Superannuation is an important financial support that provides money to live on after retirement. Paid by your employer in addition to your salary and wages, superannuation also provides tax benefits. There are several types of superannuation funds and most of them provide life insurance. As there are multiple super funds, the life insurance cover and related aspects are also different, which we explain in this article.
Types of Super Insurance
- Total and Permanent Disability Cover â€“ TPD covers conditions when you become injured, disable and wonâ€™t be able to work again.
- Death Cover â€“ Provides a lump sum amount or as regular income to the beneficiaries when you die.
- Income Protection Cover â€“ Provides an income stream up to a stated period when you suffer from an illness or incapacity to not being able to work.
Benefits You Get From Insurance through Superannuation
- May be cheaper
- Automatic deduction of the premium
- Coverage for you and your family
- You can increase or decrease the cover amount
- No health check-ups required for cover in some super funds
Important Factors to Remember About Insurance through Cover
- Coverage ends at a certain age (generally 65 or 70). To get cover for a longer period you will need to have another policy.
- The default cover may be limited and you may have to look for outside super to meet your needs.
- If there is no beneficiary nominated then the super trustee has the say in deciding who gets paid.
- The claim process may be slower in some cases.
- The insurance premiums may increase when you change jobs.