Personal insurance · Brisbane
Life insurance and income protection advice in Brisbane
Personal insurance is there to pay the bills if you die, become disabled, get seriously ill or can’t work. FinForce helps people in Brisbane and across Australia work out what cover they actually need, where it should sit (inside or outside super) and what it will cost, from our office at Level 7, 190 Edward Street. FinForce advisers are authorised representatives of Financial Force Pty Ltd, AFSL 238337 (FinForce is Corporate Authorised Representative 001241242).
The four main covers
What each type of cover does.
- Life cover pays a lump sum if you die or are diagnosed with a terminal illness.
- Total and permanent disability (TPD) pays a lump sum if illness or injury means you are unlikely to work again. Definitions differ (own occupation or any occupation), and that wording matters at claim time.
- Trauma (critical illness) pays a lump sum on diagnosis of a listed condition, such as some cancers, heart attack or stroke. New trauma cover can’t be held inside super.
- Income protection pays a monthly benefit (a share of your income, not all of it) if you can’t work because of illness or injury, after a waiting period and for a set benefit period.
Moneysmart has a plain guide to the types of life insurance.
How much cover
Sized to what depends on you.
We start from your real obligations rather than a rule of thumb: the mortgage and other debts, what your family would need to live on and for how long, children’s education, business loans or guarantees, and the money you already have (super balances, existing cover through super, savings and assets).
Then we test the trade-off: more cover costs more each year, and premiums usually rise with age. The aim is cover you can keep paying for, not the biggest number on a quote.
Inside or outside super
Where the policy sits changes the cost and the claim.
- Inside super: premiums come out of your super balance, which can help cash flow but reduces your retirement savings. Cover can switch off if your account is inactive for 16 months, and some under-25s and low balances have cover only if they opt in.
- Outside super: you pay premiums from your own money. Definitions can be broader (for example own-occupation TPD), and some income protection premiums held personally may be tax deductible.
- Split or linked policies combine the two. Tax on a claim paid from super can differ from a claim paid to you directly.
More detail: insurance inside super.
Before you switch
Don’t cancel cover until new cover is in place.
Replacing a policy can mean new health questions, new waiting periods and exclusions for conditions you already have. A good recommendation compares what you have now with what is proposed, including what you would lose, and explains it in your Statement of Advice. Every fee is set out in writing before you commit. See how our fees work.
General information only. It does not take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement and our Financial Services Guide, and get personal advice before acting.
Common questions
Do I need life insurance if I have cover in my super?
Possibly not, but check the amount and terms. Default cover in super is often a set formula that may not match your debts and family needs, and it can switch off if the account is inactive. We compare what you have with what you need.
Is income protection tax deductible?
Premiums for income protection you hold personally are generally tax deductible, and benefits are generally taxed as income. Premiums paid inside super are not claimed on your personal return. See the ATO for current rules.
Can I hold trauma cover in super?
No new trauma (critical illness) cover can be held inside super. It is held personally, sometimes linked to a policy in super.
Do you charge a fee or receive commission for insurance advice?
How we are paid for insurance advice, including any commission from the insurer, is set out in writing in your Statement of Advice before you decide, and in our Financial Services Guide.
Next step
Talk to our team on Edward Street.
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