What kinds of insurance can I get through my super, and why does it matter?
EducationArticle6 January 2023
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How can I look after my family through super?
Using super to look after your family
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When ‘you’ becomes two (maybe more), you want insurance cover that won’t bust the family budget.
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One of the benefits of insurance through superannuation is that you and your loved ones are looked after in the event something serious happens to you. But do you know what type of cover you have and whether it’s enough?
Without the right type or amount of insurance cover you or your dependants could struggle financially in the event you become seriously ill, are injured, or become permanently disabled.
Ensuring you have the most appropriate cover for now and into the future, and regularly reviewing the level of insurance you require, is important for your long-term financial and emotional wellbeing.
What you need to protect when you’re young and starting a family (such as your ability to earn an income) will change to what you need to defend as you head to retirement (primarily, our accumulated assets and wealth).
At <<insert super fund name>> we offer three types of life cover to members: life insurance, total and permanent disability (TPD) cover and income protection.
Income protection
If you have a young family to support, a mortgage or regular bills to pay, losing your ability to work temporarily could have devastating consequences.
Without a regular income to keep up your payments, the physical assets that so many of us automatically insure – such as our house and car – may be placed at risk.
Which is why income protection cover could be one of the most important policies you’ll ever own. Because you are your most important asset.
With this type of insurance, you can receive a percentage of your regular salary each month for a certain period if you’re unable to work temporarily due to an accident or illness.
It’s designed to ease the financial and emotional burdens that come with being unable to work, supporting your recovery and lifestyle until you’re confidently back on your feet. You can make rent or mortgage repayments, or even pay for groceries.
It’s not always offered automatically if you’re a new member of a fund and have less than $6,000 in your super balance, but you can always contact your fund to opt in if you want. The premiums are paid automatically from your super account.
Cover is age-based, so the amount and cost of it will change as you get older. If you’d like to adjust it to better fit your circumstances, you can contact your fund to change the waiting period before income protection payments start or for how long the payments continue. (Read more about income protection here.) <<Suggest linking to "Protecting your family's most important asset: your income" article>>
Total and permanent disability
About 12 per cent of Australians under 65 have some level of disability, rising to 50 per cent for those aged 65 and over. This means that the longer we live, the more likely we are to experience some form of disability and that a proportion of us will suffer a disability through illness or injury that prevents us working for the entirety of our adult lives.
There’s nothing that can adequately prepare you for when the worst happens, such as total and permanent disablement (TPD) and being unable to work again.
TPD insurance can provide some peace of mind that your financial obligations will continue to be met by providing a lump sum payment.
You get to choose how you spend the money, depending on your immediate and longer-term needs. You may need to have your rent or mortgage paid, your medical bills and children’s education covered, the costs of hiring a home carer funded, along with any home renovations needed because of your condition.
Death benefit
When you have a young family, the last thing you want to contemplate is not being there for them. Life cover will at least provide for your family financially if the worst was to happen.
It’s designed to relieve financial stress during the most challenging of times for those you love. It offers a lump sum payment to your beneficiaries if you become terminally ill with less than 24 or 12 months to live (depending on the policy), or if you die.
Your family and loved ones will be looked after financially and can use the payment in any way they choose.
How to make sure you have the right cover
- Contact us to check what life insurance you may already have with us.
- Confirm what the benefits are.
- Decide how much cover you need to look after you and your family, cover your bills and mortgage, and provide for your loved ones if anything unexpected happens.
- Review your personal circumstances, such as any pre-existing health conditions, that the insurer needs to know about.
- If you’re not sure about what you need now or into the future, contact us. We can put you in touch with someone who can help.
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Get in touch
Ready to review your life insurance? Give us a call on <<phone number>>, email us on <<email address>> or get in touch through <<website>> to have a chat about the best options for you
1 Australian Institute of Health and Welfare, “People with disability in Australia 2020: in brief, How many people have disability?”, aihw.gov.au, published 2 October 2020, accessed 13 October 2022
eDM, LinkedIn and Socials
eDM
| Subject line | What insurance can you get through super when ‘you’ becomes two (maybe more) |
|---|---|
| Pre-header text | Insurance cover through super that protects but busts the family budget |
| Header image copy | |
| Headline | Using different types of super insurance to safeguard you and your family |
| Salutation | Dear <name> |
| Introduction | It’s hard to think about insurance when you’re young and healthy. But safeguarding your financial health can be one of the most valuable things you do early in life. |
| Body | When you have a young family, the last thing you want is to not be around for them. Ensuring you have life insurance, and the right level of cover for your needs, is one way of ensuring your family’s financial and emotional wellbeing if you can no longer provide for them. There are three levels of life insurance generally available: Income protection Being unable to work temporarily can have devastating consequences when you have a young family. Without a regular income to keep up payments, the physical assets that so many of us insure – such as our house and car – may be at risk. You can potentially receive more than 75% of your salary each month for a set period if you’re unable to work due to an accident or illness. It starts when you’re 25, if you have a super balance of at least $6,000 and you’re receiving employer contributions. Total and permanent disability (TPD) TPD provides a lump sum or partial payments for ongoing costs if you’re injured or ill and unable to work again. This might include your rent or mortgage, medical bills and school fees, home care or renovations. Death cover This offers a lump sum payment to your beneficiaries if you become terminally ill with less than 24 months to live, or if you die. Your family and loved ones will be looked after financially and can use the payment in any way they choose. |
| CTA | To learn more, read our full article <here> |
| Sign-off | Regards, <name/team> |
| Disclaimer | <<disclaimer copy>> |
LinkedIn post
| Introduction | It’s hard to think about insurance when you’re young and healthy. But safeguarding your financial health can be one of the most valuable things you do early in life. |
|---|---|
| Body | There are three levels of life insurance generally available that can be tailored to your needs: Income protection Being unable to work temporarily can have dire consequences when you have a young family. With no income make payments, the assets that so many of us insure – such as our house and car – may be at risk. You can potentially receive more than 75% of your salary each month for a set period if you’re unable to work due to an accident or illness. It starts when you’re 25, if you have super of more than $6,000 and you’re receiving employer contributions. Total and permanent disability (TPD) This provides a lump sum payment for ongoing costs if you’re injured or ill and unable to work again. Death cover This provides a lump sum payment to your beneficiaries if you become terminally ill with less than 24 months to live, or if you die. |
| CTA | To learn more, read our full article <here>. |
Social post
| Introduction | Why would you want to think about life insurance when you’re young and healthy with a growing family and happy home? |
|---|---|
| Body | Because it’s one way you have of safeguarding your financial health – and it can be one of the most valuable things you do early in life. |
| CTA | To learn more, read our full article <here> |
This information provides an overview only on specific topics and may be limited in scope or subject to qualifications and generalisations. It is provided for your use with insureds and superannuation fund members.
The information provided is also designed to be provided to insureds and superannuation fund members under your own name and any applicable licenses. You will need to consider whether the information is required to be changed or qualified in doing so. To the extent that there is inconsistency between the information on this website and the relevant policy, the policy will take precedence. You should take professional advice and review the appropriateness of the information before it is used by you.
This information does not consider any specific personal needs, objectives, or financial circumstances.
© Zurich Australia Limited ABN 92 000 010 195, AFSL 232510. Information within it is current as at May 2023 but may be subject to change. Updated information will be available by contacting Customer Service on 131 551.
