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Think ahead. Act now for the future

Insurance if the unexpected happens

There’s little doubt insurance can help ease the strain when the unexpected happens. Even if you’re in great health now, your situation could change at any time. An injury or illness could put you out of action temporarily or permanently, or cause your untimely death, putting you and your loved ones under financial stress as you deal with ongoing living expenses with less income. So, no matter what stage of life you’ve reached, there can be significant advantages for you having insurance cover in place.

What insurance in super do you have

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Do you know if you have insurance in super? And do you know if you have the type and amount of cover that’s right for you? Knowing this is the first step you can take towards making sure you have financial protection for when you need it the most.

Everyone should be able to protect their future and have financial security if something ever happens. Having the right insurance can be really important. Here are three main insurance types within super for you to consider*:

Death cover

paid on the death of the insured member or if they’re diagnosed as terminally ill with a life expectancy of generally 12 or 24 months.

Total & Permanent Disability (TPD)

paid if an insured member becomes disabled and is unable to ever work again or unable to look after themselves.

Income Protection

provides a replacement income of a specified amount for members who are unable to work due to illness or injury. [This can also be referred to as salary continuance insurance].

*We recommend that you seek advice from a financial adviser to obtain advice tailored to your own personal circumstances.

What insurance do you need?

Choosing insurance cover that might suit you and the amount of cover you’ll need, will depend on your personal circumstances. When it comes to determining your insurance needs, you may need to consider* things such as:

  • your income
  • how many children or other dependants you have
  • whether you earn the sole income in your family, or contribute a portion of income to the family budget
  • your level of debt (that is, mortgages, credit cards and loans)
  • the value of any available assets such as property, super or investments (and whether they are easily accessed)
  • your family’s current level of expenditure, and
  • whether there are likely to be any significant increases to expenditure (for example education expenses)

*We recommend that you seek help from a financial adviser to obtain advice tailored to your own personal circumstances.

 

When should you review your insurance?

Any time is a good time to review the amount of insurance cover you have in super. It’s most important to review your insurance cover when certain life events occur, like: 

  • getting married or divorced
  • having children
  • receiving a promotion at work or changing your employment arrangements (for example, reducing or increasing your normal working hours, or being made redundant)
  • buying property or any other asset involving a loan
  • starting your own business, and
  • children starting school

It’s also important to review your cover, your occupation rating and employment status to make sure you’re not paying more than you have to for the cost of your insurance. Also, an incorrect occupation rating classification or employment status may impact whether you’re eligible for cover and your ability to make a claim.

How to keep your insurance in super

Due to new super laws rolled out during 2019, your insurance cover through your super may be cancelled if your super account:

  • has a low account balance that is under $6,000 
  • has been inactive — that is, no contributions or rollovers for over 16 months. 

Check out the steps to keep your insurance section.