Is It Right for You?
Superannuation-linked life insurance combines coverage within and outside your superannuation fund. This dual structure provides comprehensive protection by linking internal superannuation benefits with external insurance features.
Why Choose Life Insurance Through Super?
Integrating life insurance with superannuation is often a strategic choice, influenced by employer arrangements or cash flow management needs. It’s a smart way to ensure financial security for you and your dependents in case of health issues, accidents, or unforeseen events.
However, life insurance within superannuation may not offer all the benefits of a standalone policy. The insurance market offers ‘linked’ policies, combining basic coverage through superannuation with additional external features. Typically, the super fund covers most premiums, maximizing coverage while keeping it cost-effective.
Life Insurance Options Available in Superannuation
Not all life insurance types fit within the superannuation framework due to the Superannuation Industry (Supervision) Act’s regulations. These rules ensure superannuation serves primarily as a retirement benefit. Currently, Term Life Insurance, Total and Permanent Disability (TPD) Insurance, and Income Protection Insurance (often called Salary Continuance) are allowed within super funds.
The Importance of Life Insurance
With Australians facing an underinsurance issue, life insurance is more relevant than ever. Life insurance provides a crucial safety net, offering financial protection when it’s most needed. Despite perceived high premium costs, especially for healthy individuals, using superannuation for insurance can make this essential coverage more affordable.
Expert Advice on Superannuation and Insurance
At Continuum Financial Planners Pty Ltd, we recommend a proactive approach to your insurance needs. This includes regular reviews of your coverage level, policy type, and structure. Whether managing multiple super accounts with insurance or exploring new options, our team provides expert advice tailored to your situation.
Ready to Review Your Insurance Strategy?
Our advisers are committed to understanding your needs and delivering personalised solutions to ensure your financial security now and in the future.
If you’re exploring the idea of superannuation-linked life insurance or seeking to optimise your current coverage:
- contact us at (07-3421 3456) or
- at your convenience use our Book A Meeting facility to arrange an appointment.
(This article was first published in February 2013. It has occasionally been refreshed/ updated, most recently in September 2024.)
