2013 - 02:14 PM

DH and I want to organise a life insurance policy to cover both of us. Any tips on how to find a good policy? Tricks or traps to be wary of?

#2 Coffeegirl

Posted 12 February 2013 - 02:31 PM

We're with Zurich.

Sit down and work out how much you would need to pay off your mortgage or at least live on without the insured's wage until your kids are 18.

DH is insured for more than I am. Mainly because he earns 5xs what I do.  So we get enough to pay off the mortgage in full then 1/2 again. DH also has trauma insurance.

Where I am only insured enough to clear the mortgage, because DH earns enough to cover a nanny or housekeeper. Not that I am just that in our marriage Tounge1.gif

DH is also ensured seperately through hos company as part of his contract. So if he dies on a work trip, I get another amount through that.

Read the policies carefully. Some will cover a lot less than others but charge more.


#3 Sassy Dingo

Posted 12 February 2013 - 04:35 PM

You could also check out your superannuation too, I have automatic life insurance through there.

#4 cornflake head

Posted 12 February 2013 - 04:38 PM

I went through i-select, who compared heaps of providers in relation to our situation/what we wanted and came back with the three most competitive prices for us.

I had this reviewed last month by a financial planner and she agreed that we are getting the best deal we can for what we get.

#5 whoisme

Posted 12 February 2013 - 04:51 PM

As Sassy Dingo said....our Life Insurance premium is deducted from our Superannuation.

For us it is not a matter of how much either of us earn, but the cost of living, schooling, the cost of paying off any mortgage or loans and also how long will the surviving spouse be out of work for in order to go through the grieving process?  

There are many surviving spouses who never return to work as they feel their life isn't worth living, or it is just too hard for them now their life partner has passed away.

We have life insurance of $1 million, for each of us.

#6 pumpkin89

Posted 12 February 2013 - 04:58 PM

We saw an insurance broker. We went in knowing a rough idea of how much we would need to live off (debts, living expenses etc.)  Be wary of life insurance plans with your super. According to the broker we talked to they usually pay a pittance in the event of a death (particularly if it was non-work related). Also, they rarley cover for injury / disability. He said in his 20+ years in the industry he has never seen a successful claim under the permantent disability clause on a super policy.

#7 123tree

Posted 12 February 2013 - 05:07 PM

Someone I know had three kids and was a SAHM.  They lived in a house near his parents that was actually owned by his parents.  

The three children and her were the beneficiaries.

He passed away suddenly and therefore his income stopped immediately.  She was still able to live rent free but the way the life insurance money was divided up she only got a quarter and the rest went to the kids and is being held in trust for them.  She receives an "allowance" to look after her own kids and pay for the school, food etc.

The youngest child is too young for her to go back to work and she has been out of the workforce for a long time anyway so her options are limited.

So here is the thing. When she felt ready to move out of their house and go buy something elsewhere she didn't have enough money to buy one, but if she had been the sole beneficiary she could have easily.

My husband and I have made sure that this is not going to happen with us.  I get the lot.  Besides, I will have the best interests our our children at heart too.  

Just my opinion but something to think about.

#8 slinky

Posted 12 February 2013 - 05:59 PM

We have just gone from paying Life Insurance & Income Protection as an extra bill to now revewing and increasing what is offered on our Supperannuation. Its a huge cost saving for us.

Edited by slinky, 12 February 2013 - 06:00 PM.


#9 .Jerry.

Posted 12 February 2013 - 07:45 PM

I have just come from reading the fine print in my superannuation insurance.  It's the only one I have, so I was just checking a few things.
I am comfortable at the moment with just the superannuation life insurance component.
DP doesn't have any (unless it is in his insurance), but little would change financially should the worst happen to him.  I earn enough to maintain our current lifestyle.

#10 For Fox Sake

Posted 13 February 2013 - 12:17 AM

We actually had a meeting with an insurance broker tonight. We had no idea that DF has life insurance and income protection built in to his super.
Both are for around $120,000.
We have decided to increase the cover to a more realistic amount, add trauma cover and self fund the premium increase.

