Just looked into this myself earlier this week. I have life insurance with my super but it won't payout if the worst happened because I am a sahm.
My mum suggested I put said amount into a high interest bank account so if anything happened there would be some money to support ds. but if nothing did then it's just savings.
I'd would however talk to a few financial advisers and ask their opinions (preferably not someone who is selling you something)
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30-06-2012 23:00 #11
30-06-2012 23:06 #12
Yes. We wouldn't be without it ever!
I'm 23 my cover is $550,000 I pay $22 a month through MLC
My dh is 28 his cover is $1,050,000 and pays $77 a month and has had several miles removed plus anti depressants (reason he is more expensive)
Our mortgage/debt is under $200,000 so it's worked out that if dh dies I can pay debts out and live on $70,000 a year till the kids finish highschool (I would go back to work anyway after a while)
We also get money from super. Mine is $160,000 and dh's is $120,000.
If we both died we have it set up so the kids will own a house each (will be paid out and maintains, rates etc sorted) and school fees, living costs and uni sorted plus money left over for them later in life.
I honestly think its a huge investment needed when you have children.
30-06-2012 23:16 #13Senior Member
- Join Date
- Jun 2012
I'm a licensed financial adviser. I don't just provide insurance advice to clients.... I actually deeply believe in the importance of ensuring that you have adequate insurance based on your family needs and goals. I'm not a sales person. I couldn't sell fish and chips.
You insure your home, your contents and your car.... but more people don't even consider insuring their most important asset. Themselves. Where would your family be without you?
If you were to die, wouldn't you want to know that your children could continue to be afforded the life that you would want? Would you want your spouse to be forced to cease work to care for the kids and go on Centrelink benefits? I know what I'd prefer. I'd prefer to know that my DH could continue to work, pay for a nanny or day care and continue to provide for the family I had left behind.
I also believe in income protection - with a benefit period to age 65 if possible for the primary income earner... but that is a different issue!
Life insurance through superannuation is easy to organise. Most of you who have worked in the past and had super paid into an 'industry' fund probably already have cover. In certain funds the cover ceases after you don’t have contributions made into the fund. REST is a big one for this so watch that.
Insurance within super is affordable for almost everyone. Anyone who has money within a fund can organise an insurance cover where the premium is deducted from your superannuation savings. This means that you don't have to fund the cost of the cover from your cash flow.
You can generally hold Life, Total and Permanent Disability (TPD) and Salary Continuance (income protection) insurance within your superannuation.
If anyone has any specific funds or questions that they want help with, PM me. It will be my pleasure to answer your questions as I deal with this stuff every day!
30-06-2012 23:23 #14Senior Member
- Join Date
- Jun 2012
30-06-2012 23:24 #15
A better question is can you afford not to have it?
If the breadwinner could not work for a period of time, or worse, never work again, could you pay your bills? Pay your house off by selling other assets? Have someone like grandparents to look after your kids so you could work to support the family?
Not everyone needs it if they have other options ....like lots of money saved or assets like investment properties to sell....
Income protection is better because it covers heaps more scenarios. Life insurance usually only covers death and or TPD ( total permanant disability)
It's also HEAPS cheaper to buy it when you are young and healthy.
We have income protection and trauma insurance as DH is self employed and I'm a SAHM.
We couldn't afford it either but really needed to find room in the budget ( it was very difficult!) because we could not afford NOT to have it iykwim.
30-06-2012 23:38 #16
We just took out this insurance with the commonwealth bank http://www.commbank.com.au/personal/...e/default.aspx hubby has all 4, I have 3 (don't have income protection ). Costs us $280 a month for $500,000 each on life, trauma and tpd for both of us, and income covers 80% of hubbies income until he reaches 65 with a 30 day waiting period.
30-06-2012 23:38 #17-
- Join Date
- Nov 2008
We don't have it. We don't need it.
01-07-2012 00:01 #18
Yup we have it. My main beneficiary is my mother (she's 70). I want to make sure if god forbid i get killed in a car accident, there is money to make she she is well looked after her into her old age if she needs it. When we have kids, we'll increase it to go to them. I think if you buy it when you're young, it a bit cheaper. We have income protection, health insurance, etc. It does add up every month to a fair bit, but I don't think we can afford not to have it. You just never know.
01-07-2012 02:14 #19
I've got the lot.....life insurance, total & permanent disability, critical illness and income protection.
I've structured it so that life cover, total & permanent disability and two years of income protection are inside super. Outside super l pay for my critical illness and income protection with 2 years waiting period and benefit payable to age 65.
I feel as though l needed the lot as DP and l have a young family to care for and we have a mortgage with the bank.....l practice what l preach (l'm a financial adviser...but currently on maternity leave)
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01-07-2012 02:32 #20
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