Life Insurance

Insurance through your superannuation: Take the time to understand your cover

10 April 2018

While insurance may not be the most popular topic to discuss around the BBQ, it’s important to take the ‘gamble’ out of the things that really matter – like protecting your family in the event that you get sick or injured and are unable to work, pay the mortgage or your rent.

Did you know that most superannuation funds offer their members life insurance options within their superannuation fund? It’s worth understanding how this works when you’re making decisions about structuring your life insurance cover. The amount of cover you may be entitled to receive will depend upon various factors, including your age and the superannuation fund that you’re a member of.

Check what you’re covered for

If you’re reviewing your life insurance policy, a good place to start is to check what cover you may be entitled to receive through your superannuation fund, so that you can compare it against other insurance coverage options.

There are three types of insurance cover generally held within a superannuation fund, such as:

Life Insurance 

Typically life insurance (confusingly, sometimes this is also called death insurance) is paid to beneficiaries upon the death of the insured fund member. Generally, life insurance cover is available as long as it commences before the fund member turns 70.

Find out more about Suncorp’s Life Protect Insurance

Income Protection (IP)

An IP benefit is usually paid if the fund member suffers an accident or illness that results in the member being unable to work.

Find out more about Suncorp’s Income Protection Insurance.

Benefits of life insurance through superannuation

Though not an exhaustive list, these are some of the potential benefits of having life insurance through superannuation.

Cost-effective

It may be cost-effective because the fund is able to buy life insurance in bulk, meaning that fund members benefit from the economies of scale that this approach delivers.

Offers some level of cover

Fund members may be at least partly covered if they experience an accident or illness and are unable to work even if they do not have any other type of insurance outside of superannuation.

Premiums are automatically deducted

Generally, premiums are automatically deducted from your superannuation fund, which means you may not need to include life insurance premiums within your budget. Depending on your individual circumstances, the premiums are usually taken out of pre-tax contributions, which may mean that you pay a lower amount of tax in the long term. 1

Why you should regularly review your life insurance needs

Your personal circumstances tend to change as you move through different stages of your life and so it might be a good idea to regularly review your life insurance needs to ensure you have the right level of cover. For example, you might have different life insurance needs after you get married or divorced, have children, buy a new home or change jobs.

You can usually increase or decrease the level of your life insurance cover or even cancel your life insurance cover if you no longer need it. The important thing is to make sure the level of life insurance cover you have is right for you. Learn more about our life insurance products outside of super.

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Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, are issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies are not part of the Suncorp Group. TAL Life uses the Suncorp brand under license from the Suncorp Group. Redundancy Benefit provided on or before 31st March 2020 was issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 are issued by TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other. Redundancy Benefit policies and renewals offered from 1st April 2020 are issued by TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.

This information is general advice only and does not take into account your individual needs, objectives or financial situation, so before acting on it you should consider whether it is appropriate for you. Before you decide to buy or to continue to hold an insurance product, please read the Product Disclosure Statement (PDS). The PDS contains important information which will help you understand the product, including what's covered and what's not covered. The Target Market Determination (TMD) for the product is also available.

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