#11 neyrie

Posted 13 February 2013 - 01:40 PM

You can increase the amount you are covered for in your super, 1 of my super funds only has me worth $121000 but another has me worth $211000!! Also, I suggest thinking about "binding nominations" on super funds to stop potential squabbling about who it is to go to. If someone wants a claim on it the dispute can drag on for months, been there done that sad.gif





#12 Lainskii

Posted 13 February 2013 - 05:31 PM

QUOTE (neyrie @ 13/02/2013, 02:40 PM) <{POST_SNAPBACK}>
Also, I suggest thinking about "binding nominations" on super funds to stop potential squabbling about who it is to go to. If someone wants a claim on it the dispute can drag on for months, been there done that sad.gif



Not all funds/products offer binding nominations, so ensure you specify super separately in your will as this will usually be taken as what you intended by the fund (though they don't have to). It is a good idea to complete the binding nomination if the fund has one.


#13 IsolaBella

Posted 14 February 2013 - 09:32 AM

This thread reminded me to follow up DH on his Super Nomination for Life... Said he had signed Binding nomination and sent it off yesterday. Interesting item he noted was that you have to RE nominate every three years or defaults back to standard.



#14 neyrie

Posted 17 February 2013 - 07:32 AM

Lainskii I had no idea some didn't offer binding, all mine always have and I've had a few lol.

I've been told not to mention your super in your will at all as it is considered separate from your estate therefore can't be used towards any debt or anything. A way to keep money for kids if you know your estate will go to paying off debt.





#15 MrsLexiK

Posted 17 February 2013 - 07:57 AM

Hi OP see a broker. They will tailor something that suits you. I generally wouldn't recommend Income protection in super - it won't pay if you are just sick it will only pay if you are TPD'd if it is held with another company outside of super you will normally have sickness cover and most offer one of payments for things like broken legs, cancer even if you don't meet the waiting day period (the time you are not working)

Life insurance seems to be paid easier when it comes from say Zurich or AMP etc then when it comes from a super company. They will normally release funds to help with immediate costs. I have had one client have an issue and this was due to the will not being granted probate.

If you are the owner of the policy the money will go to yourself, without question.(but you can't do this if it is under super because the super company is the owner) If you have no binding nominations it will be paid as per your estate.

If you would like more specific answers PM or ask here original.gif




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

How I learnt to relax about routines

After many routine-led, tough years, we've realised that being parenting isn't about being perfect. It isn't about following a schedule to a T.

Should you have a third child or not?

I thought our family had been complete with our two boys. I had no idea how much I needed my daughter until she was here.

Helping a toddler embrace an adopted sibling

A single parent by choice, I am preparing to adopt a second baby from Morocco. And I face a special challenge.

When pregnancy messes with your self-esteem

Pregnancy doesn't make all women feel beautiful. It certainly doesn't raise every woman's self-esteem.

Join us in The BIG nappy change

Introducing the new Coles Little Explorer Nappies! You can confidently rely on Coles Little Explorer nappies at each stage of your child's growth, so take the Big Nappy Change and try new Coles Little Explorer nappies for yourself!

Robbie Williams live tweets wife's labour

And the award for most patient woman in labour goes to ... Robbie Williams' wife, Ayda Field.

Vaccine ignorance is deadly and contagious

In the absence of credible, strong political leadership, paranoia about disease can go viral.

Parenting differently based on birth order

All children have unique personalities, but keeping birth order in mind could help when parenting.

How to get rid of the mum guilt

Motherhood and guilt seem to go hand in hand, but there are ways to focus

Paid parental leave scheme grinds to a halt

The future of Prime Minister Tony Abbott's paid parental leave scheme appears to be up in the air, despite the fact it is due to begin in less than nine months.

The devastation of foetal alcohol spectrum disorders

No one's sure how many Australians are affected by foetal alcohol spectrum disorders, but the consequences for those who are can be devastating.

The pros and cons of finding out the sex of your unborn baby

It’s often one of the biggest choices parents make during the course of their pregnancy; to find out, or not to find out, the sex of their baby before it’s born.

