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:
- Get qualified life insurance advice from a Certified Financial Planner
- Put in place the right level of cover for his family
- Gain peace of mind that he was getting the best premium for his situation
- Get help and guidance to put everything in place
- Have no out of pocket cost for advice or the life insurance premium (insurance premium paid through super)
- Stay with his current superannuation fund
- Get an upfront, 15% tax rebate on premiums paid from his superannuation rollover payment
Rebecca Howarth from PEB Financial Planning can help you design an insurance package that suits your situation.