Life insurance vs superannuation?
Printed From: OHbaby!
Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=7725
Printed Date: 02 October 2025 at 4:58am
Software Version: Web Wiz Forums 12.05 - http://www.webwizforums.com
Topic: Life insurance vs superannuation?
Posted By: caraMel
Subject: Life insurance vs superannuation?
Date Posted: 22 May 2007 at 6:35pm
|
DH and I have been talking about which of these is more important/beneficial for us to get.
Hubby thinks that the risk of either of us dying is minimal and therefore it would be smarter to put our money into superannuation at this stage, then think about life insurance further down the track. I think that with 2 young children and a large mortgage life insurance might be wiser. What are your opinions please? Edited to add: We can't afford both at the moment. ------------- Mel, Mummy to E: 6, B: 4 and: 
|
Replies:
Posted By: Leish
Date Posted: 22 May 2007 at 6:39pm
|
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. ------------- http://lilypie.com">  http://lilypie.com">
|
Posted By: Mama2two
Date Posted: 22 May 2007 at 6:53pm
|
How did you manage to get a mortgage without life insurance? It is usually a requirement. I worked in the Industry before finishing work and would say life insurance is the more important as a just incase scenario. Although if something did happen to one of you and you only had the Super you could perhaps cash it in depending on the scheme you entered.
There are companies out there that could do you a deal of both as a package and you could tailor it to suit your budget. We have something along those lines for my DH through Asteron. ------------- http://lilypie.com"> 
http://lilypie.com"> 
|
Posted By: emz
Date Posted: 22 May 2007 at 6:57pm
| 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. |
Posted By: busymum
Date Posted: 22 May 2007 at 8:06pm
What she said  -------------  |
emz wrote:Posted By: Maya
Date Posted: 22 May 2007 at 9:20pm
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. ------------- Maya Grace (28/02/03)
 (02/01/06)
The Gremlins:Sienna Marie & Mercedes Kailah (14/10/06)
Lil miss:Chiara Louise Chloe (09/07/08)
Her ladyship:Rosalia Sophie Anais (18/06/12)
|
Posted By: tashzmum
Date Posted: 22 May 2007 at 9:31pm
|
i would go with life.
as emz said u never know what could happen. df and i both have life insurance and we are still prety young(im 20 and df is 24 today), but u just never know. we arent to worried about super as we are gonna retire as rich dairy farmers  yea right in my dreams!!------------- Natasha Jayde, 1-01-05(7lb3oz) Caroline Elisabeth, 9-04-08 (4lb15oz) Izabella Kate, 9-04-08(6lb7oz) Lexi Brenna, 23-01--2011(6lb6oz) |
Posted By: Bombshell
Date Posted: 22 May 2007 at 9:40pm
|
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!!! |
Posted By: peanut butter
Date Posted: 22 May 2007 at 10:30pm
|
I'd go life insurance. I read somewhere that you also have to consider if something happened to the non breadwinner the other would possibly have to give up work to look after the kids or pay childare so it is not just the one earning money who needs to be insured.
|
Posted By: kebakat
Date Posted: 23 May 2007 at 8:04am
| 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 |
Posted By: fattartsrock
Date Posted: 23 May 2007 at 9:18am
|
I'd say life as well.... I have only *just* got life insurance, Rod ever so tactfully pointed out that I travel alot, and what if I had an accident and left him with the children. ------------- The Honest Un PC Parent of 2, usually stuck in the naughty corner! :P |
Posted By: Jay_R
Date Posted: 23 May 2007 at 10:10am
| 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. |
Posted By: tashzmum
Date Posted: 23 May 2007 at 10:19am
|
oh and one more thing- make sure your wills are up to date when u get life insurance. ------------- Natasha Jayde, 1-01-05(7lb3oz) Caroline Elisabeth, 9-04-08 (4lb15oz) Izabella Kate, 9-04-08(6lb7oz) Lexi Brenna, 23-01--2011(6lb6oz) |
Posted By: emz
Date Posted: 23 May 2007 at 4:18pm
|
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. |
Posted By: mummy_becks
Date Posted: 23 May 2007 at 4:21pm
|
I have a mortgage and don't have life insurance we had to get house insurance to get the mortgage (which we were getting anyway). But I would go with life insurance if I had to, even if its not used while your children are still young it will cover things once you do die. ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |
Posted By: minik8e
Date Posted: 23 May 2007 at 4:29pm
|
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. |
Posted By: caraMel
Date Posted: 23 May 2007 at 4:45pm
|
Thanks for all the replies!!
We're still talking about things but you've all helped my case. ------------- Mel, Mummy to E: 6, B: 4 and:
|
Posted By: Bombshell
Date Posted: 23 May 2007 at 10:14pm
|
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... |
Posted By: Bombshell
Date Posted: 23 May 2007 at 10:15pm
| **sorry I hijacked*** |
Posted By: lizzle
Date Posted: 24 May 2007 at 7:15am
| 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. |