Life Insurance Case Study - Peter

Recently Peter refinanced his home loan with PEB Finance and was advised to review his Life and Income Protection insurance policy with Rebecca from PEB Financial Planning.

Peter knew he had personal insurance cover through his industry super fund but wasn’t sure how much or what the premium was.

After a short consultation with Rebecca, it was established that yes, Peter was covered but not nearly well enough!

Peter's current policy through his Industry super fund covered him for:

  • $260,000 Death
  • $130,000 TPD - Total and Permanent Disability
  • NO INCOME PROTECTION INSURANCE

Peter’s wife didn’t work and if something happened to Peter the level of Death or Total and Permanent Disability cover wouldn’t be able to maintain anything close to their current lifestyle. 

An even worse discovery was that Peter thought he had at least default Income Protection Insurance but in fact, his industry super fund did not even cover manual workers.

So with a little work, Peter's new insurance policy now looks like this:

  • $776,000 Death and TPD - Total and Permanent Disability
  • $4,500 per month Income Protection insurance (90 day wait and 5 year benefit)

Peter and his wife can now rest at ease knowing that they have the right cover in place and, since the premium is paid with Peter's superannuation monies, his actual cash flow hasn't been affected by the increase in his premium.

In summary, by obtaining advice Peter was able to:

  1.      Get qualified life insurance advice from a Certified Financial Planner
  2.      Put in place the right level of cover for his family
  3.      Gain peace of mind that he was getting the best premium for his situation
  4.      Get help and guidance to put everything in place
  5.      Have no out of pocket cost for advice or the life insurance premium (insurance premium paid through super)
  6.      Stay with his current superannuation fund
  7.      Get an upfront, 15% tax rebate on premiums paid from his 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.