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Death and TPD through Super for unemployed

Discussion in 'Superannuation, SMSF & Personal Insurance' started by johnnyb, 15th Dec, 2008.

  1. johnnyb

    johnnyb Well-Known Member

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    Hobart
    Hi All,

    We're sorting out my wife's personal insurance but have run into a bit of a snag. We're trying to get Death and TPD through her super, but she is currently a house mum and her existing super (SunSuper) will only provide death insurance, not TPD, if you are unemployed.

    Does anyone know of a super fund that she could switch to, and that would provide death and TPD insurance to her while she is still unemployed? Her super balance is quite small (< $10,000), so I don't know if that limits our options.

    Our alternative is to simply do it outside super, but we would prefer not to as it is an extra drain on our cashflow which we could do without.

    Thanks.

    John.
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Johnny,

    ING have a homemaker Income Protection option which may be an alternative paying a monthly amount rather than a lump sum. Not sure about TPD though. Total and Permanent Disablement generally means your not going to go back to work. If your not working how can you go back to work?

    Cheers,

    Dan

    PS This is general information! Before making an insurance decision speak to your FPA registered Financial Planner to ensure that you receive tailored advice specific to your situation.
     
  3. johnnyb

    johnnyb Well-Known Member

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    Thanks Dan, I'll have a look at ING. To me it seems strange that they'd offer income protection for someone without an income, but not TPD. Essentially we're looking for cover in the event that my wife suffers a TPD injury and I'd have to leave work to look after her and the kids (or be able to pay a carer to do the same), so I suppose an ongoing income protection payment would achieve the same outcome.

    John.
     
  4. carlosreynolds

    carlosreynolds Active Member

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    Info on TPD via ING for home makers ...

    ING ups homemakers TPD limit

    ING’s product line-up now better reflects the importance of stay-at-home parents, with an increased maximum sum insured of $1.5 million for its total and permanent disability (TPD) cover now available to homemakers.

    Previously capped at $500,000, ING has boosted the total insured amount for non-working spouses because it believes such individuals’ contribution to the family generates the equivalent of a salary, and needs the same protection as that of income-generating spouses.​

    I know that MLC also offer a home maker definition for TPD, however not for IP. You should check all the major insurers though ie CommInsure, AXA, AMP ... It would only be a phone call and then checking how the definitions differ.
     
    Last edited by a moderator: 16th Dec, 2008
  5. johnnyb

    johnnyb Well-Known Member

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    Thanks for the link to ING. I'll check that out. But are all your suggestions for insurance outside super. I'd still don't know how to find a super fund through which we can take out this "homemaker" death and TPD insurance.

    John.
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Hi Johnny,

    This is where TPD in super when not working could be tricky and challenging. You can ring up any of the insurers and ask them whether they cover "homemakers" for Income Protection/Temporary Salary Continuance in their superannuation funds.

    Cheers,

    Dan
     
  7. _Sharon_

    _Sharon_ Active Member

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    I am a stay at home mum and have death and TPD insurance with my AMP super.

    HTH

    Sharon
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    Hi Sharon,

    Did you apply and go through a personal statement or was it through your employer's superannuation plan from when you worked?

    Cheers,

    Dan
     
  9. _Sharon_

    _Sharon_ Active Member

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    Hi Dan,

    I just applied myself. The super account was orginally set up by an employer years ago and had some death cover then but once I left employment it was invalid.


    Cheers
    Sharon
     
  10. pthm

    pthm Well-Known Member

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    Sorry, I cannot answer the question about a super fund that provides Life & TPD cover. Speaking from a slightly different angle, we have taken out Life and TPD insurance policies through our SMSF (tax deductible for SMSF) with CommInsure. Hubby's policy supplements that provided by his employer - so his TPD policy is specific to his profession. I am not working, so my TPD policy is "any profession". There is a difference between TPD cover for a particular profession and "any profession" - hubby did explain it to me, but I cannot remember it now.
     
  11. johnnyb

    johnnyb Well-Known Member

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    Sharon,

    That's a great help. Thanks.

    John.
     
  12. johnnyb

    johnnyb Well-Known Member

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    Yes, doing it via a SMSF would be a good way to do it, but our super balances are not high enough to justify setting up a SMSF.

    John.
     
  13. StevenLam

    StevenLam New Member

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    Location:
    Perth, WA
    working at Westpac, we have a Superannuation product " BT Super " that you should look into cos it has what you are after. Just to name a few excellent features

    - The ability to access your superannuation details anywhere and anytime as you have internet access. This is done through our Internet Banking. It will show up like an everyday account.

    - The ability to change the put your investment portfolio into different risk categories with a click of a button

    - The ability to roll your super that you have elsewhere into BT super, and this only takes 5 mintues with a few simple steps.

    - The ability to customise your insurance (death, TPD, income protection, etc)

    - fees are very low compare to the ones I came across

    If you would like additional information or want to read up about the product, please email me at stevenlam@westpac.com.au