Life Insurance quandry
Hi, taking the plunge with my first question, so here goes.
I have a question that is knawwing away at me, although hubby says there are plenty of other things to worry about - so I thought someone on here may be able to help.
The question is this - we have two life insurances, one endowment we are paying into and will continue whilst in Oz, critical illness cover and two good NHS Pensions (15 yrs each)
Can we continue paying into the life insurances (they have no cash in value) and will they pay out in the event if we are in Oz? Is the critical illness cover worth continuing? Is it easy to get life insurance in Oz?
My OH dad had a serious heart attack at 50, as did his grandfather, and i am paronoid - morbid i know, but i can't handle the idea of being left on my own in Oz with three youngsters to raise with no money. OH does understand - i think he just doesn't want to think about it.
Edith (40 Nurse), Martin (39 Healthcare project engineer), Megan (10), Kieran (8) and Ewan (2)
Hiya Edith and welcome to PIA. I can't help with the life insurance but if I was you I would just ring them and ask. What are you going to do with your NHS pension? I enquired to our pensions department (who are about as useful as a chocolate fireguard) and was told that the pension (13 years worth) would be frozen. In order for me to claim my money when I retire I would have to be resident in this country, I cannot claim it from Oz. I am sure this cannot be right, they also told me that I cannot transfer the money into a private pension, according to them it is with the NHS and there it has to stay. I don't believe any of this can be right but not quite sure where to go now to find out so if you have any ideas or info about this that would be great. What nursing do you do, I am a children's Nurse.
Anyway, sorry I wasn't much help. I am sure someone will be aong who can help. Hope to speak again soon
As a retired Finacial advisor, and a Pension Trustee for my Companies Pension scheme, I hope I can help a bit.
Life Assurance can continue to be paid in the UK, but I would suggest that you need to have some facility for payment from a UK bank account, as it may be difficult to arrange payment from Australia with a fluctuating exchange rate. My son still has policies with a UK company, paid from his UK bank account. As far as the Life policy is concerned, the premiums you pay would depend on the age you were when it was taken out, and may cost quite a lot more now, due to the increase in age. You would be able to take out new policies in Aus. If you do not need the surrender value of the endowment, then it would be best to continue to pay this, as you will lose money if you surrender.
As far as Pensions are concerned, Pensions are a bit of a minefield, as there are so many different schemes available. From memory the National Health scheme is pretty good, and buys years of pension for each year worked. I would suggest that you would have bought, 15/60ths of your final salary, which would be payable when you retire. I think you would not be allowed to transfer this to another scheme.
I have been retired 11 years and are due to collect my old age pension this year, and can either arrange for it to be paid into a bank account in the UK or paid into an Aus account. The only problem with the State scheme is that it is frozen at the level when it is started and does not increase in line with inflation. I think the NHS scheme would probably increase their pension annually as it is deemed a company scheme
Finally Critical Illness cover, I would suggest ceasing this, as it would probably not cover you in Aus, but suggest you ask the provider. I personally am very wary of this type of cover, as all to often, when it is needed it fails to pay out due to the insurance company, finding a clause which negates the cover.
I work in the Insurance industry in New Zealand and regarding critical illness cover, yes it is less likely to be paid out then Income Continuance, but the majority of the Critical Illness claims I get in are accepted, so if it is a low premium, it may be worth getting in Australia. Your Income Continuance cover won't pay 100% of your salary if you are ill and off work (typically 50-75%), so Critical Illness cover can bump you up, depending on the cover, to your full 100% and comes in very handy to many people.
Originally Posted by Hayshake
Thank you all for your replies!
Doh! Pretty obvious thing, getting in touch with the policy providers - think i must be going into mental meltdown.
Trakki, i'm a surgical nurse for the last 15 years.
It's taken 3 months to get a reference off my current employer so as i can send off my ANMC assessment - can't do the visa application til i pass that!!
Hoping i won't have to work so much and so often in oz (dreamland i know!!:daydreaming:)
Thanks again all