Different types of insurance/s

[kissfan]

Was talking to my "bank person" the other day and the subject of insurance/s came up. He was recommending me to consider taking out a few different type of insurances, with his organisation of course, lol.

He recommended life, trauma, and income protection for myself and my wife.

I've always been a bit of a doubting Jonah with insurance companies (when it comes to them paying out).

What does everyone think about the different type of insurances?

I feel that the more time goes by, the less insurance I need. Reason being that as my assets increase in value (over time) and debt decreases (over time) that should anything 'bad' happen, hopefully I will be in a good position to pay those unforseen bills.

Re trauma insurance, does Medicare pay bills if someone needs treatment for say cancer treatment or the like? Just wondering if this insurance is worthwhile.

Anyway, I'm rambling again (what's new), just wanted to get opinions on all those 'other' insurances.

Regards
Marty

 

[kero]

Hi Marty,

just to share my story with you:

I justed bought life cover & PUW (permanently unable to work) insurance today with Medibank private. My wife and I are newly wed & i have a couple of loans. Hence, the cover. Medibank Pte has a 30 day cooling period (should be the same for other providers). I think PUW is similar to income protection & trauma except it is paid lump sum.

on the way home, I realised that if I get my life cover with BT (Wespac), I could actually deduct the life cover from my superannuation (BT). I think BT offers the conventional insurances like life cover, trauma & total permanent disabled. So, I made some enquiries with BT and left a message for a financial planner to call me. I'll probably compare both rates & cover before deciding.

hopefully i won't need to use of of it.

happy to hear from others' experience.

 

[Player]

The answer will vary with each person's situations, however ask your self these questions:

If one was unable to work (not a work related injury so no workcover income) and one had no other income, could one service their debts? This includes IP, home loan, car, etc. etc.

Centrelink disability payments are means tested so if one doesn't wish their investment strategy to go out the windowby way of selling down assets, some cover is necessary.

This is not financial advice, however IMHO income protection insurance is a must have and should cover partial disability and preferably occupation defined.

Life cover will depend on the person's age. For example I'm mid 40's and have life cover slightly over and above my IP debt. As I approach 50, and equity builds up, I will scale this back and cease when relevant to my situation. I run my own SMSF and this works well for me and my wife.

Life cover is deductable thru your super and income protection insurance is tax deductable off your personal tax return.

For what it's worth, I would never ever take out income protection insurance with the bank or financial institution I had loans with.

 

[kissfan]

For what it's worth, I would never ever take out income protection insurance with the bank or financial institution I had loans with.

Hi Michael.

Why do you say the above? Do you view it as a conflict of interest?

Regards
Marty

 

[our obsession]

We have a comprehensive life/illness insurance, each with our supers, so it (payment, comes from super=our cashflow less disturbed).

Plus, income insurance, (and life), each with our licenses (horse racing)...I don't want Mr OO lumbered with debt etc all on his own if I cark it, and a little bit for me. More so for him, because I'm actually the nitty gritty investor in this family, do everything, the hands on stuff, he contributes when he can or feels like it, but not the personality type to be left to pick up any pieces. He would be; "oh wtf do I start?"

So important for him to have a clear slate, or near clear slate..

I on the other hand love the scribbling and creating..this is all fun and interesting for me, for him it would be one big headache.

I'm dead, I don't want him having any headaches. Not that I'd know right? but I think you will understand what I'm saying. My final gift for him. No sweat.
Go forth and play and live and enjoy...no debt Red.

 

[Player]

Hi Michael.

Why do you say the above? Do you view it as a conflict of interest?

Regards
Marty

In any climate, and especially moreso in this one, I think the less the bank is aware of changes to one's vocational earning capacity, the better.

With the credit squeeze and softening LVR's, even if one can comfortably service debts, having the same provider for income protection may trigger alarms, calling in loans or re-evaluating one's DSR. They will find out eventually if people are refinancing, or going for new loans, however the less they know the better. Best to be outside their radar.

This is no reflection on their products as I'm not a fin planner. Diversify the vendors I reckon.

 

[kissfan]

In any climate, and especially moreso in this one, I think the less the bank is aware of changes to one's vocational earning capacity, the better.

With the credit squeeze and softening LVR's, even if one can comfortably service debts, having the same provider for income protection may trigger alarms, calling in loans or re-evaluating one's DSR. They will find out eventually if people are refinancing, or going for new loans, however the less they know the better. Best to be outside their radar.

This is no reflection on their products as I'm not a fin planner. Diversify the vendors I reckon.

Uh huh.

Thank you for the reply.

Regards
Marty

 

[kero]

met up with the financial planner today and went thru the necessary insurance to cover etc... then came the shocker! a upfront $600 fees will be applicable if I go ahead with them!!! what the.....!!!!!

 

[travelbug]

My hubby had his own business and had income protection.
Problem was when he went to claim.
The policy stated you must be out for work for 4 weeks before they would pay. AND they'd only pay from then on (not the previous 4 weeks). Pretty useless in most circumstances really.
We had life insurance while we had a mortgage on our PPOR. Now if anything happens there will be the PPOR + some other investments so we cancelled it. Also once my hubby hit 55 the payments went up substantially.