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InvestopolyAuthor: Stuart Wemyss & Campbell Wallace
Investopoly is a twice-weekly podcast designed to help you make better financial decisions and build wealth with clarity and confidence. Hosted by Stuart (tax adviser, financial adviser, and mortgage broker) and Campbell (senior financial adviser), each episode delivers concise, practical insights grounded in real-world strategy, research, methodologies, and case studies. You will get two episodes each week: a main episode that deep-dives into a single wealth-building topic, and a Q&A episode that answers listener questions and real scenarios. Send your questions to questions@investopoly.com.auWe also writes a weekly blog, and many podcast topics build on those ideas and frameworks. Stuart's forthcoming book, Wealth by Design, will be available in July 2026. Language: en-au Genres: Business, Entrepreneurship, Investing Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Ep 431: How much life insurance do you need: And when to cut it
Episode 431
Tuesday, 20 October, 2026
Read Full Blog HereHave full cover while you’re young and it’s cheap, then cut it back as your assets grow. Income protection matters most, trauma the least.In this episode I explain how we calculate life, TPD and income protection cover, and why the final step is weighing the premium against what that money could earn if you invested it instead. I also cover:Why we always use stepped premiums rather than level premiumsWhy life and TPD belong inside super and income protection outside itChoosing waiting periods and policy definitions for income protectionWhen to review your cover, and why yearly reviews can lull you into keeping too muchThe insurance calculator worksheet is free to download from the new resource site at investopoly.com.au.00:00 Introduction and the new Investopoly resource site 03:57 Insurance as a necessary evil 04:58 Why most advice recommends too much cover 05:55 The four types: life, TPD, income protection and trauma 08:36 TPD insurance: own occupation vs any occupation 10:22 The tension between paying for cover and investing 11:19 Cutting cover back as your asset base grows 13:34 How your insurance needs change across life stages 15:21 Stepped vs level premiums 18:21 How to calculate life and TPD cover 20:42 Weighing affordability against cost 22:33 How much income protection you need 23:26 How premiums and benefits are taxed 25:33 Where to hold life and TPD cover 26:50 Income protection waiting periods 27:55 Policy quality and the three-tier definition 29:01 Why thorough underwriting is worth the hassle 30:06 Trauma insurance: the most optional cover 32:24 When to review your insurance 34:34 Next week: bondsRelated episodes:How much you need to retire (October 2026). Referenced at 00:18, and the cut-back-as-assets-grow argument relies on the same are-you-on-track thinking.The super report episode (July 2026). Related because it covers choosing a super fund, and this episode covers which funds have competitively priced life and TPD cover inside super.Read Stuart's latest book? He's only got 19 reviews on Amazon so far, if Wealth by Design helped you, leaving one would mean a lot: https://www.amazon.com.au/review/create-review?asin=192318654XRun your own business? Check out Business by Design, Stuart and Mena's show on starting, growing and exiting a business, at https://www.businessbydesignpodcast.com/Our most popular free guides:Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes.Download them hereGot a question for the podcast?Email us at questions@investopoly.com.auSubscribe to my weekly blog:Stay connected hereImportantThis podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
