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Life insurance

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#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 SusanStoHelit

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.

#6 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.

#7 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.

#8 .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.

#9 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.

#10 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

#11 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.

#12 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.

#13 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.

#14 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

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