Insurance in Super

In Australia, it is common to have insurance included through your super. If you want to review your insurance, you can check if you are covered through your super fund. 

There are three types of life insurance that super funds usually offer their members:

Life Cover - When you die or if you have a terminal illness, this cover will pay a lump sum or income stream to your beneficiaries.

Total and Permanent Disability (TPD) Insurance - If you were to ever become seriously injured or sick, and unlikely to work again, this insurance will pay you a benefit. 

Income Protection Insurance - This insurance provides you with an income stream when you can no longer work due to temporary illness or injury.

Most supers will already provide you with life cover and TPD insurance. TPD insurance commonly ends at the age of 65 while life cover usually ends at the age of 70. This is always dependent on your super fund, so it is always recommended to check.

What if I'm under 25-years-old?

Insurance will not be offered to new super fund members under the age of 25 unless you work in a dangerous job. However, you can write to your fund to request insurance.
Navigating supers can be quite tricky. If you need assistance, contact Wagtail Wealth.

Check your insurance through your super account

If you are unsure about what insurance you have connected to your super, you can easily call your super fund, access your super account online or view your super fund’s annual statement and Product Disclosure Statement (PDS).

You should be able to view:

Do you have more than one super account? If you do, you may be paying premiums on multiple insurance policies and therefore reducing retirement savings. Even with multiple insurance policies, you may not be able to claim on numerous policies so it is worthwhile to consider if you need more than one super fund.

For more information on consolidating your super, read our article here.

Loading on Premiums

Are you paying any loading on your premiums when it comes to your insurance in your super? Loading is a percentage increase on the premium and is charged to people that are at higher risk. You could be paying a loading fee if you have a pre-existing medical condition or if you have a high-risk job.

Check if your super fund is making you pay for loading on your premiums. If you have been classified incorrectly, contact them to let them know to ensure you are not paying more than you need to. If you need any support with navigating your super, contact Wagtail Wealth today.

IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.

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