Life Insurance for
Empty Nesters

What is Life Insurance through superannuation?

This means paying for Life Insurance with the money that sits in your super fund. You’ll generally get the default level of cover your super fund offers. You can choose this option through your employer or when you set up your super fund. As long as your employer, or you, contributes super to your account regularly, you will have some level of Life Insurance cover.

What am I covered for under Life Insurance through superannuation?

Life Insurance through a super fund usually includes one or more of three different kinds of cover:

1. Death cover, which pays a lump sum or an income stream benefit amount to your beneficiaries if you die.
2. Total and permanent disability cover, which pays you a benefit amount if you’re seriously disabled and not likely to work again because of this.
3. Income protection to cover loss of income over a certain period if you can't work because of a temporary illness or injury.

How do I work out how much Life Insurance I need?

To get an idea of how much insurance cover you need, start by tallying up the total cost of the things you pay for that your loved ones would still need if you’re no longer earning an income.

This might be things like your bills, debts, mortgage, and personal loans. The total sum of these gives you an idea of the amount of cover your loved ones would need to continue to meet your financial responsibilities in your absence.

Try our life insurance calculator online now.

What’s the difference between my super Life Insurance policy and a policy through an insurer?

Life Insurance through an insurance provider is different in a few ways. Firstly, there can be more flexibility around the kind and level of cover available, meaning the amount you pay can be adjusted to increase or decrease the level of cover. Also, benefit amount payable to you or your family are usually delivered quicker by an insurance provider because they are passed directly to the beneficiaries rather than to a super funds trustee.

Is Life Insurance through super enough?

When thinking about Life Insurance, consider what you need cover for, the premium you can afford, and the benefit or limits you and your loved ones require to keep the lifestyle that you want. For example, if someone has an underlying medical condition    they might opt for Life Insurance through an insurance company to make sure they’re covered in particular circumstances. On the other hand, another person might only need a benefit amount if they’re injured at work and can no longer do that job.

Try our life insurance calculator online now.