Income / TPD Insurance

[Wirra436]

Hello all.

what thoughts do we have on TPD and Income protection insurance.

with relation to investing, marital status, current work situation

Age: 28
Non Smoker.
Single. No Kids.
Full-Time employee with Woodside Energy Ltd.
Current TPD Cover $100,000 with (CBUS)
Life Insurance $150,000 (Westpac)
No Current Income protection insurance.

Current bank loans $450,000.

Should I re-visit my policies and look at income protection and increase my TPD cover?

What other experiences or thoughts do we have.

Cheers
Wirra

 

[Aaron_C]

The only person who's really qualified to assist on this matter is a financial planner who does insurance policies for clients.

 

[Sheryn]

Wirra


Can you pay TPD, Life Insurance and Income protection as part of your Super if you are with your Employers Superannuation Fund?

Have a read of what insurance is available within your superfund.


Personally I believe all are worthwhile.



Regards
Sheryn

 

[Peter 14.7]

Wirra


Can you pay TPD, Life Insurance and Income protection as part of your Super if you are with your Employers Superannuation Fund?

Have a read of what insurance is available within your superfund.


Personally I believe all are worthwhile.



Regards
Sheryn

I dont think Super including income , which IMP form a property investment view is the most important. TPD and LIFe and life chanign events. Never to work again. Where income is you will work but provide money for the 12 months or so to get back into work.

WIthout it you can lose you investments and be back a square one.

We had all for years when we started investing but are considered clsoing the income as we have business sources now. We have TPD and Life with our Super now and closed the earlier one.

Income Insurance is tax deductible but not TPD or Life FYI

There is good discussion on a thread on this site try the search function.

Regards Peter 14.7

 

[Peter 14.7]

http://somersoft.com/forums/showthread.php?t=75388

And there it is. Peter

 

[Sheryn]

I dont think Super including income , which IMP form a property investment view is the most important. TPD and LIFe and life chanign events. Never to work again. Where income is you will work but provide money for the 12 months or so to get back into into work.
7

Peter, I can't understand what the above paragraph was mean to say?

I Agree that income protection insurance is a tax deduction outside of superannuation but having reviewed 2 super policies lately, often insurance and income protection (usually a maximum of 2 years income protection) are available inside super policies at a reasonable cheap fee.

Basically, what I am suggesting is maximise what is available to you inside your super fund if the fees are reasonable.

 

[Peter_Tersteeg]

Wirra


Can you pay TPD, Life Insurance and Income protection as part of your Super if you are with your Employers Superannuation Fund?

Have a read of what insurance is available within your superfund.


Personally I believe all are worthwhile.



Regards
Sheryn

Yes it can be done, but it could be very detremental to put all your insurances through a super fund, simply because the policies are limited and often the payout could be held within your super until it goes into the pension phase.

Translation: You may not get the insurance payout until you're 55 or older.

Where income protection can be set up inside super, you can only get a policy that pays for only 2 years. To bad if you still can't work after that time.

Basically, what I am suggesting is maximise what is available to you inside your super fund if the fees are reasonable.

This is very dangerous advice and in my opinion is generally incorrect. You should seek professional advice from a financial planner. Superannuation and insurance are complex topics and most people simply don't realise how much they don't understand. The consiquences of a mistake can be substantial.

 

[DaveM]

This is very dangerous advice and in my opinion is generally incorrect. You should seek professional advice from a financial planner. Superannuation and insurance are complex topics and most people simply don't realise how much they don't understand. The consiquences of a mistake can be substantial.

Yes very much so. Like trauma or TPD insurance where you are only partially disabled and the beneficiary is the super fund, since you can work still the funds are locked away until retirement.

 

[devank]

Single. No Kids.
Life Insurance $150,000 (Westpac)

Why life insurance? Do you have any dependants?