Originally Posted by
DirectAnywhere
Mid 40s, no health issues, 8 k per month to age 60 with AIA, $9k per annum. 😬
Tax deductible. Thats with a two year waiting period as that two years is covered by the super fund.
That should be a warning to anyone considering getting into this industry, as it’s representative of the level of risk to your future earning capacity in the event of a medical issue. Much more expensive to insure than other industries.
Also, paying an additional 7k p/a in insurance premiums through the super fund though!! (Not directly tax deductible, the fund claims a tax deduction but you don’t get it directly).
At some stage I’ll probably have to drop that insurance through the super fund entirely (can’t reduce the cover, only drop it) as the way premiums are tracking in a few years they will exceed the concessional contributions limit ie. I’ll be effectively putting in $0 in contributions.
By that stage, I’ll probably be at about 50k p/a in premiums, projecting ahead.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it (like I will probably have to).
All up, it’s close to 16k p/a in death, tpd and LOI insurance for me this year. It’s a problem.
That makes it pretty unsustainable in the long run