What type of (non car) insurances do we need?

Pepscobra · 25-04-2016, 10:04 PM

So I had a bit of a scare recently. Nothing happened from it, but it made me realise that I may be grossly under-insured.
I'm in my late 30's with three kids.

I've never had Life and/or Income Protection Insurance; what do these insurances cover exactly and what do they do for me/my family in the event I die or can not work for any extended period of time?

Appreciate any info/advice from any experts in the field or anyone who has recently looked into the same thing.

Thanks in advance.

The Yeti · 25-04-2016, 10:57 PM

I have life and IP

But policies arnt all the same some IP only covers a sort period others longer, I set mine up so it doesn't come in for the first 12 weeks but covers me for a longer period eg if I get Real sick or injured

It's NOT cheap so you need to decided what YOU and your family need and a car forum really isn't the place for advice

Pepscobra · 26-04-2016, 12:02 AM

Quote:

Originally Posted by The Yeti

It's NOT cheap so you need to decided what YOU and your family need and a car forum really isn't the place for advice

No, I totally get that and you're probably right.
It's just I have really no idea what they do/cover so just wanted a bit of a laymens explanation before I made contact with an insurance broker and got sold something I didn't need.

Are these type of insurances normal to get?
What age to people generally look at these insurances?

**PG2** · 26-04-2016, 01:05 AM

Quote:

Originally Posted by Pepscobra

No, I totally get that and you're probably right.
It's just I have really no idea what they do/cover so just wanted a bit of a laymens explanation before I made contact with an insurance broker and got sold something I didn't need.

Are these type of insurances normal to get?
What age to people generally look at these insurances?

I have both. Had them for years.

As stated they are not cheap and will depend on your lifestyle and job etc.

As also stated, it is very hard to give advice on these types of insurances, there are too many variables.

The only advice I can give is to shop around and read the PDS carefully. Otherwise ask someone you can confide in and trust to help you.

nstg8a · 25-04-2016, 11:17 PM

Since I'm a kiwi living here I know I have no welfare safety net so I've had income insurance since I moved here.
It's not cheap,,but it's not that expensive either and considering what I stand to lose if I had no income it's a cost I'm happy to pay for peace of mind.
Now that I feeling old and decrepit I'm going to start looking at decent medical insurance.

LG17 · 26-04-2016, 07:24 AM

A number of superannuation policies have income protection as part of their deal so you may already have it.

The Yeti · 26-04-2016, 08:39 AM

Quote:

Originally Posted by LG17

A number of superannuation policies have income protection as part of their deal so you may already have it.

My super doesn't have IP but does have life, I've chosen to top it up to cover my debts and stuff so if I drop off the twig my life and family don't have to worry about paying the mortgage to keep a roof over their heads

Like wise my IP doesn't cover me for 12 weeks but covers me up until my super kicks in at 80% of my current salary And increases with CPI

My biggest fear is again something happens where I can't work and my wife has to cover all the bills

^^^^

This. If you die leave no debts for your loved ones.

Insurance is the biggest waste of money until it is the best money you ever spent.

LG17 · 26-04-2016, 09:21 AM

Quote:

Originally Posted by The Yeti

My super doesn't have IP but does have life, I've chosen to top it up to cover my debts and stuff so if I drop off the twig my life and family don't have to worry about paying the mortgage to keep a roof over their heads

Like wise my IP doesn't cover me for 12 weeks but covers me up until my super kicks in at 80% of my current salary And increases with CPI

My biggest fear is again something happens where I can't work and my wife has to cover all the bills

My super had both. Income protection was at 90% with only a 2 week waiting period. You had to exhaust your sick and long service leave first but that was ok. It was a massive boon to me after accidents at work, after Workcover ran out of course.

Pepscobra · 26-04-2016, 10:04 AM

Sounds like selecting the right Super fund could help me cover my Life and IP concerns also... Which Super funds are you guys with please?

LG17 · 26-04-2016, 10:46 AM

I'm with QSuper.

PHANTMXR6 · 26-04-2016, 12:39 PM

I have two super funds.

RioTinto super and MTAA.

Both have life insurance policies attached.
My fiance also has some sort of cover for us with Insurance line as well, but not sure if that's just a funeral cover or something more.

XB GS 351 Coupe · 26-04-2016, 01:29 PM

It's up to you what you need (want) and what your work provides.

I have income protection through work, as well as life insurance, so if I die from any cause at all I am covered to a certain degree (enough to pay out any mortgages and loans I may have as well as funeral costs)

If I die at work while working my cover/payout is higher, but none the less I am covered 24hrs a day seven days a week.

Before getting any cover you need to make sure it covers you, some may cover accidental death but not disease/medical issues, some may be the other way around, while others pay more under certain circumstances, some don't cover suicide, etc etc. Suicide may be as simple as a drug OD while terminally ill.

Too may considerations to give cover all advise. Really depends on your financial and personal circumstances.

Mulga · 26-04-2016, 06:08 PM

The other thing you should check is the amount of your death and disability cover which is provided as part of your super. You have the option to increase this cover.

Stefan · 26-04-2016, 10:28 PM

Don't forget if you have family, i.e. kids, wife/partner, you really need three policies, (it gets expensive).

Life insurance (in case YOU die)- provides a lump Sum payout to your wife / partner and kids. Hopefully enough $$$ to pay off or buy house in a lump sum and provide some cash incase YOU die.

Income protection - provides income in case you are unable to work. Lots of different options.

Life insurance (incase your wife / partner dies) - this one 90% of people forget especially with school aged kids. you need the cash as you may choose to no longer work full time and take care of the kids.

My three policies cost over $500 / month, damn exxy but it's premium cover and each adult is insured for $1 Mil cash on either death plus my income insurance.

It is peace of mind knowing should the worst happen we are covered and able to take care of the kids without worry.

xisled · 26-04-2016, 11:09 PM

Also if you do get income insurance etc you may not be entitled to Centrelink if you get sick and are off work. It is important to think about this as the medications can be expensive if you have to pay full prices.

If you are off work sick and you are on Centrelink you may be entitle to a Heath care card which will give you massive discounts on medicines, so over all you may be better off on Centrelink.

End of the day you need to find out what your covered for bad what best suits your needs. It's the same with any insurance including car insurance, all policies are different and you need to read the PDS. If you have a question or don't understand something about a policy you need to ask.

OzriderXR8 · 27-04-2016, 09:19 AM

There are basically 3 types of insurance, Life cover, Total and Permanent disability and income protection.

Life - lump sum payout on death
TPD - Lump sum payout for defined disabilities, e.g. heart attack, cancer, amputation.
Income Protection - all different, check your policy, some only cover for 12 months, others offer more.

I'm covered under a company super / benefit for 4 times annual salary for all of the above, my Income Protection is 80% salary until age 65.