Life Insurance Cover for Super

[handyandy]

Hi All

It's that time of year again where I need to renew my life cover.

My AMP policy renewal for $1.5mil is $8540.

Just phoned Noble Oak and they are quoting $5200 for the same cover.

A massive difference.

I haven't seen the PDF as yet from Noble Oak and will need to get a copy for the AMP policy so that I can compare coverage.

What sort of money are you paying for your life insurance?

Also any life insurance experience you have had and care to share.

Cheers

 

[Anh]

I am with an industry superfund and on a $1.3 mil cover i pay $130/month before tax as it is deducted out of my super balance.

Ta

 

[yahoo]

Yes we have just gone through this process of changing and saving a similar amount. The problem with stepped policies is they start to increase by a few thousand each year when you get older.

 

[Arnoldus]

Only ever had life insurance through super. Got the best part of 1.2million cover for ~$1800/yr. But the price goes up significantly year to year. Best part is it's set and forget, and I don't have to pay the premium out of my not-so-consistent income.

 

[Joe D]

If you are going to try and make comparisons you really need to state the cover, the premium and your age. Age has a big bearing and I believe a lot of these polices only cover you to age 65.

 

[handyandy]

Sorry meant to mention. I am 58. Don't like to think about it to much and I really don't feel that old

Cheers

 

[roe]

I am self insure

 

[Joe D]

Handyandy

Is your policy limited to age 65?

I believe in having life cover and having cover of $1.5M is fantastic.

However, if your policy is limited to age 65 aren't you betting $5-8k pa that you will be dead by 65 so your estate gets paid out $1.5M versus you hoping that this will never be the case?

I am in my 50s and also have life cover but for a significantly lower cover and premium. In my case I am only covering for a bonus payout to my superannuation beneficiary rather than them having a lotto win and dancing on my grave if I have an early demise!

 

[handyandy]

Handyandy

Is your policy limited to age 65?

I believe in having life cover and having cover of $1.5M is fantastic.

However, if your policy is limited to age 65 aren't you betting $5-8k pa that you will be dead by 65 so your estate gets paid out $1.5M versus you hoping that this will never be the case?

I am in my 50s and also have life cover but for a significantly lower cover and premium. In my case I am only covering for a bonus payout to my superannuation beneficiary rather than them having a lotto win and dancing on my grave if I have an early demise!

Its all fairly academic as we have over $2mil of assets in the super fund.

I took out this policy back in the 90's and it was way cheaper back then.

I don't know at what age the AMP policy terminates but when I took it out it was a long time down the road Seems I have traveled a fair whack of the road

Anyway you cut it, they will be dancing on my grave. Then they will have to go and sort it all out.

Cheers

 

[Scott No Mates]

Andy

it may be worth going to a broker rather than going to the insurer directly. They can access reinsurers and bundle several other risks.

It may be a pertinent time to review your insurance portfolio in total.

 

[geoffw]

Personally I don't see a value in a life insurance policy. I have good assets, about $2m on 20% LVR. If I predecease my wife she knows enough of what to do. If the kids inherit they'll just sell the lot, pay off some debt, and party.

My parents struggled for years to pay off a life insurance policy which psi out on maturity if you were still around. By the time they got it, the value was too small in current value to be hugely useful, and certainly not worth the pain it took to keep up payments.

It was probably taken out in a time of fast talking insurance salesmen.

 

[Crabnet]

Its all fairly academic as we have over $2mil of assets in the super fund.

I took out this policy back in the 90's and it was way cheaper back then.

I don't know at what age the AMP policy terminates but when I took it out it was a long time down the road Seems I have traveled a fair whack of the road

Anyway you cut it, they will be dancing on my grave. Then they will have to go and sort it all out.

Cheers

I tried to persuade my wife to cancel her separate insurance but she said no because she sees value in the disability component.
I''l have to have another go at getting her to change her mind as I think she would be better off contributing those policy premiums into her super and increasing the insurance cover provided by her super fund.

It was probably taken out in a time of fast talking insurance salesmen.

I think they just changed roles and became financial advisers selling their employers products.