Insurances

Discussion in 'Wealth Creation & Management' started by JulieW, Jan 26, 2016.

  1. SilverDJ

    SilverDJ Well-Known Member

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    Someone else handles the security, so don't have to specifically pay for it. No insurance as such, I trust their security.

    N/A at present, but you probably get "just in case". Idiots can (try) sue you if they trip in their own house they rent from you.

    I usually drop comprehensive once value gets low enough (say $5-10k)
    3rd party property in that case of course.

    Got it through my SMSF
    Worth it when you have kids, you know it can pay for their education etc, your partner won't struggle as much.

    Don't have it, but thinking about it, once again through the SMSF I consider almost free/play money at this point anyway.

    Not worth it. But I got it as part of my business insurance package anyway.

    I just have the minimum required to offset the extra tax.
    Can be important if panning kids.

    Health in particular I regard as a bit of a con.
    If you have the call an ambulance then you will get treated immediately regardless. Choosing your own doctor or hospital etc is bullshit if you just had a heart attack or something.
    Private plays a part after the fact if you have to stay in hospital. Basic hospital cover (required to avoid the extra tax) covers this anyway.
    Anything else unless you plan on having kids is a waste of money IMO.

    A con designed to pray on fears of the elderly.
    Maybe if your family is so poor they can't afford their next rent payment?

    Generally I'm a fan of saving the money and having it available for any issues that come up, rather than pay insurance for stuff.
    Important for SHTF stuff (death etc), but I don't see it as helpful in everyday life. e.g. private heath paying for your yoga classes etc.
     
  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Edited because I was a goober
     
  3. scrooged

    scrooged New Member

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  4. SilverDJ

    SilverDJ Well-Known Member

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    Oh, bugger, was about to check on that :(
     
  5. SilverDJ

    SilverDJ Well-Known Member

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    I checked and it seems you can:
    http://www.wealthsmart.com.au/superannuation/smsf-income/
    http://www.moneymanagement.com.au/n...rotection-cover-be-held-inside-superannuation
    http://www.insurancewatch.com.au/life-insurance-for-self-managed-super-funds-or-smsfs.html

    And yep, my life insurance SMSF provider offer it:
    http://www.agigroup.com.au/wholesale-rates-for-smsfs
     
  6. SilverDJ

    SilverDJ Well-Known Member

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    Actually, when the levy first started it was cheaper to get basic private hospital cover than the 1% extra levy you got charged.
    Not sure if that's the still the case, but I think it's close. So might as well get basic hospital cover.
     
  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    That's interesting, my broker said differently, or advised us that we pay it privately - it was one of those.

    Thanks.
     
  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    @SilverDJ, I've just done some reading and I think our adviser advised us to hold it outside of our SMSF because of the more favourable tax treatment, not because it was illegal. Inside your SMSF it only offsets up to 15% (the maximum tax rate SMSFs can pay), outside it offsets your marginal tax rate which can be as much as 45%.

    Thanks for correcting me. :)
     
  9. SilverDJ

    SilverDJ Well-Known Member

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    True. Although it sometimes pays to think about personal cash flow too. Whilst I can easily afford it personally, it feels nicer to use some of that useless SMSF money :D
    But interestingly I just got a dummy quote from my SMSF provider and it separated out the income protection part into a personal instead of SMSF. Strange.
    https://agismsf.com.au
    [​IMG]
     
  10. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    My Insurance protection is due in about October. My plan is to use my tax refund cheque, which should be higher than in previous years because of insurance protection to pay my annual premium in order to minimise any impact on my cash flow.
     

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