How to get the right insurance cover for you

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Get the right insurance for you

Right-sizing your cover

Be smart about your options

Be an (insurance) cover star

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Here’s how to choose life cover that’s right for you and your loved ones.

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A life insurance payout helps look after your partner and dependants if you’re no longer around. So how do you choose insurance that’s right for your family’s situation? Look for cover that: 

• works for you and your family’s needs 
• is value for money.

What cover do you need?

Super funds offer members three types of life insurance:

• life cover, which pays a lump sum, or an income stream in some cases, to your beneficiaries if you die, or to you if you become terminally ill. This cover can help make sure your family is cared for financially (minors receive a lump sum rather than an income stream). 
• total and permanent disability (TPD) insurance, which pays a lump sum if you’re seriously disabled and unable to work again.
• income protection insurance, which pays you an income for a period (either a set number of years or up to a certain age) if you can't work temporarily due to an illness or injury. 

Decide which of these covers can provide what you need. For example, if you have a family, life insurance can help ensure that if you’re no longer around, your family will have some financial security. Income protection and TPD could protect your income if illness or injury means you are off work temporarily – or if it’s even more serious and you’re unable to work altogether. 

How much do you need?

As well as deciding the type of cover that’s right for you, you should also work out how much you need. For example, if you die, life insurance can help your family meet ongoing expenses such as mortgage or rent, car repayments, education, healthcare and even holidays. And they can use the payout to cover any unpaid debts you might have, such as credit cards.

You should also think about how much you’d need if illness or injury meant you couldn’t work for a while or even permanently if you are seriously disabled. Consider how much sick leave and savings or investments that you can draw on. Then supplement what you need with insurance.

To work out what’s an appropriate level of cover for your situation, use the calculator at ‘How much cover do you need?’ [link to How much cover do you need? article]

Is it value for money?

Paying insurance premiums out of your salary can really add up – especially if you’re supporting a family or paying off a mortgage. Insurance through superannuation can be more manageable as it won’t affect your day-to-day budget.

Superannuation funds buy insurance cover in bulk – which means their premiums are often cheaper than if you buy a policy individually. 

If you would like more cover than what your super offers, you can always take out an additional policy outside of super – either directly through the insurer, or through a financial adviser or insurance broker.

Is it easy to manage?

When you’re working and taking care of a family, life is busy and complex – so insurance should be simple. Holding insurance through your super fund means your fund pays the premiums automatically from your super account. So, you never need to remember the payment date – which couldn’t be simpler.

Your insurance should also be flexible enough to change as your life changes. Once you start a family or buy a home, having a financial safety net is important, so you might want to increase your life cover. If you have insurance through your super, you can contact your super fund and ask them to organise for your cover to be increased to meet your circumstances. (But remember, your premiums will rise to pay for the increased cover.)

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Insurance through super can be good value 

By opting into insurance through your super, you gain a base level of cover at a lower cost than if you buy it through a broker or directly through the insurance company. 

Want a review of your life insurance? Give us a call on <<phone number>>, email us on <<email address>> or contact us through <<website address>> to talk about the best options for you.

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“Paying insurance premiums out your salary can really add up – especially if you’re supporting a family or paying off a mortgage. Insurance through superannuation can be more manageable as it won’t affect your day-to-day budget.”