Life insurance cover through Superannuation
Many people think they are covered by life insurance within their superannuation policy but most Income Protection policies inside super provide for only 2 years' worth of cover.This could be a problem if, say, at 35 years of age you could no longer work because of a serious accident or illness. The cover inside your super policy would provide income until you reach 37. What happens then? It's a long way from there to retirement age with no income support. A possible solution may be to continue with your current Income Protection policy inside super – it is cheap because of the group cover – but supplement this with a policy outside super. Because super covers you for the first two years, specify a waiting period pf two years with your additional policy outside super. This substantially reduces your premiums and, more importantly, gives adequate cover for you and your family. Naturally, before embarking on this course of action, contact your super fund to find out the exact timeframe they will pay you income protection in the event of a claim. Life Insurance ... |
Australia | New Zealand
