In determining the appropriate entity to hold insurance, the following default settings are used:
| Policy type | Any occupation definition | Own occupation definition | Income >= first tax bracket | Income <= first tax bracket |
|---|---|---|---|---|
| Life | Superannuation | Superannuation | Superannuation | Superannuation |
| TPD | Superannuation | Non-superannuation | Superannuation | Superannuation |
| Income protection | Non-superannuation | Non-superannuation | Non-superannuation | Superannuation |
| Trauma | Non-superannuation | Non-superannuation | Non-superannuation | Non-superannuation |
Note: For policies that are available both inside and outside of superannuation, PrimeSolve will run 2 policy quotes to send to the final optimisation step for consideration.
If the client has no available cashflow to cover premiums then insurance policies that may typically be preferable to be held outside of superannuation such as Income Protection insurance will ultimately be recommended to be held inside of superannuation.
Note: The assumptions around waiting period will utilise information collated around accumulated sick leave and refer back to the cost v under insurance objectives question in order to arrive at an appropriate waiting period.
The assumptions around waiting and benefit periods are as follows:
| Quote assumptions | Default |
|---|---|
| Waiting period | The engine has the following waiting period options (14,30,45,60,90,180,365,730). |
| a | If being under-insured is the highest concern, the initial default waiting period is 14 days. |
| b | Otherwise the default waiting period is 30 days. |
| c | The waiting period can be adjusted if the client has sick leave greater than the default. Under this scenario the waiting period will become the MINIMUN of sick leave and the next avaiable waiting period option. |
| Example: | Client A is more concerned about the cost of insurance than being underinsured. Their default waiting period is 30 days. However, Client A also has 55 days accumulated sick leave. In this scenario the waiting period will become the highest default setting that accumulated sick leaves is greater than (e.g. 45 days). |
| Benefit period: | The default benefit period is until age 65 for a stand alone retail quote. |
| In a scenario whereby we are considering holding 2 policies, 1 in group and 1 in retail the group benefit period assumed is 2 years. However, note that the secondary retail policy in this scenario would have an assumed waiting period of 2 years but a benefit until 65. Therefore total coverage would still extend to 65. | |
| Occupations | Each occupation has a default assumption for “any” or “own” occupation status. Please click this link to review each occupation. |
To establish if a quote option needs to be run for both group and retail, the engine will refer back to the preferred superannuation products established at the superannuation comparison step. If one of the preferred products has a group quote available, it will be necessary to run both a group and retail quote for comparison.
To view which superannuation funds have a group policy, see the below link:
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