When was the last time you checked your policy? 

As the Financial Planner for PEB Property Group, Rebecca Howarth's priority is to ensure our clients personal life insurance premiums are cost effective and that their level of cover is appropriate for their individual needs. 

More often than not, Rebecca finds that most clients are insured through their industry super fund and frightfully nearly all are under insured and paying too much.

One such case was Annie. Annie had just bought an investment property and it was recommended that she ensure her debts were protected against death, disability, sickness and injury. Annie knew she had cover through her industry super fund but wasn’t sure how much or what she was paying for it.

After a thorough assessment of Annie's commitments, it was made clear just how under insured Annie really was...

Original Cover $500,000 Death and TPD - Total and Permanent Disability
$4,200 per month Income Protection  (90 day wait 2 year benefit)
Ideal Cover $1,125,000 Death and TPD - Total and Permanent Disability
$5,250 per month Income Protection (90 day wait)

 ...and how by changing providers, she could get better cover for a lower premium.

Industry fund premium for ideal cover $2,422 per annum (Income Protection with 2 year benefit)
New recommended premium for ideal cover $1,793 per annum (Income Protection with 2 year benefit)
$2,380 per annum (Income Protection to age 65, a benefit not available through her current provider)

Other things Annie learnt about her current cover:

Annie didn’t know that her industry super fund life insurance cover began to decrease from age 46 as it wasn’t fixed cover. Although she had default income protection insurance it would only cover her for 2 years and she wanted a benefit period to age 65.

By obtaining advice Annie was able to:

  1. Get qualified life insurance advice from a Certified Financial Planner
  2. Put in place the right level of cover for her family
  3. Obtain a better life insurance policy for less $$ than offered through her super fund
  4. Get help and guidance to put everything in place
  5. Have no out of pocket cost for advice or the insurance premium (insurance premium paid through super)
  6. Stay with her current superannuation fund
  7. Get an upfront 15% tax rebate on premiums paid from a superannuation rollover payment 

PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development. PEB Finance is a trading name of PEB Brokers Pty Ltd ACN 604 784 401 | Australian Credit Licence 389510 | Credit Representative Number 476313. PEB Real Estate is a trading name of PEB Real Estate Pty Ltd (Licensee) ABN 33 604 199 617 | Triennial Number RA70508. PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098.

Disclaimer: Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this edition is correct as of the date of publication and is subject to change. Names used in this article have been changed for privacy.