Superannuation

Another benefit of having insurance within superannuation is that in some cases premiums may be cheaper, particularly where you join through an employer that may have access to group insurance rates (which will generally cover a larger group of members at a cheaper rate than that which would otherwise apply to an individual). Further, personal insurances taken inside of super are paid from the member’s super balance and therefore do not require a separate cash payment. Also, super funds provide automatic acceptance of Life and TPD insurance and often income protection insurance for their members. Members are automatically provided with a certain level of insurance without the need for medical checks.

Your Superannuation Fund

If you have your super statement in front of you, have a look at the current insurance that you have. Is it appropriate to your personal circumstances and sufficient to cover all of your needs and requirements if you were to die or become incapacitated?

If you are unsure, it may be worthwhile speaking to a financial adviser as they can assist you in determining appropriate types and levels of cover.

Please note: From 1 July 2019, trustees will cancel insurance cover for members with inactive accounts. Under the law, super funds will cancel insurance (such as life, total and permanent disability or income protection insurance) on inactive super accounts that haven’t received contributions or at least 16 months unless a member has directed the trustee to maintain the insurance. However, prior to the insurance ceasing, trustees will be required to notify a member where they have been identified as having an inactive account and provide them with the opportunity to take steps to maintain their insurance if they desire.