Income protection insurance
- Thread starter StuartW
- Start date
Yes - it's crazy. My son doesn't qualify. He's a commercial pilot. How many Qantas, Jetstar, Virgin Blue pilots have died through air crashes in the last few decades?
Actually not a single guy in my large family qualify for IPI.
They are all as fit as fiddles, and in the meantime obese desk jockeys who pig out on fast food and never excercise can get it IPI with the snap of a signature.
Sooooo True!!!!!!!!!!
Leigh,
The bloke that I dealt with was from iselect. I basically requested a quote for IPI online and he rang me to discuss. According to him only MLC do IPI for Police and they cover for only a max of 5 years payments in event of claim. And the longest wait period pre claim was 90 days.
Its probably because commercial pilots have fairly stringent health checks, and even something relatively minor can ground them for either short periods of time, or forever.
So its more a matter of the risk to the insurer for payouts, rather than the risk to the individual.
(I don't know this for a fact...but it seems logical.)
Murphy
can you clarify? is this separate to benefit payment period to age 65?
most super based insurance has a max claim period of 2 years.
Its one of the ways that they can keep costs lower, but dont necc make that terribly obvious.
I have 2 clients that have been on Income protection for more than 10 years, they'd be having issues if they only had inside super insurance
ta
rolf
Just checked my super statement and their PDS. I'm certain it's up to 65 years.
They also have a 2 year or 5 year option but I selected the to age 65 option.
It's with one of the largest super industry funds.
Financial strategy
As a financial strategist, I consider some of the arguments posted here and while they all have their merits, I am concerned that personal advice is necessary for certain products in Australia for very good reason.
If you cannot access a product, you seldom only have second hand or dated information. I also find most investors (and we all are) who fail (in their own eyes) and have a negative opinion have at some time tried to mimic someone else.
Each one os us is so unique, in thought, asset position, risk profile, experience, resources and capability, that no two strategies can be the same even though they may intend to all achieve the same goal. Consider what Pope Benedict said when asked how many ways are there to reach salvation - "As many as the people that have lived".
Some of the steps in our strategic thinking Research, Strategy, Tax & Asset Management, Risk Mitigation, Finance & Investment. A critical part of this is Risk mitigation, and income protection has its place. There are several good options and I suggest getting financial advice on the matter for your individual circumstances. Pay peanuts and expect to work with monkeys.
As a financial strategist, I consider some of the arguments posted here and while they all have their merits, I am concerned that personal advice is necessary for certain products in Australia for very good reason.
If you cannot access a product, you seldom only have second hand or dated information. I also find most investors (and we all are) who fail (in their own eyes) and have a negative opinion have at some time tried to mimic someone else.
Each one os us is so unique, in thought, asset position, risk profile, experience, resources and capability, that no two strategies can be the same even though they may intend to all achieve the same goal. Consider what Pope Benedict said when asked how many ways are there to reach salvation - "As many as the people that have lived".
Some of the steps in our strategic thinking Research, Strategy, Tax & Asset Management, Risk Mitigation, Finance & Investment. A critical part of this is Risk mitigation, and income protection has its place. There are several good options and I suggest getting financial advice on the matter for your individual circumstances. Pay peanuts and expect to work with monkeys.
Income protection insurance or for that matter any insurance should be dictated where in your life you are. Obviously, if one is young with family and has large loan commitments, is the main breadwinner, has young children, than income protection would be worthwhile having, so early in the accumulation phase in wealth building journey.
However, once one is approaching 60, it really depends upon your net worth not just having large loans, right? Then one has so many choices, such as to draw equity, or the portfolio is maintaining itself, or buffers of some cash reserves are in place, or other investments, or could downsize paid PPOR, the kids are older so no school fees, closer to SMSF so could use TTR strategy, etc....
Basically, I really dislike how the insurances are thrown out there in a basket category that ALL those insurances are required for everyone. I have found out that personal circumstances should dictate what insurances one should take out!
Income protection insurance or for that matter any insurance should be dictated where in your life you are. Obviously, if one is young with family and has large loan commitments, is the main breadwinner, has young children, than income protection would be worthwhile having, so early in the accumulation phase in wealth building journey.
However, once one is approaching 60, it really depends upon your net worth not just having large loans, right? Then one has so many choices, such as to draw equity, or the portfolio is maintaining itself, or buffers of some cash reserves are in place, or other investments, or could downsize paid PPOR, the kids are older so no school fees, closer to SMSF so could use TTR strategy, etc....
Basically, I really dislike how the insurances are thrown out there in a basket category that ALL those insurances are required for everyone. I have found out that personal circumstances should dictate what insurances one should take out!
One can insure a burning house for the right premium.
Of course ip et al should be geared to need and not just sold as a blanket policy.
Most hnw peops don't need much in the form of ip
The challenge is that many that think they are in the " not needed" category Are the most needy
Ta
Rolf
Pretty good. Although it's best to go to a (good) adviser or insurance broker to do your insurance, rather than doing it yourself.
There is a special policy for pilots which is why normal underwriters wont touch them. Pilots often take insurance that covers them developing a conditions that grounds them. ie Loss of license = loss of job = loss of career. Its cheaper but covers that fatal issue of no further income. They generally all qualify easily as the medical tests for a license generally mean they are in a fair medical state. There also aren't too many pilots who seek to be grounded so they personally avoid claims.
I found this out when I had to surrender my private pilot license when a drug I took tinted a part of my eye. I now cannot see red on black very well. Its fatal for a pilot not to see red as its the warning colour used in glass cockpit displays. Mind you I wasnt a Cmcl pilot so couldn't apply but is a example of merits of loss of license cover.
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