Published 03 Jan 2019
Before you start shopping for life insurance plans, find out what kind of cover you may already have through your superannuation fund. Learn how to check your current coverage first and foremost, then you'll be better prepared to compare your options.
Below is your guide to figuring out what life insurance you have through your super.
How to check your super coverage
Each super fund has a product disclosure statement (PDS) that provides the information you need about insurance coverage. The PDS will show you who the insurer is and the type of coverage you have or could have.
It would also help to get in contact with someone that runs your super fund for this information if you need assistance understanding it. ASIC's MoneySmart says that your super statement will also have this information and more, including:
By speaking with someone when you call your super fund provider, you'll also be able to ask how they classify you - as in, what 'risk characteristics' they may have on file for you that could affect your premiums.
Types of life insurance
There are three types of life insurance that supers provide, according to MoneySmart. These are:
Death cover and TPD cover are generally provided by super funds, and cover can be changed or cancelled depending on your needs. Other benefits of cover through your super are that the premiums can sometimes be cheaper and it's one less payment to keep track of each month since it is automatically deducted from your super.
Once you understand the cover you have and how much you're paying, you can then approach life insurance shopping with a more well-rounded view of your needs and whether you'd save on a plan outside of your super.
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