Personal cover through super

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4th July 2018

For certain people having insurance through your super makes a lot of sense as premiums are automatically deducted from your super balance. This can be very attractive for people who need personal cover but do not have the cash flow to pay for it. Or for those who do not want to worry about forgetting a payment and being left without cover.

The three most common types of insurance in superannuation are:

Income Protection – this is also known as Salary Continuance or Total but Temporary Disablement and is designed to provide you with an income for a limited period if you are unable to work due to illness or injury.

Total and Permanent Disablement (TPD) cover is designed to protect you if injury or illness leaves you permanently unable to work.

Life cover can provide help to those who depend on you for financial security in the event of your death. A Terminal Illness benefit allows you to access your Life cover earlier should you need it.

There is no right or wrong amount of cover and having something in place is better than nothing.