Income Protection Insurance Question

AMP's wealth arm was in heaps of trouble. They sold their business to I believe Resolution Life. They may tell their customers "nothing will change" but the reality is those products would be legacy products.
Having said that, changing insurance companies means that you may need to go through fresh underwriting. The new assessment will be based on your current situation which is most likely less favorable as you get older.
The larger players were TAL, AIA, MLC & Zurich. They had around 60% market share.
These four gobbled up the next four. TAL bought Suncorp. AIA bought comminsure. MLC joined with Nippon Life. Zurich bought Onepath. Now the top four has about 75% market share!
So if you are changing, I would stick with big four.
There are BT and Clearview in the mix as well.
If all Royal commission recommendations are implemented then I don't think anyone else will survive. As it is, everyone is bleeding.

 

There can be very sound financial reasons to NOT have income insurance inside super. However, it doesnt mean not to. Often a strategy that involves outside super AND inside super can be matched up so a effective coverage is in place. Cover in super can be very cheap but one of its greater weakness can be access a benefit if a condition of release is not met. Or restrictive terms on what is eligible.

Issues to consider could include debt, potential future inheritances, access to leave (ie 30 years service v's one) and many other financial matters.

I would seek financial advice rather than consult a general broker or any insurer directly. They may not consider all your financial issues which really may be important. After all their sole source of income is commission based fee income and over insurance may be an incentive. Insurers strangely have a duty to provide a PDS and not really consider all your needs. Thats a huge weakness. like allowing sick people to self medicate This conflicted interest issue was identified by the Royal Commission with the likes of product sellers (CBA) and the insurer itself (Commsec) as an example.

 

Thanks everyone for your valuable inputs.