Life insurance vs superannuation?

Personally, at this stage I would be more inclined to get the life insurance now as you never know what could happen but you do know when you want to retire. Just my opinion. Hope that you guys sort it out.

We are lucky as DH's super is his life insurance too (army) - he's too high risk to get life insurance anywhere else. Personally, I would go for the life insurance as you never know what could happen (god forbid), and when your children are older you usually have more money to save etc. That's the way my parents did it and I'm the same - I don't work (student) but I still have enough life insurance to cover my funeral, debts etc.

I'm a bad, bad person I do neither, as we have a fairly substantial family trust that would look after my kids if anything happened to me, and as I earn more than Willie I'd cope if we suddenly lost his income (altho it would mean me working full time again). I know I have a rather unhealthy attitude to money , it drives Willie nuts.

we have a mortgage and dont have insurance...it is only a requirement if you have little or no equity!

I would say unless his job matches his superanuation dollars in (eg police, fire, BHP etc) then go the life insurance route but one with a cash out...talk to the likes of sovereign etc and see what they offer.

I cant get life insurance on DH - bugger!!!! and dont think i havent tried!!! LMAO!!!

DH has life insurance. They won't cover me (bastards!). So I'd go with life insurance and then worry about retirement stuff when the kids are a little bit older and you can afford both

Yup, I'm with them - definitely life insurance. That whole "we're not going to die" attitude of your hubby is a bit naive.... No-one PLANS to die in an accident. Make sure your kids are taken care of first and foremost I reckon. And sorry if that sounded a bit harsh. It's the voice of experience - my dad was killed in an accident when I was a child and had forgotten to sign his life insurance docs, so my mum was left penniless and with 2 kids.

I agree with what someone said about having to look after the other partner - some life insurance policies have a life and permanent disablement plan, where you can get paid out if you live, but can no longer work. This means that your family doesn't have to suffer when they're also trying to look after you. I guess you could start off small so that all your debts are covered at least, and then when you have more money you could create a scheme where it actually has some benefit for your children too.

I know my mum's on a scheme where she gets paid out at retirement, death or permanent disablement, whichever comes first (how terrible does that sound!) Covers all basis I think.

I had life insurance, which I unfortunately let lapse when I became a student and changed bank accounts (*thumps head* stupid stupid stupid!!!) which was $30 a month for $100K life cover, $50K disablement cover and $50K terminal illness cover (all completely separate). I figured that I don't have much to leave when I die, so I would do something so Mum and Dad aren't left with my funeral costs and have something left to help them out with their retirement. Of course, now, it would have gone part to DF, and part to Mum and Dad, and once we have kids, all to DF. The total disablement and terminal illness was so that I didn't have to work if I got sick - I could make the most of what time i had left, or could support myself without a benefit, or perhaps buy a house suitable for any needs that I had without having to rely on a rental being available. I looked into getting it again at the end of last year but with finances as they are and my health issues, we just can't afford it. We would survive if DF didn't have work, because I can work more hours (I only do 10 a week at the moment) and get far more than he earned, but the small amount I bring in a week is needed on top of his wages.

I digress. Death can come at ANY time (who knows, maybe next week? Hopefully not, but you never know) while retirement isn't until you're 65.

Edited by minik8e

on this insurance note... I also strongly urge anyone travelling overseas - even if for a weekend to OZ - to get travel insurance.

My story - My Girlfriend travelled to oz for a long weekend leaving her son and hubby in NZ. Her first trip overseas and she was catching up with an ozzie friend. They were both killed in a car crash while she was in oz. I NEVER want to get a phone call like that EVER again!
Anyways she didnt take out travel insurance. Her body coming home was held up and in the end her hubby had to sue the friends car insurer and estate etc to cover costs of bringing body home, to provide for her son etc.

Please - ALWAYS get travel insurance. It will make it easier on your family, and could provide for your children. I Wont let DH leave NZ even for the day without it now. Hopefully it will be a waste of $40 etc and we wont ever need it but who knows...

I would get life - my dad had a cardiac arrest a few years ago and no insurance company will touch him with a barge pole now. You never know what will happen and should somthing serious happen to you or your partner you may find that getting life insurance later becomes impossible. whereas saving for retirement is always going to be "allowed". hope you get my drift. Once i start working we are getting life insurance - luckily the PPTA seem to be fairly good with subsidies and cover for all family.