The top 3 things you need to know about life insurance in super

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The top 3 things you need to know about life insurance in super
Here’s what’s on offer through life insurance in super

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Insurance through super is an affordable way to protect your lifestyle – even if you have health conditions or a high-risk career.

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 Life insurance isn’t just about getting money if you die unexpectedly; it’s about protecting your lifestyle and keeping money coming in if you’re not able to earn an income.

We know life insurance probably isn’t near the top of your list of interests but taking a couple of minutes to understand it and ensure you have the right coverage can mean that if something does happen, the people you care about most will be taken care of.

Here’s what you need to know:

Types of insurance

There are three different types of life insurance generally offered through your superannuation fund.

Life insurance

Often called death insurance, this is probably what you think about when you think about life insurance. It’s a payment if you die unexpectedly or are diagnosed with a terminal illness. Even though you may not have a lot of debts or financial responsibilities, putting coverage in place now means you’re covered in the future if you decide to have a mortgage or a family.

Income protection insurance

Income protection can replace your income if you get sick or injured and can’t work for an extended period. You can set the length of the coverage, such as two or 5 years, or until you reach a certain age, such as 65.

Total and permanent disability

As the name suggests, insurance provides a payment if you are unlikely to ever be able to work again.

You can get affordable insurance easily though your super

Until recently, everyone who had a superannuation account likely also had life insurance included. Recent changes mean you may not have coverage.

Here’s the good news: getting covered through super is fairly simple – just give us a call.

Getting your insurance through super can be significantly cheaper than going out and buying your own because funds buy policies in bulk, which means the premiums are cheaper. You can also change your cover easily to better suit your situation.

Because your premiums are paid out of your superannuation account, you don’t have to worry about paying them out of pocket when the bill comes due and the money is taxed at 15%, which is lower than the marginal tax rate for most people.

Fewer health checks and coverage for high-risk jobs

There are benefits to insurance through super other than the money.

Most funds provide a default level of cover without a health check. They’re able to do this because they buy policies in bulk and make certain general assumptions about people. The base level of coverage may be lower than what you can get outside super, but this means it’s easier to get and cheaper.

If you want to increase coverage, health checks may be required. It’s a good idea generally, but specifically for this, to check the product disclosure statement (PDS) for the insurance, which will be available on your super fund’s website. This will talk about exclusions and how they treat pre-existing conditions.

If you work in a high-risk job, you know how expensive insurance can be. The same goes for having a health condition that makes it difficult to get insurance. Most people are still able to get insurance through super. It can take away major financial stress for your future.

How to check your insurance

You can get your insurance needs taken care of fairly quickly by giving us a call on <<phone number>>. In fact, most funds offer a limited financial advice service to help you determine the right coverage for your needs. Quick, easy, and affordable. That’s insurance through super.