Life Insurance

Hi Guys,

This question has been wondering in my mind for the past few days and i thought it best to get the expert opinion from my fellow members here.

Ever thought about Life Insurance? I currently have Death and TPD insurance from my Superannuation account and i was thinking of increasing my Insurance Cover (Just for Safety). As my current Death cover would entitle my family 200K, my mortgage is about 400K so i am thinking of increasing my insurance cover just for safety sake.

I am wondering, whether to increasy my cover from the Superannuation Insurance Cover or take a Life Insurance Policy from another Life Ins Company (Perhaps a Pvt firm or some other Insurance Company).

One benefit i see with taking out insurance from Super accounts is that you pay ur premiums before tax.

What are your thoughts?

One benefit i see with taking out insurance from Super accounts is that you pay ur premiums before tax.

This is a very big benefit being able to claim the premium as a Tax deduction.

Cheers

Yours in Finance
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
www.tayloredfinancialsolutions.com.au
richard@tayloredfinancialsolutions.com.au.
Lodoc loans from 7.14%

Hi,

It is great that you are even thinking about your insurance! So many people don't or they do when it is too late. I used to work at a bank and they do re-possess peoples' homes after a couple of months if there is little or no prospect of the mortgage repayments being met due to death, illness, injury, etc. There are probably other things you need to consider as well as your life that need covering, such as protecting your income for example, but insurance is a surprisingly complex area. 

I would recommend going to see a Financial Planner who specialises in 'Risk/Wealth Protection' (insurance). Make sure you find one who is not aligned to just one product provider and is prepared to look at your current policy in your super fund to tell you if it is any good. Tax deductions are appealing but there are other things to consider such as how any claim from a policy will be taxed when paid out (it can be different depending on who it is paid to, the purpose of the cover, whether in or outside super, etc) I am a Financial Planner who advises on a lot of insurance and it is a very personal thing. It really depends in the individuals needs. If possible get a recommendation from someone who's opinion you trust.