Life, TPD and Trauma insurance providers recommendations

Appreciate your thoughts on Life, TPD and Trauma insurance providers. Any recommendation on who is best in the market, Onepath, MLC, TAL, ClearView etc..?

I am looking to buy these policies outside super. Do you think it's a good idea to buy Income Protection and all above policies from a different providers so that if one rejects TPD, there is a possibility of other provider accepting IP claim. Each company might have a minor differences in PDS which might favour me during claims?

And also what are your views on OnePath for Life, TPD and Trauma and how does it compare with MLC and ClearView. I have checked MoneySmart website and OnePath claim acceptance is 15% less than the industry average. thoughts?

I am speaking with Advisor and he is strongly advising to go with OnePath and sometimes it's hard to to follow advisors advise for obvious reasons

 

You would need a financial services licence to reply to this. Best to seek financial advice.

 

Thanks Terry for reply but I am seeking general view, forum members experiences, nothing specific to my circumstances.

 

These insurance products that you've listed change all the time and there are so many nuances you need to understand in each policy before making a decision.

I get that you want a second opinion, however there is a risk that a general view will be totally irrelevant to your circumstances. In this instance, I really can't see how an opinion on this forum is going to be more helpful than your advisers recommendation.

Especially after he's already done a detailed fact find...

 

I'll just tell you my experience, obviously may not apply to your circumstances.

Insurance is hard to get right, period.

I think OnePath is now owned by Zurich. The general wisdom is that any of the big insurers will a fully underwritten policy is OK as long as it meets your needs.

Unless you have very good reasons, it is best to stick to one insurer for inter-linked policies. Most insurers will have a master limit say a million for life but if they pay out a TPD claim then your linked-limit will be reduced by whatever the payout is.

Many insurers also do multi-policy discounts. Instead of focusing on the insurer, I would focus on the policy, what it covers, what it doesn't. exclusions, waiting periods, step vs level premiums, inside-super vs outside-super vs hybrid, policy definitions etc.

PS: I ended up with Zurich in the end as it fits my needs.

 

Just wanna confirm:-

All Financial Advisors gets kick backs from from insurance providers?

Me and my wife akso considering outside super with superlink whete we had to pay coupke if hunfered every month from pocket and rest ve from super.

 

A financial advisor can either take a commission or fee for service. Generally fee for service is cheaper for the customer and you should ask for this quote if not provided. The advisor will be providing a statement of advice to you detailing their advice and their commission will be disclosed both year one and ongoing. When completing the quote be sure to pay careful attention to the questionnaire and now this includes covid 19.

Be sure to consider level v stepped premiums, personally I am a fan on level premiums and the quote will show a break even point for the cost of the periods v your age. Your advisor will provide a comparison of insurers for your needs.

Cheers Ivan

 

Thank you so much for highlighting important information, much appreciated!

 

I would have doubts an adviser takes a fee and comms on the insurance. Usually.one or the other. A comm from the insurer usually doesn't change the premium so it's akin to free advice. Old school advisers who took trail are probably on the decline...eg amp

 

Anyone had good/bad experience with Neos (funded by Noblepark).

I also used the Momeysmart link to explore more about claim % etc.

Yes, in SOA initial commission and ongoing is mentioned. There is a superlink with salary sacrifuce component.

I am doing alot of reading to find out more and ask questions.

@Redwood - Re level v stepped premiums: would you be abke to throw some light on this? I will check pds for covid19.

 

All financial advice. Nobody can answer this

 

Do FA charge for this or due to commission componemt they just suggest products to campare?

 

depends on the FA.

 

Financial advisors will either charge a fee for service or obtain a commission. This will all be disclosed in the SOA and FSG of the advisor. You will find more and more advisors are moving to fee for service model. Generally an advisor will have 3 quotes they present to the client and maintain these on file for audit purposes. There will also be a needs analysis which covers expected insurance. I'd hope the process is more transparent than what it used to be

Cheers Ivan