Saving Money on Life & Income Protection Insurance in OZ
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Saving Money on Life & Income Protection Insurance in OZ
The following is a summary of Insurance within Australia and how to save money on it.
To Assist you with this we have now introduced a new website to provide information and quotes:
LIFE INSURANCE EXPERTS
www.lifeinsuranceexperts.com.au
Savings
Savings can be had by picking the cheaper providers via the online quoting site above as well as qualifying for a 10% rebate on first year's premiums with any cover taken out through us.
Insurance in Australia
There are many types of insurance and providers of cover in Australia with many options for each type. Unlike in the UK and other countries, there is no requirement to have mandatory insurance when you take out a Mortgage!
Many Australians have some sort of group insurance cover in their industry super funds which is often cheap and provides only a minimum amount of money which is insufficient to pay out Mortgages or provide funds to meet lifestyle expenses.
Unfortunately, many Australians are either uninsured or have simply no Life cover in place or income replacement cover.
If they do have cover, it is often structured incorrectly or they are paying too much for their insurance.
Affordability
Many pay out of their own pocket or do not take cover out because they have no surplus money to pay for it not realising that they can pay via a super fund. Super allows you to hold and pay for cover which frees up money for other things such as paying off the house or travel etc.
TYPES OF INSURANCE – PERSONAL
Life Cover
Provides a lump sum benefit payable upon your death.
Total and Permanent Disability (TPD)
This form of insurance is normally available as an optional benefit on a Term Life or Trauma policy. The benefit is a lump sum paid if you become Totally and Permanently Disabled.
Trauma or Critical Illness Insurance
A trauma payment pays a lump sum to you and is likely to be paid should you suffer any of the covered conditions. This could include, but is not limited to: heart attack, stroke, cancer, paraplegia, multiple sclerosis, Parkinson’s disease, chronic liver, lung and kidney disease and many more.
Income Protection
It provides you with a monthly income should you not be able to work due to illness or disability whether the disability is permanent or not. Common events are long term minor illness, car accident, mental breakdown, or a more serious life event such as a heart attack.
Income Protection provides a payment of up to 75% of your wage on-going for the period of the coverage which can vary from a 2 year policy to an aged 65/70 year policy. However, it does not cover unemployment.
Income Protection is an important consideration, protecting one’s lifestyle especially if you have debts such as a mortgage.
Home Loan / Mortgage Protection
This is simply to ensure you have sufficient minimal levels of Life and/or Disability Insurance cover to pay out your Home Loan or Mortgage. Income Protection is also considered as essential in making repayments on your loan.
Temporary Residents
Many Temporary Residents are under the impression that they can not get cover at all. This is totally incorrect. There are a few who will and it is at the same rates as normal Permanent Residents.
Medical Issues
Nowadays, most insurers do not require Doctor Reports or Examinations. However if you have a pre existing medical condition the insurer may:
- Not provide insurance at all. Ie diagnosed with a serious ongoing medical condition.
- Provide cover but with an exclusion for that condition ie cancer. Ie: They will not pay out if you die from cancer but will if it was from a heart attack!
- Provide cover but at a higher cost.
- Or a combination of the above. An exclusion and a price increase.
So having a pre existing medical condition does not prevent you getting cover but it may affect what they provide you with. Every insurer is different.
Summary
Everyone should have some sort of cover and this will change in accordance with your life circumstances and age. Most people can save $$$ on their insurance by picking the right cover or reviewing it on a regular basis.
Temporary residents can get cover at normal prices and if affordability is an issue then you can hold and pay for cover within Super.
:-)
To Assist you with this we have now introduced a new website to provide information and quotes:
LIFE INSURANCE EXPERTS
www.lifeinsuranceexperts.com.au
Savings
Savings can be had by picking the cheaper providers via the online quoting site above as well as qualifying for a 10% rebate on first year's premiums with any cover taken out through us.
Insurance in Australia
There are many types of insurance and providers of cover in Australia with many options for each type. Unlike in the UK and other countries, there is no requirement to have mandatory insurance when you take out a Mortgage!
Many Australians have some sort of group insurance cover in their industry super funds which is often cheap and provides only a minimum amount of money which is insufficient to pay out Mortgages or provide funds to meet lifestyle expenses.
Unfortunately, many Australians are either uninsured or have simply no Life cover in place or income replacement cover.
If they do have cover, it is often structured incorrectly or they are paying too much for their insurance.
Affordability
Many pay out of their own pocket or do not take cover out because they have no surplus money to pay for it not realising that they can pay via a super fund. Super allows you to hold and pay for cover which frees up money for other things such as paying off the house or travel etc.
TYPES OF INSURANCE – PERSONAL
Life Cover
Provides a lump sum benefit payable upon your death.
Total and Permanent Disability (TPD)
This form of insurance is normally available as an optional benefit on a Term Life or Trauma policy. The benefit is a lump sum paid if you become Totally and Permanently Disabled.
Trauma or Critical Illness Insurance
A trauma payment pays a lump sum to you and is likely to be paid should you suffer any of the covered conditions. This could include, but is not limited to: heart attack, stroke, cancer, paraplegia, multiple sclerosis, Parkinson’s disease, chronic liver, lung and kidney disease and many more.
Income Protection
It provides you with a monthly income should you not be able to work due to illness or disability whether the disability is permanent or not. Common events are long term minor illness, car accident, mental breakdown, or a more serious life event such as a heart attack.
Income Protection provides a payment of up to 75% of your wage on-going for the period of the coverage which can vary from a 2 year policy to an aged 65/70 year policy. However, it does not cover unemployment.
Income Protection is an important consideration, protecting one’s lifestyle especially if you have debts such as a mortgage.
Home Loan / Mortgage Protection
This is simply to ensure you have sufficient minimal levels of Life and/or Disability Insurance cover to pay out your Home Loan or Mortgage. Income Protection is also considered as essential in making repayments on your loan.
Temporary Residents
Many Temporary Residents are under the impression that they can not get cover at all. This is totally incorrect. There are a few who will and it is at the same rates as normal Permanent Residents.
Medical Issues
Nowadays, most insurers do not require Doctor Reports or Examinations. However if you have a pre existing medical condition the insurer may:
- Not provide insurance at all. Ie diagnosed with a serious ongoing medical condition.
- Provide cover but with an exclusion for that condition ie cancer. Ie: They will not pay out if you die from cancer but will if it was from a heart attack!
- Provide cover but at a higher cost.
- Or a combination of the above. An exclusion and a price increase.
So having a pre existing medical condition does not prevent you getting cover but it may affect what they provide you with. Every insurer is different.
Summary
Everyone should have some sort of cover and this will change in accordance with your life circumstances and age. Most people can save $$$ on their insurance by picking the right cover or reviewing it on a regular basis.
Temporary residents can get cover at normal prices and if affordability is an issue then you can hold and pay for cover within Super.
:-)
Last edited by john in oz; Sep 25th 2015 at 4:08 am. Reason: typo