All Topics / Help Needed! / LIFE INSURANCE AND INCOME PROTECTION !!

Viewing 20 posts - 1 through 20 (of 24 total)
  • Profile photo of Dolly101010Dolly101010
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    @dolly101010
    Join Date: 2012
    Post Count: 4

    What price do we all put on one self.      

    Profile photo of AilimeAilime
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    @ailime
    Join Date: 2008
    Post Count: 28

    I don't think there is a set amount as such.

    I believe it greatly depends on personal situation (having mortgage or not, dependents or not, etc) and how much the person taking the insurance is comfortable with.

    For a life insurance: one person may believe he/she needs only $ 500K, another person needs $1M coverage, another different person says $5M, while (I am taking a wild guess here :)) a billionaire may want $xxx billion or nothing all because he/she/the family have more than enough safety net.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I am worth $1.5mil…dead that is.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Tony FlemingTony Fleming
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    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    I've watched a lot or murder shows….watch out for Mrs W lol

    Tony Fleming | Triumphant Property Group
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    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of JpcashflowJpcashflow
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    @jpcashflow
    Join Date: 2007
    Post Count: 575

    I am the same as Terry, 1.5 Million…

    But getting the month if some thing happens from the life insurance companies is the challenging part.

    So many people dont even get paid out.

    Jpcashflow | JP Financial Group
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    Your first port of call in finance :)

    Profile photo of AilimeAilime
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    @ailime
    Join Date: 2008
    Post Count: 28

    I just thought of another factor… the affordability of premium amount.

    Johann, why don't some people get payout?

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    You need enough Death insurance to cover all your debts and some future costs such as private school education. 1.5 million is good I think the average is about $200,000 so there is a dramatic case of under insurance

    Nigel Kibel | Property Know How
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    Profile photo of jmsracheljmsrachel
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    @jmsrachel
    Join Date: 2012
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    I’m pretty sure some policies don’t cover suicide.

    Profile photo of JT7JT7
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    @jt7
    Join Date: 2010
    Post Count: 286
    Nigel Kibel wrote:
    You need enough Death insurance to cover all your debts and some future costs such as private school education. 1.5 million is good I think the average is about $200,000 so there is a dramatic case of under insurance

    Agree Nigel, $200,000 is grossly underinsured….!  

    Profile photo of JT7JT7
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    @jt7
    Join Date: 2010
    Post Count: 286

    Life insurance and disability plus trauma insurance is essential IMHO. 

    Our whole family including the children are insured.

    If something were to happen to me or my wife there would be sufficient funds to payout our entire portfolio.

    Gives me sleep at night comfort that if something did happen to me on or off the job my wife and children would never have to be concerned about money again. 

    Some of our insurance premiums are paid out through our smsf making less dent in our cashflow. 

    Jack 

    Profile photo of AilimeAilime
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    @ailime
    Join Date: 2008
    Post Count: 28

    I totally agree with the sleep at night comfort!

    BTW, What kind of insurance (apart from PHI) do children need?

    Profile photo of Dolly101010Dolly101010
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    @dolly101010
    Join Date: 2012
    Post Count: 4

    It's very interesting to read others comments. 

    My father has been on a disability pension since about 45 and is now sixty. 

    And although his cover has paid out his dept he explained that if he had of paid that little bit more he could of been very comfortable in life and wouldn't need to work a couple hours a week to pay for things he enjoys. 

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    The Dark Knight wrote:
    I've watched a lot or murder shows….watch out for Mrs W lol

    I’ve sacked my butler just in case.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Most policies JMS don't include suicide or faking your death by hiding in the attic.

    With many policies however your Financial Planner can dial back the premium for you by reducing his commission reflecting in a cheaper monthly premium without having to switch insurers.

    We now do this on every new policy we write for clients or any policy we take over where they have an existing policy in place.

    Many clients merely get us to manage the policy to reduce their monthly premium costs

    If we can help a client save a few dollars then all well and good.

