Do you have enough insurance?
|Life, total & permanent disability (TPD) and income protection insurance (salary continuance) are frequently recommended by financial institutions and advisers.
The main reason for having personal insurance is to protect you, your family and loved ones should you no longer be able to provide support. It forms an important part of your overall financial plan. So make sure you have adequate cover, especially if your circumstances change.
Get Insurance Cover through Super
|Taking out life and total and permanent disability insurance through super will most likely be a much simpler and cheaper way to purchase insurance and protect your family should anything happen to you.
How does it work?
Insurance that is taken out via a personal policy is paid for via after-tax dollars. However purchasing insurance through super means that the money is taken from your super account which is generally pre tax dollars. This is a far more tax-effective way of paying for insurance.
Who is eligible?
Most people are eligible. You can normally take out cover when you join a super fund, or are transferring to a new fund. The default fund of your employer is most likely part of a group insurance plan, where upon joining the super fund, you are eligible to take out cover up to an agreed maximum. Applying for coverage above this maximum will normally require underwriting (that is the assessment of medical evidence requested by the insurer).
What are the next steps?
Contact your super fund to see if you are eligible for insurance coverage. There are a number of rules regarding the taxation of insurance claim proceeds, so speak to an adviser about how best to arrange your policy. Need an adviser? click here