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Seen financial advisor - more confused then ever!!!

Discussion in 'General Investing Discussion' started by LRL82, 16th Mar, 2011.

  1. LRL82

    LRL82 New Member

    Joined:
    13th Jan, 2011
    Posts:
    3
    Location:
    Townsville, Qld
    Ok went to see a f/a about getting income protection etc. Came out with my head spinning, he has suggested getting some package that gives me income, life, tpd that comes out of my super but cost something like 3k a year & then get critical illness cover which I pay $100 a month for.
    I was looking for just basic income protection & I earn an ok wage & it's a tax deduction.

    I dont know if i'm being taken for a ride or not & what's the go with the cover coming out of my super? Is that a good idea or not?

    Any advice would be really appreciated.
     
  2. builder2818

    builder2818 Well-Known Member

    Joined:
    31st Dec, 2008
    Posts:
    89
    Location:
    Sydney
    He's trying to get you to sign up for more types of insurance as well as the income protection you were requesting. You can pay for these other types of insurance through your super. If the insurance he is trying to recommend you for pays a lump sum amount due to an onset of a specific claim for that type of insurance, then the premium you pay is not tax deductible. Only income protection insurance can be claimed as a tax deduction because it pays an income if you claim.

    If you sign up for all these insurances, the adviser will get a bigger whack of commissions in his pocket - you may even be required to switch super funds just so he would be eligible to receive them too if you are currently in an industry fund.