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Know the smart questions to ask when choosing personal insurance.
When choosing life insurance, it can be important to compare details such as costs, what is and isn’t covered, and any waiting periods.
Knowing the questions to ask may help identify the personal insurance that suits a person’s unique circumstances.
If you are considering buying, renewing or switching insurance from 2020, check if the policy will cover you for claims associated with pandemics, such as COVID-19.
Some types of personal insurance include:
ASIC’s MoneySmart website1 says most super funds offer life insurance, with eligible members typically given default death cover, TPD and income protection cover automatically.
ASIC says there are benefits to getting life insurance through super. These include it often being cheaper, it is easy to manage, and there is usually the option to choose the amount to be covered for.
However, TPD insurance cover in super usually ends at age 65 and life cover usually ends at age 70. This is contrast to insurance outside of super where cover generally continues as long as you pay the premiums.
Also, people changing super funds, stopping contributions, or who have a super account that becomes inactive, may find their cover may end.
If you're a new super fund member aged under 25 or have an account balance less than $6,000, insurance will not be provided unless you:
If you are a QSuper member and your account balance is less than $6,000 or you are aged under 25, log-in to Member Online to review your insurance cover and consider whether you require insurance.
Life insurance needs should reflect personal circumstances, which may include whether a person is single, has a partner or a family.
Needs may be calculated by how much money would be lost if something happened and you lost your earning power. This may include savings, paid leave, shares, or superannuation. These amounts may be taken into account in determining how much you would then need in insurance.
Use our insurance needs calculator to help work out how much insurance you may need.
Key features, fees, commissions, benefits, risks and the complaints handling procedure for any policy are detailed in the product disclosure statement.
When checking what a policy covers, you may specifically want to ask:
The Australian Prudential Regulation Authority (APRA) publishes Life Insurance Claims and Disputes Statistics2 that aims to make it easier to compare life insurers’ performance in handling claims and disputes.
The data is used in MoneySmart’s life insurance claims comparison tools to compare life insurers according to:
Find out more about QSuper Insurance and log in to Member Online to review the insurance cover you hold.
1. ASIC, MoneySmart, Insurance through super, accessed 11 September 2020, at https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super
2. Australian Prudential Regulation Authority, 21 April 2020, Life insurance claims and disputes statistics, accessed 11 September 2020 at www.apra.gov.au
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