Financial planner for restructuring personal insurance

I have recently reviewed my income protection insurance and reached a conclusion that I should be paying majority of the premium out of my super and a small percentage from after tax income. The reason for this is because I max out my concessional super contributions and want to use the after tax to pay off debt. I will not be able to access super for another 20 years.

Now my insurer Zurich would only make the changes if instructed by a financial adviser. I have never used the services of an independent financial adviser. The comparison company that originally helped me to organise this insurance 6 years ago thinks this is an opportunity for them to sign me up for another product.

So what should I do in this situation?

 

If it was me, I would tell them I'm advising myself and if they don't like that go somewhere else.

 

You seem to be on the right track with your conclusion, however I think it would be good for you to get a second opinion from a financial adviser.

This can be a complex area and you're probably dealing with large amounts of money..

 

Purpose is to cover me if I become ill or disabled and unable to work in my current profession. I did read the PDS but cannot say I understand 100% what is covered. The insurance will cover me until the age of 65, there is a 3 months waiting period and the payout would be based on 75% of average monthly income during the last 12 months.

 

I guess there is no incentive for an independent FP in restructuring the insurance?

If I take out a new policy with the help from an independent FP, do they receive trailing commissions? Or do FPs offer a fee for insurance advice option?

 

They would probably receive an upfront fee and a trail. If you stay with the same insurer they might only receive a trail though.

 

Have you spoken to someone from your Super Fund, or is it self-funded?

 

Comparison sites work on commission from their recommendations, so they are NOT independent. Take their advice with caution. They will only recommend from the companies prepared to pay their hefty commissions.

We got caught with iSelect. They recommended the “most suitable” cover for us, and yes, it was considerably cheaper. We only found out years later, when hubby was considering surgery, that the policy they had recommended was a limited cover, not the top level we had previously (and which we asked for comparable). It was galling to know they had been paid commission the whole time we had an inadequate cover.
Marg

 

I am with AustralianSuper. As far as I am aware, they would not take on the policy without involving a financial planner.

 

I'm pretty up to speed with insurance within Super post Royal Commission. So to clarify, do you want to get insurance as part of your Super or totally independent of your Super? With a different company?

Do you want to move away from Zurich or go to Zurich?

I didnt find the exact details about a Financial Planner easily on AS's website just then. If you direct us to the exact part I can read it for you again, later today. When I changed my IP insurance last week at QSuper, it suggested I talk to a FP. I had to tick a box saying I do not require one atm. If you want to talk to a FP within your super fund, they can give a short consultation on the phone so you can check a few things, for no cost . Last I knew it was about 30-40 minutes.

I remember last year in the midst of the RC, QSuper wanted me to make an appointment for a full financial overhaul with 30 pages of personal forms to fill out, at a cost of about $500 when all I wanted to do was ask a couple of what I thought were simple questions. Policy - I think the call centre staff were instructed to go overkill.

However it is sensible for you to see a FP if that is what you WANT to do for your own reasons. It is always better to be safe than sorry.

I'll be back in a few hours.

 

Ok. I think it's time to speak to a financial adviser. I have no problem going through answering all financial questions / fact sheets. Are there any independent FPs on this forum who have been tried and tested and able to assist with personal insurance?

 

Just to clarify, if a financial adviser has advertised themselves as 'independent' and receives a trail commission they have broken the law.

 

Hi mpty,

We have had a really good experience working with@Alex Straker who operates HTRE and posts here quite often. Restructuring personal insurance is just one of the things he covered. Super smart and honest guy.

Cheers
Matt.

 

Thanks. I will consider him.

 

Thanks. I will look him up.

 

Is Jason independent advisor?