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Insurance through super: everything you need to know

Did you know you can have insurance cover in your super fund?

If you have super, you might also have some automatic insurance cover.

It’s called insurance in super and is exactly what it sounds like – insurance cover available through your super account.

Insurance in super is designed to assist you and your family financially if you become unable to work due to illness or injury or in the event that something happens to you.

Why get insurance through your super?

Having insurance through your super can help protect you and your loved ones when you need financial security the most.

Insurance in super can also be tax effective and convenient. This is because the cost of your insurance cover, also known as premiums, are deducted from your super account – which means your take home income won’t be impacted.

When you have insurance in super, the premiums are paid from your super balance. This means you don’t have to pay premiums from your own pocket. However, your employer may, or you can make contributions to assist in funding the premiums. It is important however to check how much you’re paying in insurance administration fees and be aware that having insurance in super will reduce your super balance.

Types of insurance cover

Death insurance cover

 

 Total & Permanent Disablement insurance cover Income Protection insurance cover
If you die or you’re diagnosed as likely to die within 24 months due to a terminal illness – you’ll be able to financially assist your loved ones through a lump sum benefit. If you become totally and permanently disabled, Total and Permanent Disablement (TPD) cover can help ease financial pressures by paying you a lump sum benefit amount. If you’re unable to work due to illness or injury, Income Protection cover can provide you with ongoing income and financial support by paying you a regular income.

 

Find the right insurance cover for you

The right level of cover for you depends on your personal circumstances, lifestyle and future needs.

When you look at insurance cover and how much you need there are several things to consider, including:

  • Day to day living expenses that your salary covers.
  • Any debts – mortgages, credit cards, personal loans.
  • How much income you (and your family) need to live comfortably.
  • Future costs such as medical care, education for your children or yourself, and the costs associated with anyone you support financially.

 

 

How much does insurance cost through super?

The cost of your insurance cover may depend on your age, gender, occupation, medical history, health factors, lifestyle, income and employment arrangements.

Things to consider with insurance through super

It’s important to know that your retirement savings are reduced by the cost of your insurance premiums. That’s because premiums are deducted from your super balance to pay for your insurance cover.

You need to check what other insurance cover you may have. If you have more than one super account, you may be paying premiums for multiple insurance covers you may not need. This will reduce your retirement savings, and you may not be able to claim on multiple covers. You can search for any other super account you may hold online using MyGov. You may also hold insurance cover outside of your super account.

The type and amount of insurance cover that’s right for you depends on your personal, family and financial circumstances – as well as your income and lifestyle. As an example, an expanding family or a reduction in personal debt may impact your choice of the type and amount of cover you have.

A financial adviser can help you decide the insurance cover that’s right for you and way to pay for your premiums in super.

Keep an eye on your insurance cover

You should be aware that your insurance could be cancelled if your account hasn’t received contributions for at least 16 months, unless you have elected to keep it.

If you want your insurance cover to continue in an existing super account which hasn’t received any recent contributions, you need to contact your fund and opt in to retain any insurance in your account or make a contribution to your account.

 

Source: MLC

 

Hardik Gupta

Senior Paraplanner

Education: Master of Business Administration (Finance & marketing) & Bachelor of technology (B.tech)

Hardik is a financial professional with an MBA in Finance and extensive expertise in financial planning. As a Senior Paraplanner, he brings a wealth of knowledge and a deep commitment to helping clients achieve their financial goals.

With significant experience in the financial industry, Hardik excels in creating detailed financial plans, performing comprehensive financial analyses, and supporting financial advisors with client portfolio management. His strong background in finance provides him with a robust understanding of market dynamics, investment strategies, and risk management, enabling him to deliver tailored solutions that align with each client’s unique needs.

In his free time, Hardik enjoys spending quality time with his family, biking, playing snooker, and exploring new culinary delights through cooking.

Mayank Manta

Team Leader

Master’s of Commerce & Bachelor of Commerce

Mayank has 8 years experience in the Financial Services industry, with extensive understanding and in-depth knowledge of Financial Planning.

Mayank enjoys systems and numbers, ensuring that every step that needs to be followed gets done and every step that is unnecessary be removed from the process. Being an open, honest and naturally empathetic person, Mayank goes out of his way to ensure that clients, family and friends are happy and content. In his free time, Mayank enjoys spending quality time with my family, creating lasting memories with the people who matter most to him.

Another activity he enjoys is travelling – exploring new places and experiencing different cultures is something that excites him.

Jack Wyer.

Financial Adviser

Bachelor of Business – Major, Financial Planning

Jack Wyer is a Financial Planning Graduate who has recently commenced his Professional Year with Verity Wealth Solutions. With a Bachelor’s Degree in Business, Majoring in Financial Planning, Jack has demonstrated high achievement, receiving merit awards in both 2021 and 2022. Jack’s passion for helping others and his desire to see others succeed financially have been the driving forces behind his chosen career pathway.

Driven by his passion for financial well-being and his innate ability to connect with others, Jack is dedicated on making an impact on the lives of others. Through his expertise, empathy, and commitment, he strives to empower people to achieve their financial goals.

Alongside his financial planning endeavours, Jack finds joy in spending quality time with friends and family and wants to slowly visit new countries along the way. Jack is also an avid Soccer player, actively playing for a local team. When it comes to supporting a team, Jack goes for Tottenham in the English Premier League.

Jack Wyer’s Adviser Profile