Insurance cover may help protect you against life’s uncertainties. It can help protect your income, wealth, lifestyle and even your family. By having an insurance strategy, you can relax knowing that you have taken an important step towards protecting you and your family’s lifestyle.
Insurance through your super account may be a tax-effective way to cover the cost of insurance outside of your take home pay and you don’t have to remember to pay for it. Contributions are generally taxed at a concessional rate of 15%. Please speak with your financial adviser or a registered tax agent to obtain financial advice tailored to your own personal circumstances.
You may also, depending on the product, be eligible for automatic acceptance, meaning that you won’t be required to undertake any medical tests, or provide any evidence of good health to the insurer. The types of insurances available, conditions and level of your insurance cover will be specific to the super product or your plan - and are set out in the Product Disclosure Statement and/or Insurance Guide.
28:43 Recorded 11 June 2019
Did you know that the insurance in super Government changes start from 1 July 2019? Find out if your account is impacted by automatic cancellation of insurance in super by listening to MLC's informative new podcast.
Information current as at 21 June 2019. This communication has been prepared by NULIS Nominees Australia Limited (‘NULIS’) ABN 80 008 515 633 AFSL 236465, in its capacity as trustee of the MLC Super Fund. NULIS is a member of the National Australia Bank group of companies (‘NAB Group’). Where insurance cover is provided through policies issued by MLC Limited to NULIS, please note that MLC Limited is part of the Nippon Life Insurance Group and not a part of the NAB Group of Companies and MLC Limited uses the MLC brand under licence. An interest in the MLC Super Fund, including interests arising from insurance cover, doesn’t represent a deposit or liability with the NAB or other related bodies corporate of NAB nor is it guaranteed by NAB. Any advice provided and information in this communication is of a general nature only and does not take into account your objectives, financial situation or needs. Before you make any decision, you should obtain professional advice from your licensed financial adviser. Any opinions expressed constitute our views at the time of issue and are subject to change.
Louise was 32, single and enjoying her career as an architect when she had a major car accident that left her hospitalised for 6 weeks and unable to work for 5 months.
Her insurance through her employer’s superannuation included income protection cover, which paid a benefit for up to two years. This meant Louise received fortnightly benefits of 75% of her income for the time she was off work – helping cover her essential living costs during this time.
Without income protection, Louise would have had to give up her city apartment and move back in with her parents. She may also have had to go into debt to fund her other living costs. But with the protection of a regular income protection benefit, Louise could maintain her financial independence – and stay focused on her own recovery.
Hussein (30) and Liana (29) were the proud parents of twin baby girls, when Hussein was tragically killed in a car accident.
Liana worked part time while the girls stayed with her parents, but her income was insufficient to cover their mortgage and living costs. This meant she had to sell the family home in a depressed market, getting less for it than what they paid and leaving her with a substantial debt to pay off.
If Hussein had life cover, Liana would potentially have been able to pay off the mortgage or reduce it to a level she could pay off on one income - giving her and the girls long term financial security.
Daniel was 24 and living life to the full when he had a serious surfing accident that left him totally and permanently disabled, and unable to ever work again. He didn’t have any TPD insurance.
Daniel’s parents, Ron and Sarah, had paid off the family home and were looking forward to a financially secure retirement. After Daniel’s accident however, they had to take on new debt and refinance their home to help pay for Daniel’s rehabilitation and ongoing care costs, and to adapt their home for wheelchair access.
With TPD cover, Daniel would have received a lump sum payment to contribute to the costs of his care, providing him with greater financial independence while ensuring his parents were financially secure in retirement. The lump sum payment could have also helped replace the income and superannuation he would have otherwise earned - providing valuable funds to live on into the future.