Too Much Cover?
Published on March 7, 2018
In Australia, Life Insurance and TPD Insurance is typically included in your super – by default. Generally this is a
good thing, but if you’re one of the 4 in every 10 Australians who have more than one super fund, it may not be a
good thing at all.
Why? Because, unless you’ve opted out of insurance with your other funds, you’re essentially duplicating your cover
AND your premiums. As you can see below, this can have a massive negative impact on your retirement savings.
Unfortunately, this is not always easily fixed by simply consolidating your super into one fund. You need you need to
be sure that you’re making a good choice. And that can be more complicated than most people think. For example,
what if you choose to consolidate with a more recent fund and then you’re no longer covered for a pre-existing
condition? Here are three other aspects to consider as well:
There’s simply too much at stake to take the DIY option or just assume you’re properly covered by default
insurance in super. The smart thing to do is get professional advice and make sure you, and the people who
depend on you, are properly covered – by an insurer with a track record for swift payment of claims.
*Source: Choice, https://www.choice.com.au/money/insurance/life/articles/lack-of-clear-information-costing-consumers-on-life-insurance-091216
Supersolve Financial Services is a Corporate Authorised Representative of Financial Services Partners Pty Ltd ABN 15 089 512 587 AFSL 237590. The information (including taxation) provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.