Current Life Insurance - Dump It, or Keep Going?

uniqualz on 07/06/2017 - 13:48
Last edited 07/06/2017 - 13:49

Hi All,

My wife and I have been paying two life insurance policies for about 20 years, and just today I received our annual renewal that kicks in on 1st July, which got me wondering if we could do a lot better than this policy we got sold by a somewhat shady independent seller years ago. Just thought I'd check it out with you knowledgeable chaps.. ideas etc?

We started them both off about 20 years ago, when we were about 30yo and in great health (prior to 2 kids! Our health's still fine atm by the way). So we made fairly minimal monthly contributions of around $60/month for mine, and my wife's was about $28/month. That was for a $300k "life cover" policy for me, and a $145k "life cover and TPD" for my wife. The new figures stated on the renewal paperwork I got today have matured to;

Me: $358k life cover @$105/month
Wife: $180k life cover & TPD @$60/month - she also now has added Trauma cover since about 6 years ago of $29k @$15/month, so she totals $75/month

All up our combined monthly spend is $180/month for $570k cover.

This is all with NobleOak insurance.

Is life cover something that needs to be reviewed periodically, or can it even be moved to better offers from other companies like i.e. home loans can? If so, would we lose that long term benefit from being with NobleOak and moving away, starting with nothing at a new firm? Is this NobleOak one even competitive today?

Thanks V Much,
UniQualz

Health & Beauty

Comments

  • cho0kie on 07/06/2017 - 14:00
    +1

    Personally I would look into a new adviser for your insurance. Insurance varies on age, occupation and if the policy is on stepped or level benefits. Yes your current policies can be reviewed, However if you move to a new retail insurer you will need to go through underwriting again. Anything that you don't have to do upfront underwriting to is a joke because you are underwritten at time on claim which more often enough results in no payout. If you in Melbourne i can recommend my adviser, if you aren't just make sure its someone who is independent.

    • uniqualz on 08/06/2017 - 07:57

      Brilliant.. thanks v much Chook.

  • [Deactivated] on 07/06/2017 - 14:08
    +3

    cancel and increase ur superannuation funds life insurance if possible, it's cheaper.

    • Cyphar on 07/06/2017 - 15:29
      +1

      Not necessarily. Very few super funds have underwritten policies which means payouts can be lower or even non existent depending on the circumstances of your death and the quality of customer service they offer. So while you may think you are paying less for more, your family may go through hell to get it.

      • mick123 on 07/06/2017 - 16:16

        Is that true?
        I often thought that was a tactic used by life insurance brokers to convert you from life insurance in super to life insurance outside super.

        • Cyphar on 08/06/2017 - 09:33

          Definitely true. Super-paid life insurance has all kinds of clauses and conditions to limit payout. You should not rely solely on it. Like I said, it's not underwritten so that immediately limits payouts.

    • cho0kie on 08/06/2017 - 08:30

      in some circumstance yes inside super is cheaper however Income Protection in super is often only a 2 year benefit and the TPD definitions are terrible.

      • imahapyboy on 17/08/2017 - 11:10

        you must be a pro!! any insurance company you recommend?

  • Cyphar on 07/06/2017 - 15:27
    +1

    Yes, it's always wise to compare the market. My wife works in Life Insurance and makes it clear that unless it's an underwritten policy, it's not worth the paper it's written on. As Cho0kie points out though, this means that going from one policy to another means having to go through underwriting which entails all forms of testing. Don't leave your current policy until you have found another, however

  • sunnyc on 07/06/2017 - 19:10
    -2

    Not worth it. Life insurance brokers take 90% of the profits

    • poboy on 07/06/2017 - 22:24
      +1

      Sigh. Should I waste 10 mins explaining for 1 upvote? Nah.

  • imahapyboy on 17/08/2017 - 11:04

    yours must be in "step" payments right?

  • Donaldhump on 06/11/2017 - 07:10

    Are there any level premium insurers in Australia?

    • hhbb555 on 07/11/2017 - 19:56

      TAL insurance does offer level premium until the age of 65
      Coles insurance used to offer the same

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