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Info on Insurance

Discussion in 'Investor Resources & Tools' started by APerry, 20th Apr, 2009.

  1. APerry

    APerry Active Member

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    Melbourne
    The attached pdf contains some interesting info on insurance.
     

    Attached Files:

  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi APerry,

    Nothing too amazing there.
    What is more interesting is level premiums!
    Rather than your premium increasing each year, the premium is the same year to year!

    Cheers,

    Dan

    PS Before making an insurance decision speak to your FPA registered Financial Planner or insurance specialist.
     
  3. APerry

    APerry Active Member

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    I was a bit shocked at how few people have Life cover
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Actually you will find that most salaried workers will have some form of life cover via their superannuation fund.

    That being said, it typically isn't a significant amount (depends on super balance usually), and many people don't have much in the way of super at all.
     
  5. AsxBroker

    AsxBroker Well-Known Member

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    Hi APerry,

    As Sim said, an employer has to offer a superannuation which has a statuted minimum level of cover. Unfortunately the statuted minimum is approx $75,000 or so for an under 30 year old and reduces as the member gets older (It's linked to however much can be purchased for $1.50 per week from memory).

    An employer is supposed to offer "Choice of Superannuation" to an employee within 28 days of starting a new job unless mandated in the Award. The fund offered is supposed to have the minimum statutory amounts of insurance, if an employer's default superannuation does not offer the minimum insurance by default they are breaking federal laws and could be in strife if something happened to an employee (potentially end up in court being sued).

    The statutory minimum amount of cover maybe be suitable for someone who has no children, no mortgage and no other commitments. Once someone has commitments, the minimum level of cover will probably be less than suitable and the members insurance levels should be reviewed to ensure it meets the members needs.

    If a member chooses to exercise "Choise of superannuation" then they have made a concious decision having that super fund and the level of insurance cover is suitable to their needs

    Cheers,

    Dan

    PS Before making an insurance decision speak to your FPA registered Financial Planner or insurance specialist.
     
  6. APerry

    APerry Active Member

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    Obviously more people should be exercising their ability to choose
     
  7. AsxBroker

    AsxBroker Well-Known Member

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    Hi APerry,

    More people should certainly be more aware of their superannuation fund and the benefits associated with it and if it matches their individual needs. Around 84% of funds invested in superannuation are invested in the "default" fund which shows us that a substantial number of superannuants do not bother making an active choice.

    Cheers,

    Dan