Employer sponsored or standalone options
Many Australians now purchase life insurance through their super as there are many attractive benefits. Generally lower premiums, possible tax advantages and in some cases no medical assessment make insurance through super a straight-forward way of protecting your life.
However if you choose to buy insurance through super rather than as a standalone purchase it’s important to check exactly what you are getting.
Read the small print
It’s always a good idea to read the Product Disclosure Statement of any insurance product to make sure you fully understand what you are covered for, how much cover you have and any exceptions to making a claim.
Check with your adviser
When taking out insurance it’s a good idea to talk to your financial adviser about how much cover you really need. You should aim for a balance of being adequately insured. Whilst it’s important to avoid underinsurance, but overinsurance over insurance could mean you’re paying for something you just don’t need.
Consider combinations
Many people combine insurance through super and standalone products to make sure they are properly protected.