Toddler's awesome dress up month

Two-year-old Willow and her photographer mum, Gina Lee, made October "Dress Up Willow Month". She posted photos of Willow's costumes on her Instagram account, and her creative takes on popular culture are simply adorable.

Childhood around the world

It can be easy to assume our ideas around childhood are universal, but they are particular to where we live, as these practices show.

Best picks for baby and toddler shoes

Here's a great selection of footwear from pre-walker to walker ensuring comfort and style for growing feet.

I lost my wife and daughters to Ebola - then it came for my son

Sunday, September 21, is a day I will never forget.

The 'yucky' illness that took over my life

I have a chronic illness nobody likes to discuss. It involves toilet talk, and probably caused my miscarriage. But it needs to be talked about.

Prenatal testing: the facts

Prenatal testing is done to check if a baby has certain medical conditions before birth. Here is some important information about what the tests are for and the risks involved.

5 things to do with your baby?s old clothes

Did you think your only option for your baby?s old clothes was to pack them away or give them to the Salvos? Think again.

Why it's possible to not realise you're pregnant until the baby arrives

After hearing about 'surprise babies' born to mums who didn't know they were pregnant, it's common to ask "how did she not realise?" But experts say it's entirely possible for it to happen.

'My miracle is finally here'

How has the world continued on its pace when mine has been altered so drastically?

Dairy can help older women fall pregnant: study

Ice cream may be the ultimate comfort food, but a study suggests it could also help older women to have children.

Megan Gale goes topless for 'sexiest people' cover

Six months after a heavily pregnant Megan Gale posed nude for Marie Claire, the glowing new mum has gone topless for the cover of another magazine.

A new perspective on life from living with two diseases

A mother shares her personal story about the difficulty of living with two conditions, one of which stops her from being able to see her daughter's face.

Warning about Children's Panadol dosage

The Therapeutic Goods Administration has issued a safety advisory warning parents about confusion when using the dosing syringe supplied with Children's Panadol.

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

Take 'The Coles Big Nappy Change' Challenge

You could become part of our Test Drive team and win one of 200 packs of Coles Little Explorer Nappies as part of our 5-day challenge.

Win 1 of 5 Canon Powershot D30 cameras

Capture life more easily with the Canon Powershot D30. Shockproof, waterproof and dustproof, you can take it almost anywhere and shoot beautiful images, time after time. Enter now!

16 parenting truths you won't find in the baby books

I am five years into this parenting gig and I’ve learnt that sleepless nights and changing dirty nappies are child’s play.

Best and worst potty party cakes

It's nice to celebrate a child making the shift from nappies to 'big kid' undies, but do we really need a semi-realistic used toilet cake to do it? Here are some of the best and worst cakes parents have used at 'potty parties' around the world.

7 tips for a financially festive Christmas

Plan ahead - and do it now - to ensure festive season expenses don't break the bank.

'Go the F*** to Sleep' author's new book for frustrated parents

A sequel is coming soon to the 2011 hit book 'Go the F*** to Sleep' - and this time, it's about mealtimes.

Great birthday party buys from Etsy

Handmade crafts to decorate and personalise your child's next birthday - from banners to cake decorations, we've got gorgeous party finds from Etsy.

Join us in The BIG nappy change

Introducing the new Coles Little Explorer Nappies! You can confidently rely on Coles Little Explorer nappies at each stage of your child's growth, so take the Big Nappy Change and try new Coles Little Explorer nappies for yourself!

Creative storage ideas for the kids' rooms

Creative and practical storage ideas for the kids' toys and books can also add some stylish decor to your home. Visit babyology.com.au for more stylish modern finds for hip kids & parents.

Weird trend

Couple has five babies in 14 months

Julie and David Grygla weren't sure they'd ever have kids - but their dreams have now well and truly come true.

To the mum in the doctor's waiting room

Maybe the mum I saw in that waiting room, seemingly disconnected from her baby, doesn’t have the support she needs.

10 space-saving nursery ideas

Starting a family doesn't always mean moving into a bigger house - not yet, anyway.

 

What's in a name?

Baby Names

Looking for a classic name, or an unusual name? Our Baby Name Finder is for you, search or browse to refine your shortlist.

 
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.