Managing insurance within super
If you were to do any research on insurance, you would soon see that having ‘adequate’ insurance cover is a common topic. There are also different types of insurance available, and ways to apply for cover.
Some people may not even be aware that they probably have some amount of Death and Total & Permanent Disablement (TPD) insurance cover by default, within their superannuation account.
This type of cover means that if you pass away or become permanently disabled and unable to work again, you or your beneficiaries can receive a lump sum insurance benefit, to help out financially during that time of need.
The question of whether that insurance cover is exactly the right cover for you, or provides ‘adequate’ cover for your circumstances, is something that needs proper attention. As always, it may help to get some financial advice from a qualified expert to help determine what cover is right for you.
What is just as important is to understand that insurance should not be a ‘set and forget’ arrangement – as your life and circumstances change, so will your insurance needs.
Dealing with any of these common life events should trigger a review of your insurance arrangements, to make sure they are still providing adequate cover for your current needs:
• Birth or adoption of a child
• Taking out or increasing loans
• Death of a spouse
• Becoming a carer of a family member
• Children starting school or higher education
• A significant salary increase
The simple message is that regardless of who your super is with or what your circumstances are, getting your insurance arrangements right and reviewing them regularly is important – and may provide just the right support when you need it most.
This article was prepared by the team at NSF Super, located in Charlestown. Call the team on 1800 025 241 or email firstname.lastname@example.org for more information on insurance options.
This article contains general information only and has been prepared without taking into account your financial objectives, situation or needs. It may, therefore, not be right for you. Before you make any investment decision, we suggest you consult the relevant Product Disclosure Statement and/or seek licensed financial advice.