Insurance - Life/TPD/Trauma

[btc]

hi,

As part of the wealth creation planning, insurance is/may be important. I have spoken to 2 insurance brokers, but they presented a complete different package and advice, one says do it in super as its cost effective, and the other said don’t as the policy definition is very poor within super. Now I m confused but not wanting to make the wrong decision as it may be more costly/difficult to change/ get new policy when I am older.

Also, i found it is critical to get cover from quality insurance company, but not sure which company is good.

So I m hoping to get some advise on structure, which insurance company, and possibly a recommendation of a good insurance broker in perth.

Thanks in advance
BTC

 

[APerry]

Hi Btc,

You can't get Trauma cover in super and there is not much room for differences in policy definitions for life insurance. So your only real issue is TPD and income protection. Because Income protection polices are generally tax deductable, it is often more cost effective to have these outside of super. TPD policies do vary widely so you should probably make sure you understand why you are being advised on particular TPD policies, as a general rule the more general the definition of what constitutes a total and permanent disability the more expensive the policy, as that insurer will necessarily have to pay out more claims.

With regard to strength of the various insurers, they all have credit ratings and many such as AMP, MLC, CommInsure etc are household names or subsidiaries of banks. You can probably make a pretty good judgement call on their ability to pay claims yourself.

I hope this helps.

Regards
Alistair

 

[Shaneelastic]

Hi Btc,

You can't get Trauma cover in super and there is not much room for differences in policy definitions for life insurance. So your only real issue is TPD and income protection. Because Income protection polices are generally tax deductable, it is often more cost effective to have these outside of super. TPD policies do vary widely so you should probably make sure you understand why you are being advised on particular TPD policies, as a general rule the more general the definition of what constitutes a total and permanent disability the more expensive the policy, as that insurer will necessarily have to pay out more claims.

With regard to strength of the various insurers, they all have credit ratings and many such as AMP, MLC, CommInsure etc are household names or subsidiaries of banks. You can probably make a pretty good judgement call on their ability to pay claims yourself.

I hope this helps.

Regards
Alistair

You can get trauma in super - just gotta know how to do it

 

[Ausprop]

You can get trauma in super - just gotta know how to do it

even if you could, why would you want to?

 

[Shaneelastic]

even if you could, why would you want to?

Pay off an instalment warrant debt

Have the capital inside super so it is subject to little or no tax?

 

[Ausprop]

isn't the point of it that you need the money to recover from your trauma?

 

[Shaneelastic]

isn't the point of it that you need the money to recover from your trauma?

there are two ways of accessing the cash as well from super.

 

[ashalim]

I've got all the above insurance in Super with AMP...not sure how good they are tho because I never had to claim *fingers cross I never will*

Might move it out of the super and go with ING...Cannex gave it pretty good ratings.

 

[btc]

Thanks guys for posting.

Looks like i need to some more research and reading before i decide which insurance company to go with and stucture.