[jamdonut]

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?

[Bacongirl]

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

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.

[Sassy Dingo]

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

[cornflake head]

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.

[whoisme]

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.

[pumpkin89]

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.

[123tree]

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.

[slinky]

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.

This post has been edited by slinky: 12/02/2013, 06:00 PM

[.Jerry.]

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.

[Tea-Rex]

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.