what if you're sick long term in Sydney

[Guest]

Employer actually pays all my super insurance / fees - but is of course part of my total remuneration package, so is sure to be at my cost somewhere. IFA (who's fees are also a deductible) advises that buying through super is pre-tax and therefore efficient way of doing it -- moot because as I say employer covers that aspect.

 

Yes, so did mine but the % was the same with or without the insurance, the impact being less actually being invested in my pension. The insurance premiums were taken by default but you could opt out.If you can afford to pay for income protection and critical illness cover separately you may be better doing so. As others have said there are benefits it being separate from your employer.

 

I was perfectly happy with mine too but I did cancel when I left that employer otherwise the premiums would still have been taken but from the sum invested so over the 15 years or more until I retire there could have ended up being virtually no pension fund left.

[Guest]

Insurance is appropriate.

It is unrealistic to expect the taxpayer to always pick up the tab. The country can't afford it.

 

Most insurance companies don't pay out until 6 months after illness. So it is rare to be in that situation where you are off sick for over 6 months.

But it is worth considering if you have a large mortgage and are th main/only breadwinner.

 

It's not the tax payer it's the employer that pays it above the SSP level - which is a very small amount on a par with unemployment benefit.

[Parley]

Absolutely! That's something we made sure we had. Happily, never needed to use it.

 

So a waste of money then.

[Parley]

I doubt whether Arthritis will be covered by your policy anyway LR ?

[Marisawright]

So a waste of money then.

 

So you never insure anything, @parleycross?

[bristolman]

Insurance could always be looked at as a waste of money if you never claim.

[Guest The Pom Queen]

 

I keep telling ya, high sex drive isn't an illness. But if you're looking for an outlet x x x

@Peach, now you tell me.

[Petals]

Honestly you just have to hope you do not get long term sickness if you have no family here to support you. My daughter has a terminal illness and she just had to move home with us whilst she had treatment. She was fine she could do this. As migrants we never had family here but fortunately we did not have ill health either. If everyone worried about getting ill no-one would migrate. If its important for you t have good social welfare I would not recommend moving to Aus as our social welfare can be a bit hit and miss and if you have any money or investments you need to use those first. Even the aged pension is means tested so that people spend their own money first before being eligible.

Edited August 8, 2015 by Petals

[Parley]

Surely you are not suggesting the age pension shouldn't be means tested ?

 

I hope not.

[Petals]

I sure am it was only means tested until 70 before and everyone over 70 got the pension. I think I earned my pension I brought up my children with no child benefit, not hand outs that are provided to people bringing up children today.

We just got on with it and paid our taxes and did not get paid super until 1990, so many many self funded retirees have supported themselves and are now giving support to their children again through taxation so that those people can get the family benefits etc. So yes pensioners have earned their pension. After all its not that much and we are more deserving than the people who are negative gearing and minimising their taxes. We never had that opportunity.

 

I have done my bit and I want it recognised by way of pension.

 

I would not mind if they just lifted the interest rates to a decent level, they cannot have it both ways, lol

Edited August 8, 2015 by Petals

[Parley]

The pension is a safety net for poor people.

Wealthy people should not be receiving it.

 

It is different in the UK where you contribute for it through your working life.

In Australia you don't. Whether you pay taxes or not you get the pension if you meet the age, asset and income requirements.

[toOZ2012]

Just want to add a few things (Consult your IFA)

1) Make sure your income protection is for "own occupation"

2) Income protection through super is very cheap but they usually only last for 2 years and guess what - pays into your super account not you. Your super account then has to satisfy a condition of release and it gets even more complex - the definition of disability for IP may not be the same as your super's.

3) If you can sustain in the short term without IP then you can try a hybrid approach where you take IP insurance outside of super as well but with a 2 year waiting period and pays till 65 or 67 so you pay less premiums. So your super IP kicks in first and then the outside-super one comes in later. This again can be complex and have to consider quite a few factors.

4) Prove your income at the time of taking out the policy rather than at claim - so much less hassle as your income can change when you transition on to IP

5) Take critical illness cover if you can afford it.

6) Same thing with TPD - Your super may not cover you for a "own occupation" scenario. Can always supplement that TPD outside-super with a own-occupation condition.

7) The only insurance that is best done inside super is term-insurance. A 1mil policy inside super costs roughly the same as $100k to $150k policy outside-super. Again there are tax implications to consider but with such a big difference - I think it's a no-brainer.

