Life Insurance, are you fully covered?

November 17, 2014
Steve Sims

As credit advisors it’s also our role to check with our clients to make sure they have adequate cover for life’s unexpected events. Many of our clients don’t know what they have & 9 out of 10 say, “We’re ok, it’s in super.” But is this cover adequate for your needs? Have your circumstances changed? It could be possible to get cheaper cover outside of super, with more benefits.

Recently reported in The West Australian, results of a survey by Superannuation researcher Dexx&r, revealed that several years of significant hikes in group premiums means super based insurance is NOT necessarily the cheapest. Mark Kachlor, the principal of Dexx&r advised, ”It is no longer true for risk benefits offered by many of the larger industry funds, that long held belief that this cover will be more cost effective than holding comparable cover outside super”

Buying Life Insurance

For many this never quite makes it to the top of our priorities. Time poor, we’ll insure our cars & our homes, but what about the most valuable asset, our ability to earn an income. Now it’s never been easier.

What it covers

Life insurance covers a number of different types of products. It’s not just a lump sum paid in the event of death. Other cover includes total & permanent disablement, trauma, life cover & income protection.

Income protection is one of the most important personal insurances to have. An added bonus here is if you purchase outside of super, your premiums are a tax-deductible expense.

The three ways to buy life insurance

1. Direct from the insurer (online)

Buying direct is an option of DIYing your life insurance. It will be up to you to decide what type of policy you require, policy conditions & sum insured to suit your needs. The big disadvantage of DIY is that you’re not receiving professional advice & possibly not getting the type of cover best suited to your particular needs.

2. Through Super

Premiums are deducted from your super instead of coming out of your budget.  There are, however, some disadvantages of life insurance through super.  Policy conditions & product types can often be limited.  The payout of your super & associated life cover is at the discretion of the trustees of that super fund. Upon your death, funds may not end up being paid to your preferred beneficiary.

3. Advice from an adviser

Receiving professional advice avoids any misunderstandings & confusion as well as risk of underinsurance.  You’ll receive expert advice & insurance that best meets your needs & may work out to be more cost effective.

What would happen to you or your family if you suffered long term injury or illness? Who would pay for the mortgage & other household expenses? What if something happened to your spouse, would you be forced to give up your job to raise your family?

Speak to us today, on 6144 3230 about talking to one of our fully qualified financial advisors so that you can protect your quality of life. It can certainly ease any financial burden in the future.

Posted in: Financial planning

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