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Life insurance


Faduv

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To all our fin gurus, what is the points one need to consider for life insurance in Aus. E.g. 40 year old male,wife and 2 kids

Now to sit back and wait for wisdom

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There isn't an age or stage of life really. You really need to ask yourself some of these questions...

What would happen if you weren't there or couldn't work? Do you have a bond or other loans to pay off? Could your family keep up their lifestyle if you weren't there?

Then ask yourself, how could $200 000 help that situation? If you passed away, your family may still have to move to a cheaper suburb as $200 000 would run out in a few years. But it does give them time to move...

Edited by monsta
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Main thing to think of is - if you died right now, how much would your family need to survive comfortably? They would at the very least need to pay off the house. It would be nice for you partner not to have to go back to work full tim to put food on the able and raise kids alone.

With that in mind - it's actually not that expensive to bump your life insurance cover through your Superanuation company up to half a million to a million dollars. And the premiums come out of you super so it doesn't seem as noticeable in your cashflow.

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I agree with Hansa, BUT, if you are smart then you personally pay into your super monthly, as well, to cover your life insurance payments. That way you are not fiddling with your super!

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Thanks much appreciated. At this stage we will head over without jobs so no luck to put through superannuation. Thus will need to pay outright. I noticed the insurance companies have 10, 20 and 100 year product offerings. For a start thinking of at least 10 years.

Edited by Faduv
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Thanks much appreciated. At this stage we will head over without jobs so no luck to put through superannuation. Thus will need to pay outright. I noticed the insurance companies have 10, 20 and 100 year product offerings. For a start thinking of at least 10 years.

Just to clarify, (unless I misunderstand you) you will start accruing Superannuation from your first pay cheque, your premiums for life insurance would come out of your Super payments which are paid for by your employer.

Unless you're looking for a stop gap until you're working?

I agree with Hansa, BUT, if you are smart then you personally pay into your super monthly, as well, to cover your life insurance payments. That way you are not fiddling with your super!

True, this will help. Although I don't trust Super as the only means of a retirement fund so personally I would rather invest that extra money elsewhere and treat Super as a bonus than pay more into Super right now.

All it takes is for one government to make some ridiculous ruling in 30 years time or some massive financial disaster and my Super is gone!

(As long as you do actually invest that money and not spend it on an Audi of course :) )

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Hi Hansa, my current situation in RSA is like the one described above. But once over I would need a stop gap just in case? E.g. something before I work

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