MikeW Posted May 9, 2011 Share Posted May 9, 2011 Hi, Going to Canberra (from UK) soon, and I am wandering what to do with finances such as: Life insurance Critical Illness Pension I've been paying these in the UK - am I able to continue paying into these policies when in Australia or will I have to start again? If I have to start again I imagine it'll cost more as obviously I'm older since I started the payments. Thanks, Mike. Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted May 10, 2011 Share Posted May 10, 2011 Hi, Going to Canberra (from UK) soon, and I am wandering what to do with finances such as: Life insurance Critical Illness Pension I've been paying these in the UK - am I able to continue paying into these policies when in Australia or will I have to start again? If I have to start again I imagine it'll cost more as obviously I'm older since I started the payments. Thanks, Mike. Hi Mike Re Life/Critical Illness cover: This will depend on the company that you have it with and when it was taken out. Some companies will allow it to continue as long as it is paid from a UK account, other companies will not allow it to continue if you are not living in the UK. You will need to contact the specific companies and ask them directly, make sure that you get the answer from them in writing. It may make sense to keep it if you can but when you arrive in Oz (if you are able to keep it) you can look around as to what it might cost you here. Be aware though that you will need to compare apples with apples as the most common method of setting up life/critical illness insurance in the UK was to use level /guaranteed premiums (generally reviewed every 5 years) whereas in Australia stepped premiums are the most common which increase every year. The other thing to consider is whether the policy you have is a decreasing term or level term policy. Re UK Pension: What are your circumstances, will you be a permanent or temporary resident? Do you have more then $450,000 in balances? Wll you want to draw on your pensions in the first few years of moving to Australia? Generally there is no rush to do anything with your UK Pensions (on occasion taking action prior to moving is warranted), and therefore waiting until you have settled in Australia before looking into what should be done with them is a good idea. Pensions can be transferred to the Australian equivalent (superannuation funds) but you will need to take advice as to whether it is in your interests to do so. Regards Andy Link to comment Share on other sites More sharing options...
MikeW Posted May 10, 2011 Author Share Posted May 10, 2011 Andy - many thanks for your advice. The pension is much less than $450,000 and I will not be drawing any money out (I'm under 40). I will contact each company. Thanks again, Mike. Link to comment Share on other sites More sharing options...
newjez Posted May 10, 2011 Share Posted May 10, 2011 Hi Andrew - if I can ask you a quicky. I've been told that health insurance is not dependant on pre existing conditions. Is this the same with life insurance? If you have a pre existing condition, will that prevent you from taking out life insurance? Link to comment Share on other sites More sharing options...
Quoll Posted May 10, 2011 Share Posted May 10, 2011 Hi Andrew - if I can ask you a quicky. I've been told that health insurance is not dependant on pre existing conditions. Is this the same with life insurance? If you have a pre existing condition, will that prevent you from taking out life insurance? Hmm, I think you will find that health insurance is impacted by pre-existing conditions even if there is a compliance period before expenses arising because of that condition are paid. Life insurance policies usually take into account pre-existing conditions as well and whether that means they increase your premiums or decline your application I have no idea. There are some bog standard life policies which advertise that they dont mind what you have but how useful they are I dont know. When you get to Canberra I can point you in the direction of a good financial counsellor if you are interested. I know that he also deals with people who are in UK either temp or permanently so he has a good grasp of the issues. No affiliation etc. Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted May 15, 2011 Share Posted May 15, 2011 Hi Andrew - if I can ask you a quicky. I've been told that health insurance is not dependant on pre existing conditions. Is this the same with life insurance? If you have a pre existing condition, will that prevent you from taking out life insurance? As Quoll states, most life insurance companies will want you to complete an application that will involve answering questions on your medical/health history. The outcome could be that they exclude a certain condition, decline your application (in extreme cases) or load (increase) the premium. There may be ways of taking out certain amounts of cover without health/medical questions, for example a default amount may be offered when you apply for a superannuation fund with some companies especially if it is the default scheme offered by your employer. Regards Andy Link to comment Share on other sites More sharing options...
fish.01 Posted June 4, 2011 Share Posted June 4, 2011 Hi Andrew - if I can ask you a quicky. I've been told that health insurance is not dependant on pre existing conditions. Is this the same with life insurance? If you have a pre existing condition, will that prevent you from taking out life insurance? You're right that getting health insurance is not dependent on whether you have a pre-existing condition. A pre existing condition cannot be used to deny you health insurance. It also can't be used to charge you a higher premium. All funds can do is apply a 12 month waiting period before you can claim for a pre-existing condition (if they couldn't do this everyone would join the day before their pre-existing condition needed treatment). Life insurance is totally different and does not have this type of legislation protecting it. Link to comment Share on other sites More sharing options...
Guest p1ug Posted June 5, 2011 Share Posted June 5, 2011 Hi guys we have had this brought to our attention Thought we should share it with you if you are thinking of transferring your pensions Expats & Emigrating 3 top tips 0408101.doc Expats & Emigrating 3 top tips 0408101.doc Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 5, 2011 Share Posted June 5, 2011 Hi guyswe have had this brought to our attention Thought we should share it with you if you are thinking of transferring your pensions Hi there I have read the attachment (there is some out of date information in it), can I ask who brought it to your attention, was it a UK pension transfer advisory firm? Regards Andy Link to comment Share on other sites More sharing options...
Guest p1ug Posted June 5, 2011 Share Posted June 5, 2011 Yes it was a UK financial advisor via a friend So not in an official capacity. Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 7, 2011 Share Posted June 7, 2011 Thank you. I have cut and pasted this extract from the document, my comments are below it. "WARNING: Under current Australian/New Zealander legislation, Britons who emigrate leaving their pension funds frozen in the UK may have to pay tax as much as 50% on the growth on these funds from the time they become Australian residents to the time they retire and start drawing a pension. You should also bear in mind that some individuals moving to Australia have 6 months from arriving in the country to make a transfer of pension funds without incurring a charge to Australian tax. Beware - the clock can start ticking though on day 1 – this is dependent on the visa and the exact relationship the client has with the country – so advice should be sought well before the move. These rules also bite if the pension is transferred at any time before retirement, giving rise to a tax bill. Any move to transfer funds built up in the UK from one UK scheme to another will trigger a similar tax bill UNLESS client takes action before moving. Please note that changes to these rules are in the pipeline. The Australian Assistant Treasurer announced in May 2010 that they are looking at repealing the Foreign Investment Fund rules. This could therefore mean that the tax charges mentioned in this WARNING section and the 6 month window will cease to be of relevance. Further details are awaited" Regarding the above Warning, this is quite misleading and unfortunately a lot of people make transfers based on information like this. If someone does decide to transfer their pension to Australia after 6 months of arriving in Australia then yes there may be some tax implications however these can usually always be mitigated. A transfer of a UK pension should be done based on what advantages having the money over here may bring, not based on statements around how much tax you will have to pay if you do not transfer your fund quickly. Regards Andy Link to comment Share on other sites More sharing options...
Guest andrewstone81 Posted November 1, 2011 Share Posted November 1, 2011 Hey, guys. I am also planning a course in financial planning and I have done graduation in accounts field , would it be good to have a financial planning course from Orlando because I am from Orlando. Can you suggest me good university and criteria to get in there. Link to comment Share on other sites More sharing options...
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