Can anyone recommend a good place to get income protection insurance?
I am aware it is possible to get cover via a Super Fund, but I'm wondering what else is out there.
I'm less concerned with the cost, more concerned with finding a company that will be easy/contactable to deal with should the need arise.
Any personal experiences?
inherentchoice beat me to it.
Can Some one enlighten me as to why it is good to have a life insurance and income protection insurance when do you have these covers from your Super? I used my Income protection insurance from Australian Super 2 years ago and it was very easy to claim.
Life cover inside super is generally fine. You're either dead or you're not, so it's hard for them to not pay a claim.
Income protection cover inside super is really variable. For example, some income protection inside super will only pay for 2 years, while other funds will pay until you are age 70.
The other thing to consider is the level of cover. The default level of cover for Life & TPD is normally $100-$300k. That won't go far if your family is trying to replace your income, or if you're permanently disabled and need constant support.
Still yet to check my super fund. I have 3 different ones (consolidate, I know….). But I was also wondering if I would be better off to get it from a separate company instead..
It's usually cheaper to go with your super fund. Tax wise it is better to go with super fund.
The provider of the income protection policy (outside of super) probably runs super funds as well.
Actually it is better tax wise to get it outside super. Can claim tax deduction that way…..cant inside super.
Yes, interesting as I was wondering if to opt out of the cover through super fund and go outside. Did some calculations and turns out (in my case, ie) that the tax deduction claim was offset by the much higher premium taking it from external company. The industry super fund through my employer takes out less premium and also pre tax income. What you pay to external company is post tax income.
It may be tricky to have Income Protection Insurance in super. Because you may not be able to access super benefits unless you meet one of the release clauses. So just because someone cant work doesn't mean they can access super benefits.
Also check what's the definition of cover.. is it "any occupation" or "your occupation"?
Consider going to a financial planner or insurance adviser. They can give you advice of the types of cover and all of the different options.
If you need to claim, they should also help you through the claims process. For good advisers, helping people claim is a big part of why they do the job. For bad advisers, helping people claim is great advertising as they'll normally be able to get a number of the claimant's family and friends to get insurance.
^^^ This ^^^
See an independent adviser - independent means they have more options
Don't go to one tied to say, your super or your bank
If they do their job they will shop around and recommend not only the cheapest but the better cover as well
This may often be within your super with top up outside
Cheers
Policy held outside of super you are the policy holder. Only have to meet the insurers conditions in order to receive money. Policy held in super, super trustee is the policy holder. You have to meet the insurers conditions plus your super funds conditions of release to get the money. Super funds conditions of release can be onerous.
Premiums on personally held policies are fully tax deductible. Premiums on fund held policies are paid from your super so nothing out of pocket but will reduce your fund balance which could be significant over the long period of time due to compounding.
In general super held policies not as comprehensive as personal policies but much cheaper. Usually called "income continuance" to distinguish from true "income protection" policies.
Have you checked if you already have it through you super fund? A lot of super funds automatically take premiums for this insurance and you have to opt out.