Contacted by Financial Solution Provider - Income Protection/Life Insurance Review

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  tomlikesbeetroot on 02/12/2020 - 16:13

  +3

  Definitely worth getting professional non-biased advice for things like insurance - at face value it doesn't sound like this company is totally non-biased they are likely to be earning their money from commissions if they are not charging you a fee.
  It can get complicated because some policies will become void if another company has paid already, so even if you take out a policy outside of super, there can be some situations where that would make your super policy void or vice versa.
  You can also increase the amount of cover on your super policy, so their comment about that not being enough to cover sounds like BS.

  • 

    ozwog05 on 02/12/2020 - 17:13

    Solid advice, cheers. I hadn't even considered the possibility of increasing the level of cover on my super policy.

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  tsunamisurfer on 02/12/2020 - 16:17

  +1

  It comes down to what you are comfortable with through your current policies.

  Ask yourself, do your IP and LI policies support you or your family adequately should the worst happen?

  If the answer is yes, ignore them.

  If you feel it needs a review then contact them.

  Please note the first free initial meeting with not have any tailored personal financial advice, they will provide general financial advice.

  Like you are getting on, you should review your super investments.

  The tailored advice they give you will be in a Statement of Advice which will cost hundreds to thousands of dollars depending on how comprehensively you want them to look into your wealth management..

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  Seraphin7 on 02/12/2020 - 16:34

  +2

  they replied that in some circumstances it may not be enough to cover, depending on the amount of liabilities on the table (eg. amount currently owing on home loan).

  That's true, stressing may in the above.

  already sounding a bit unethical

  'Ken oath it does.

  If they offer a no-obligation/fee assessment, should I take them up on it and see what they suggest?

  So long as you don't mind being hounded and needing to shut them down pending your own independent enquiries.

  or are they trying to milk me for additional protection I don't necessarily need?

  They probably won't be trying to sell you things you don't need (you only need insurance when something bad happens), but they're almost certainly going to want to sell you something.

  So my question, is there any merit to this?

  There might be, but I would look for my own referrals to assess my situation (if that's what you want to do), not what is effectively a cold call based on a questionably acquired phone list.

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  SlavOz on 02/12/2020 - 19:24

  +1

  There is definitely a benefit to getting direct life insurance as opposed to relying on the limited cover in your super, but it may or may not be right for you. Talk to a financial advisor.