HostPlus Insurance: How does the Barefoot Investors cover compare to the market?

If you’ve been following the Barefoot Investor’s advice, you’re likely considering HostPlus Insurance or already have cover with HostPlus.

In this video, I’m going to show you how to get your own HostPlus quote online, then show you how this compares with the rest of the market. 

BACKGROUND

When comparing HostPlus to the rest of the market, I have considered two main sections:

  1. Price
  2. Features

I’ve assumed by this point that you know how much insurance you need (whatever method you have used). If you are stuck, get your own report using my tool by clicking here.

No matter how you have worked out  the amount of insurance you need, make sure you have done this before going any further.

HOW TO GET A QUOTE WITH HOSTPLUS:

Now you’ve got the amount of insurance you need in front of you, jump across to the HostPlus website. Find the “Insurance” tab on the top of the page and from the drop-down menu, select “insurance premium calculator”.

Enter your basic details in here before selecting the frequency of premiums. My suggestion is to select annual premiums. These work out to be cheaper and considering the premiums are funded from your superannuation balance, there is likely to always be enough money to cover these.

Using your own personal numbers, enter in the levels of cover that you require. I suggest using a the fixed cover option as opposed to a unitised option (check out my video explaining why here).

For the salary continuance, I would suggest a 90 day waiting period. This will cost you approximately 40% less than the premiums for a 30 day wait. NB: this does require you to have a “Mojo Account” or emergency fund to cover you for the additional two months without an income. I suggest a benefit period “to age 65”.

Accept the disclaimer, click “calculate quote” and there you have your very own personalised quote with HostPlus.

HOW DOES THIS COMPARE TO THE MARKET?

#1 – PRICE:

In the video, I have used our independent research software to replicate the same insurance quote across the market that we just completed above. This is the same process I would do for you if you were looking for help as this is different for everyone.

You will notice that initially, the premiums quoted by HostPlus are cheaper than anything in the market. But wait, this is where I am going to share with you a little secret that the insurance companies use to trick you.

Insurance help through super receives a tax credit which essentially means you get a 15% discount on the premiums. HostPlus show their premiums after they have applied the discount, where the comparisons I hav just shown you are before the discount is applied.

Instead of just taking my word for it, I have shown you in the video the quotes from two of the providers from my example – MLC & AIA (click on the company name to see the quotes themselves).

Now you have seen that the price from both of these providers is less than the cost with HostPlus (even though it is not a huge difference).

#2 – FEATURES/BENEFITS:

In the video, I have used the same independent research software to generate a comparison report (check it out here). This gives each product a score out of 100% and then compares the underlying features to see how they compare to each other.

Where the pricing between the 3 companies was very similar, you can see that from a features/benefits perspective (and therefore “quality”) the cover with MLC & AIA start to really pull away.

Now I am not going to pretend that each of the underlying conditions will be relevant to you, my point however is that I have just shown you an example of how you can get a better quality policy for less.

CONCLUSION

The good news – you don’t have to give up the low cost HostPlus account for your super. The other insurance companies are setup to receive payment for the premiums from your HostPlus account. 

This means that you can pick the most appropriate super fund & the most appropriate insurance policy without worrying about them being in the same place.

Want some help comparing your cover levels, send me an email [email protected] and I will see how I can help.

 

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