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The decision on whether to join the majority of Australians who hold insurance inside super comes down to unique personal circumstances.
More than 70% of Australians who have life insurance hold it through super.1
Everyone's insurance needs are different, so it's important to choose cover based on individual circumstances.
There are three main types of insurance available inside super. Most super funds offer life, total and permanent disability (TPD) and income protection insurance for their members.
Life insurance pays a lump sum to beneficiaries in the event of death or terminal illness to help to pay off existing debts, cover living expenses for dependents, or provide them financial support.
You may have life insurance cover included with your QSuper account if you are aged between 25 and 69 and are otherwise eligible.
QSuper insurance is designed to be flexible, so you can tailor your cover by choosing to apply for fixed cover, increasing or decreasing your level of cover, cancelling or permanently opting in to cover, or changing how much you pay to reflect your job.
It is important to let your fund know who your beneficiaries should be, so you can direct who you would like to receive your super and death benefit if the worst should happen.
If an illness or injury leaves you unable to work again, TPD cover allows you to cover out of pocket medical expenses, home or transport modifications, support your ongoing financial needs, and take care of your dependents.
With QSuper insurance, you can choose to tailor your cover by considering what these costs may be.
Income protection pays you a weekly benefit to replace most of your income if you are unable to work for a period of time due to serious illness or injury, so you may be able to cover everyday living expenses and maintain the lifestyle you’ve built for yourself and your family.
If you are a QSuper member, you may have income protection insurance included as part of your QSuper account depending on your age, employment arrangements, account balance, and how you joined QSuper (eligibility and conditions apply).
While income protection products typically only protect 75% of your income, QSuper offers up to 87.75%. If you get sick or injured, you can receive payments for up to two years, to give you time to recover and focus on your health (eligibility and conditions apply).
The Australian Government has made changes to insurance cover provided through superannuation. These changes aim to protect members under the age of 25 and members with low superannuation balances from having their retirement savings unnecessarily eroded by insurance premiums.
The reforms came into effect on 1 April 2020.
From 1 April 2020, unless you’re covered by the dangerous occupation exception, to automatically receive default cover in super (including life, TPD, or income protection cover) you will need to:
This is in addition to the other eligibility requirements which include that you must have received money into your Accumulation account within the past 13 months or have permanently opted in to cover.
Log into Member Online to see your current level of insurance cover. If you don’t have any cover, you can apply in Member Online. Our insurance needs calculator aims to help you find out how much insurance you may need.
1. Australia Securities and Investments Commission, MoneySmart, Insurance through super, accessed 11 September 2020 at https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super
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