    Realistically you wouldn't believe how many people are so under insured it is not funny.

    Every time you take out a new loan or have a change in family circumstances you should really review your policy cover.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    Profile photo of TheNewGuyTheNewGuy
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    @thenewguy
    Join Date: 2014
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    I just renewed all of my insurances. I have Income Protection for 3 months to death, at 80% of my salary. 3 months to 24 months is in my super, and 24 months+ is via Macquarie Insurance.

    For permanent injury / death, I have $750k lump sum, and a pension paid to my wife ~ $15k p.a + CPI for the rest of her life.

    I have ~ $800k in loans, including one IP and our PPOR. So this should leave her in a relatively 'ok' state, by providing  no mortgage and a yearly income (including rent) of about $35k. I don't want to be worth more dead than alive!

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    TheNewGuy wrote:
    I just renewed all of my insurances. I have Income Protection for 3 months to death, at 80% of my salary. 3 months to 24 months is in my super, and 24 months+ is via Macquarie Insurance.

    For permanent injury / death, I have $750k lump sum, and a pension paid to my wife ~ $15k p.a + CPI for the rest of her life.

    I have ~ $800k in loans, including one IP and our PPOR. So this should leave her in a relatively 'ok' state, by providing  no mortgage and a yearly income (including rent) of about $35k. I don't want to be worth more dead than alive!

    I am sure her new husband will appreciate this!

    Instead of paying your wife directly you could pay your estate and then divert it into a testamentary trust with certain controls to lessen the chance of any new spouse taking 'your' assets instead of them going to your children.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TheNewGuyTheNewGuy
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    @thenewguy
    Join Date: 2014
    Post Count: 151

    Hi TerryW,

    That's a good idea, we have child number 2 on the way and I haven't renewed my will since before child number 1 was born. At the moment everything goes to my wife, the whole I die, it goes it her, she remarries, then dies so it all goes to him does have me a bit worried about the future of my 2 children.

    Thanks for the heads up.

    PS. I'll check out all the links in your sig as well!

    Profile photo of FreckleFreckle
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    @freckle
    Join Date: 2012
    Post Count: 1,680

    Only bothered with life insurance for a critical but brief period when the kids where young. Figured I'd live forever… so far so good ;-)

    Near death experiences and hospitalisations;

    • mother was in a bad roll over when she was 7 months with me
    • hospitalised with colic at 10 mths
    • swallowed a threepence when I was 5, coughed it up just as i was going under
    • fell out the car when I was 7
    • wrote off a sports car in a 90mph prang when I was 14..walked away
    • hospital 1 week Leptospirosis mid 30's
    • meningitis RPA early 40's
    • Campylobacter food poisoning mid 40's
    • Campylobacter food poisoning again early 50's
    • heart attack early 50's

    insurance … who needs it..

    Profile photo of Reno101Reno101
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    @reno101
    Join Date: 2013
    Post Count: 26

    Freckle it must be in your DNA – good genes LOL 

    Profile photo of s0805s0805
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    @s0805
    Join Date: 2006
    Post Count: 85
    TheNewGuy wrote:
    I just renewed all of my insurances. I have Income Protection for 3 months to death, at 80% of my salary. 3 months to 24 months is in my super, and 24 months+ is via Macquarie Insurance.

    For permanent injury / death, I have $750k lump sum, and a pension paid to my wife ~ $15k p.a + CPI for the rest of her life.

    I have ~ $800k in loans, including one IP and our PPOR. So this should leave her in a relatively 'ok' state, by providing  no mortgage and a yearly income (including rent) of about $35k. I don't want to be worth more dead than alive!

    Just correct me if I am wrong here, having multiple income protection ( i.e. months to 24 months is in my super, and 24 months+ is via Macquarie Insurance)…isn't it duplicating the process,….i understand both gives protection for different timeframe…..but who would cover you for first 24 months just your super?

    Also, i guess you have ur injury insurance (TPD) outside of super….as in some super you'll still have to meet condition of release for this benefit to be paid out…..

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