Super insurance is part of your super fund and provides financial protection in case of unexpected life events like illness, injury or death. In NSW and across Australia, it’s important to understand insurance. Insurance will help you make informed decisions to protect you and your loved ones future.
What is Super Insurance: Why You Need It
Super insurance provides you with peace of mind by including life, total and permanent disability (TPD) and income protection insurance in your super fund. This simplifies your finances and provides tax-effective premium payments. Here’s why you shouldn’t overlook super insurance:
- Financial Security: Super insurance will ensure you and your family are financially protected in case of unexpected events.
- Convenience: Premiums are deducted from your super balance, thus, helping with personal cash flow.
- Tax Benefits: Premiums paid through your super fund are generally tax deductible at the fund level which can reduce the cost of insurance.
Super Insurance in NSW
When looking at super insurance in NSW you need to consider the following key features:
- Level of Cover: How much cover do you need in your super account based on your current lifestyle, income and family responsibilities?
- Policy Terms: What are the terms and conditions, including exclusions and limitations?
- Cost: Super insurance premiums vary depending on age, health and level of cover.
How to Choose the Right Super?
Choosing the right super insurance policy is a big decision that can impact your financial security and peace of mind. Super funds in Australia have bundled insurance options so it’s important to review what each fund offers. Here’s a step-by-step guide to help you make an informed decision:
Step 1: Compare
- Cover: What type of insurance is included, life, TPD (Total and Permanent Disability), income protection? Does the cover also meet your personal and family needs?
- Premiums: Premiums can vary significantly between funds. Are the premiums affordable and competitive for the benefits?
- Terms and Conditions: Review the specific terms of the insurance. Check out the exclusions, waiting periods and conditions for claims. Knowing these will help you avoid surprises when you make a claim.
Step 2: Fund Performance
The performance of the fund is an important consideration when choosing your insurance as it can impact your premiums and overall benefits. Here’s what to look at:
- Historical Performance: Look at the long-term performance of the fund. Good performance over time is an indicator of a fund’s stability and management.
- Financial Health of the Fund: Strong financial health means the fund is more likely to keep its insurance offerings and meet its liabilities.
- Member Services: Consider the quality of customer service and member support. Efficient handling of enquiries and claims is key.
Step 3: Seek Professional Help
Choosing the right insurance policy can be complicated with many variables that need to be tailored to your individual circumstances. Consulting with a financial adviser can be very helpful:
- Personalised Advice: A financial adviser will provide advice based on an assessment of your financial situation, lifestyle and long-term goals.
- Product Knowledge: Advisers also know the ins and outs of the different super insurance products and can help you navigate the fine print.
- Regulatory Compliance and Updates: Additionally, professional advisers are up to date with the latest regulations and changes in super and insurance laws which can affect your cover and benefits.
Super Insurance and Legislation in NSW
There are recent changes in Australian legislation that have affected how super insurance is managed within super funds. This is the case, especially for inactive accounts and young eligible members. These changes also prevent insurance premiums from eroding super balances. Make sure you stay up to date with these changes so your insurance isn’t cancelled or changed without you knowing.
Super Insurance Myths
- “It’s too expensive”: Many don’t know how affordable super insurance can be when managed properly.
- “I’m already covered”: Assumptions about cover can lead to nasty surprises when you least expect it.
- “It’s too complicated”: While the details can be complex, professional advice can simplify it.
Get the Most Out of Your Super Insurance
To get the most out of your super try these practical tips:
- Firstly, review Your Cover Regularly: Your cover may change over time so review it regularly to make sure it’s still right for you.
- Secondly, update Your Fund of Life Changes: Keep your super fund updated of significant life changes such as marriage, children or a new mortgage.
- Thirdly, know Your Policy: Being familiar with your policy ensures you know what you’re entitled to and how to claim it.
What to Do Next: Super Insurance for Your Financial Future
Taking control of your super insurance is a proactive step to securing your financial future. Here’s what to do now:
Review Your Current Insurance Cover: Assess your current situation and if your super is sufficient.
Seek Professional Help: Consider talking to a financial adviser so they can provide tailored advice to you. They can also help you use an insurance calculator to determine insurance costs for your insurance.
Change Your Super Fund: If needed, switch to a super fund that has better insurance options or lower fees.
Advice on other types of insurances: Experts and legal professionals can help with:
- Life insurance that provides a lump sum payment or lump sum benefit to you or your loved ones
- Permanent disablement cover (TPD insurance cover)
- Income protection insurance cover or income protection cover
- Retirement savings
- Death cover
Get in Touch With Us
If you’re in NSW and need help with super insurance or other related legal issues, contact JB Solicitors. Our superannuation lawyers can assist you get affordable insurance cover.
Call now to make sure you know how much insurance you need.
