Life insurance

**AliBaby** · August 27th, 2013, 03:14 PM

Wondering if anyone has it? When you decided to get it? Can you recommend a fund?

I have been considering get it. Not because I think my life is going to end, more for the security of my family. We don't have a house for my kids to inherit and I don't want them to inherit bills or debts, so I am wondering if it is a sensible thing to do or a bit of a con.

Any experiences welcome.

**little_O** · August 27th, 2013, 03:25 PM

Cant speak from experience of actually using it

BUT we both have it. I mainly chose to get it because of my business situation, i am not covered by work cover, whilst not owning my own business. I needed to have disability, trauma etc. Life was included in my policy.

DH and i both have it so that if either of us die, the mortgage is paid out and the other party has no stress on trying to cover it whilst grieving etc. It also means that if i were to die (or visa versa) the surviving party can afford to have time off with the kids, get their lives back on track etc. without stressing about having a 9-5 to get by.

**Jaycee** · August 27th, 2013, 04:24 PM

I have a small amount built in to my super, DH has a larger amount also built in to his super.

We decided to do it this way because then the money isn't coming straight out of our pocket. It does cost a bit through super, but I imagine it would be a similar cost if it was through an insurance company.

Perhaps you could look into doing it this way?

**Lenny** · August 27th, 2013, 04:42 PM

No, it's not a con. It's insurance, just like house and car and contents etc. you may never need it, and then that's awesome. If you do, then yay for having it.

It can be very very cheap really. I pay (seriously, its cheap ) $3.30 per fortnight through a super fund. It's about 200k of cover (it goes up with inflation, hence I'm not 100% sure).

DH would hire a nanny, or move overseas to live near family or whatever if I died. He'd be able to spend a few years grieving his lovely wife without stressing over bills.

ETA I got it when we first bought a house. The mortgage was big and it only seemed fair to have insurance to cover it if one of us died. We had kids after the house purchase, but I'm sure having kids would have been the next trigger to getting life insurance.

**MummyNaomi** · August 27th, 2013, 06:01 PM

We have a small amount included in our super however we also have life insurance for us both. We are each covered for $500k - enough to pay off the mortgage completely and cover a few years of wages / increased childcare etc too. We pay about $200 a month. Although its expensive I don't mind paying it. I want my family protected should the worse happen

The cost really depends on the level of cover u want. Also shop around as costs vary quite a bit

**Amity** · August 27th, 2013, 06:06 PM

I have a very large amount. I'm worth more dead than alive

Seriously? Enough to pay out two (large) mortgages, plus private school fees for secondary school for two kids, ($30K each per year, six years) plus a bit more.

I pay over $2k a month in insurances (life, TPi, income protection, car, house/building x 3, professional indemnity, and a few more)

Worth every cent.

**Lenny** · August 28th, 2013, 07:42 AM

I used to have a policy with RealInsurance. It wasn't too much paperwork, pretty easy actually. Then we changed to the one through my DHs super fund because it was super cheap, but the amount of paper work was absurd. No medical tests or anything, just loads and loads of questions.

**misty** · August 27th, 2013, 06:51 PM

I used to have it, but 12 months without work related super contributions makes me inelligible for it through my super anymore. I should at least look into funeral insurance, if not life insurance, but we have been so financially tight up until now that it hasnt been a priority.
((it's not ideal, but I do know my parents would help DH out financially if I passed away and he needed help with funeral costs and such - so it didn't make the 'priority' list))

My hubby has significant life insurance through his super fund to cover me and the kids and all our debts if something were to happen to him.

**nickle730** · August 27th, 2013, 06:56 PM

Yup, DH and I are covered privately for $1M each and also have a further $500K through super. It's not cheap, but if one of us were to die, we would want the other to focus on our grieving children than to worry about finances. Make sure you check the policy fine print as the terms and conditions do vary.

**Astrid** · August 27th, 2013, 07:01 PM

DH has his through his super, mine is seperate as we organised it when I was not working. I also have TPD and accident coverage. Ours will pay out the mortgage and leave some left over. Not enough to live the high life, but enough to take away some of the stress.

One of those things, the sooner you get it the better. If I got mine only 5 years earlier I would have been covered for breast cancer, plus I weighed less. My weight, even though not massive, bumps up the premium.

**Beatrix** · August 27th, 2013, 07:15 PM

yes we have it, I got my policy in 2006 when i was only 22 after i had my 1st daughter. Policy would cover purchase of a modest house (no mortgage yet). Took out a policy for DH when he moved in and became our sole provider. Once we buy a house will up the policy to cover mortgage.

We pay $18 a month for $260k non smoker, healthy male through Zurich.

Im the kinda person who does not go without any type of insurance full comp both cars, contents etc (only thing can not afford atm is hospital cover but we do have general health extras)

**AliBaby** · August 27th, 2013, 07:11 PM

Thanks for your responses girl.

I am definitely going to look into getting it. No one really talks about it so its nice to hear that young people are getting it as well.

**Lenny** · August 27th, 2013, 09:17 PM

No one really talks about it so its nice to hear that young people are getting it as well.

I'll take that as a compliment.

It should really be a young persons insurance. People with financial obligations. Because once you get older you require that money a lot less and premiums go up astronomically too. Not too many elderly people would have hefty life insurance policies.

**AliBaby** · August 27th, 2013, 10:15 PM

oops double post

**AliBaby** · August 27th, 2013, 10:16 PM

I am being serious though. I consider us all quite young when you consider life expectancy and I guess in my eyes (up until recently), I have thought that I wouldn't need to worry about those things until I am old, but you are spot on Lenny. It should be a young persons insurance for the very reasons you stated.

I am glad I started this thread. It has been great insight.

I am currently paying $30 a month for loan protection on a personal loan so why aren't I paying for protection on my life when it would probably cost the same if not less than my loan protection.

Going to get onto it this week.

**Jennifer13** · August 27th, 2013, 07:20 PM

We both have life insurance.

If you're self-employed you can take out a policy known as life insurance as super. Slightly different in that it's a tax write off, if I remember correctly. We are with One Path. That's not to be confused with the life ins you can get through your employer-contributed super fund, it's completely different. Actually, if you compare costs, the normal super funds' life ins are way more expensive than organising something separately for the amount covered. We got enough life ins to cover the surviving spouse comfortably until all children are adults (or if we were both to die, for those raising our children to do so very comfortably).

I did have some hassle getting mine as I'd lost more than 5kg in a year, thanks to giving birth, so needed a medical through one company. Bloods were also irregular after having DD1, something pg/birth related although can't quite remember what (this was 7 yrs ago). We went with a different company in the end that basically didn't require any rigmarole for a perfectly healthy and reasonable life experience for a 29 year old.

**~Phoenix~** · August 27th, 2013, 07:23 PM

We only recently topped up our life insurance through super - that way fees are taken out of contributions & not directly out of our own pocket. Life insurance is also tax deductible.

We have enough to pay out mortgages and get kids through school with me not having to work for a few years if something happened to DH and for him to be able to stop work for a while and/or employ help if anything happened to me.

It's one of those things you hope you don't need to use for a very very very long time if ever. My parents have had it for years & when dad passed for mum knowing she was financially stable & had money to pay for funeral, bills, pay off mortgage etc was one less thing she had to worry about at such a stressful time in her life.