How to Tell if Your Super Comes With an Insurance Cover

If you’re like most people, you probably have a retirement nest egg building up in a superannuation account. But what you may not realise is that your super account may also come with insurance cover.

This insurance cover is designed to protect you and your family in the event of your death or disability. It can provide a valuable safety net should you ever need it.

So, how do you know if you have insurance cover in your super? Here’s a comprehensive guide to help you find out.

First, let’s take a look at what types of insurance cover are available through superannuation:

Types of Insurance Cover Offered Through Superannuation Accounts

Three main types of insurance cover are commonly offered through superannuation accounts:

1. Death Cover

Death cover (aka life cover) pays a lump sum to your beneficiaries in the event of your death. Financially dependent individuals, such as people with a spouse, children or elderly parents, ideally get death cover to insure their financial obligations as a safety net. If the life insured should pass away, your beneficiaries can use these policies to continue living the life you had planned.

2. Total and Permanent Disability (TPD) Cover 

Total and Permanent Disability cover pays a lump sum to you if you are permanently disabled. This type of cover is designed to help you cover the costs of therapy, rehabilitation, and any other expenses you may incur as a result of a disability.

3. Income Protection Cover 

Income protection cover pays you a monthly benefit if you are unable to work due to an injury or illness. This type of cover can help you cover your mortgage payments, bills, and other living expenses until you are back on your feet and back at work.

How to Know if Your Super Comes With an Insurance Cover

Most super funds offer some form of insurance cover, but the level of cover and the premiums can vary significantly depending on the insurer they use. It’s important to check with your super fund to see what cover is available and how much it will cost as this can greatly affect your final superannuation balance when you retire. Here are some ways you can find out if you have any of this cover in place:

1. Check Your Super Statement

Your super statement will show you what type of insurance cover you have in place (if any) and the associated premiums you have paid for that period.

2. Check Your Super Fund’s Website 

Most super funds have an online member portal where you can log in and view your account details. This is a good place to check what type of insurance cover you have in place.

3. Contact Your Super Fund

If you can’t find the information you’re looking for online, you can always contact your super fund directly and they will be able to tell you what type of cover you have in place.

4. Ask Your Financial Adviser

Finally, you can always contact your financial adviser – they will typically have all of this information recorded and can explain what you are covered for.

Get the Right Insurance for Your Needs with Newcastle Financial Planning Group

It is important to know if you have insurance cover in your superannuation so you can ensure that 1) you are adequately covered, 2) you are paying for quality insurance cover, and 3) in case you need to make a claim. There are a few ways to find out this information, including checking your policy documents or contacting your superannuation fund. If you are unsure, it is always best to speak to your financial adviser.

If you are looking for an expert insurance adviser in Newcastle to help you invest in a quality insurance plan or to check if you are still getting value for money with your existing policies, look no further than Newcastle Financial Planning Group. We are composed of experienced professionals who will help you achieve your financial goals. Call us or book online to secure your meeting today and learn how we can work together to achieve your financial freedom!