8) Don't forget to add binding nomination in your super account.

9) If you have a mortgage, talk to you back about taking a *holiday* from payments - you can convert your payments to interest only and then the bank will capitalize those payments for 6 to 12 months (subject to maximum LVR and approval ofcourse).

[toOZ2012]

The pension is a safety net for poor people.

Wealthy people should not be receiving it.

 

I will probably get a lot of heat for this but not including the family home in the means test is not fair to the tax payer.

 

EDIT: To be fair - it can be something like home valued over the median price or something. Too many *pensioners* accessing the aged pension with million dollar homes that are exempt.

Edited August 13, 2015 by toOZ2012

[flag of convenience]

Hi all,

 

This is a what-if question, not a real case. I checked what financial support you get if you get a long-term sickness and this looks quite scary :

 

- 10 days paid by the employer, so clearly this applies to short-term sickness like colds, flu, etc.

- sickness allowance paid by state : 520 aud fortnightly for a single person without children. They seem to check for assets before paying..

- waiting period for new immigrants : 2 years (!)

 

Sydney being such an expensive city, I have no idea how someone could survive with 12.000 aud/year should this unlucky person have a sickness like cancer, need multiple surgery after an accident or get some other illness that would prevent him/her from working for a year or more. FYI the lifetime risk of getting a cancer is +- 40%.

 

I come from a country in Europe where the protection in case of sickness is much better and the cost of living much lower.

 

Is this really that bad or am I missing something here ?

 

Thanks,

 

Not sure which European country you refer to but nothing in Australia to compare with the better European countries. That applies to a host of benefits from rents to pension.

Australia is very expensive with a falling economy. All points to weigh up before giving up what you have at present.

It may even pay depending on age, I suppose, as to whether you continue payment into your present country's health system, as to be able to access it if so required.

All issues worth considering before leaving.

[flag of convenience]

I will probably get a lot of heat for this but not including the family home in the means test is not fair to the tax payer.

 

EDIT: To be fair - it can be something like home valued over the median price or something. Too many *pensioners* accessing the aged pension with million dollar homes that are exempt.

 

Fully agree. Even a reverse type mortgage paying down the house together with a part pension would be acceptable.

[flag of convenience]

Surely you are not suggesting the age pension shouldn't be means tested ?

 

I hope not.

 

The rules should be far more flexible than at present. As thus it would encourage greater savings (though government prefers money to be spent) and as such a combination of pension and savings to ensure the resemblance of a decent life, rather than living at the margins, as workers incur in other countries.

It is yet another attack on the poorer members of society meanwhile the rorts galore continue with the rich and superannuation.

A very unequal country indeed.

[flag of convenience]

Insurance is appropriate.

It is unrealistic to expect the taxpayer to always pick up the tab. The country can't afford it.

 

Most insurance companies don't pay out until 6 months after illness. So it is rare to be in that situation where you are off sick for over 6 months.

But it is worth considering if you have a large mortgage and are th main/only breadwinner.

 

So repair the rorts within the superannuation system then. Always the better off get away with it and the poorer members of society pay the tab.

[akiralx]

Just want to add a few things (Consult your IFA)

1) Make sure your income protection is for "own occupation"

2) Income protection through super is very cheap but they usually only last for 2 years and guess what - pays into your super account not you. Your super account then has to satisfy a condition of release and it gets even more complex - the definition of disability for IP may not be the same as your super's.

 

SCI (salary continuance insurance) payments are made directly to the member, not into their super account.

[toOZ2012]

SCI (salary continuance insurance) payments are made directly to the member, not into their super account.

 

You are right. I don't know where I read that but It got stuck in my mind like that. Thanks for pointing out.

 

Do you happen to know which superfunds have the best insurance policies?

[newjez]

The pension is a safety net for poor people.

Wealthy people should not be receiving it.

 

It is different in the UK where you contribute for it through your working life.

In Australia you don't. Whether you pay taxes or not you get the pension if you meet the age, asset and income requirements.

 

Do you really believe they have a separate box where they put the NI? It's just another tax.

[newjez]

Can you get IPS to cover existing illness after a waiting period? I can't get travel nor life insurance at the moment.

 

 

Travel does depend on where you are travelling to. US is a nono. But many places are affordable.