5 minute read
Adjusting insurance through your super
If you’re like many Australians, when it comes to your health insurance, utilities, or even your mobile plan, you tend to leave them in the ‘set and forget’ pile or ‘too hard’ basket.
With life insurance, it’s probably no different. You may already have some form of cover through your super; however, the chances are you haven’t looked at the details too closely.
What is life insurance through super?
There are a few different types of life insurance including death, total and permanent disablement (TPD) and income protection (IP). Life insurance through super can offer financial support if you become sick or injured and unable to work, as well as helping to take care of your loved ones when you’re no longer around.
Depending on your super fund, your age, and your account balance, you may have been automatically provided with a level of death cover, total and permanent disablement (TPD) cover, and income protection (IP) when you joined.
But because life insurance through super is designed to provide cover for a large number of people, it’s not going to be tailored to your individual circumstances.
Changing your cover to help suit your needs
There are a number of options available if you think you need to change your cover to better suit your needs. You may be able to apply to your super fund for an increase or decrease to your level of cover.
If it wasn’t included when you joined, you may also be able to apply for IP cover. You can also choose to cancel your cover if you decide it’s not right for you.
If you choose to increase your cover or adjust other features, you may be asked to provide personal information about your health, lifestyle, and occupation. And, depending on the information you provide in your application you may also need to get a health check.
Depending on your individual circumstances, the introduction of the Protecting Your Super (PYS) and Putting Members’ Interests First (PMIF) legislation that impacts insurance within super may influence your cover.
Understanding these changes is important, especially if your super balance is low (below $6,000) and you’re under 25 years old, or your super account has been inactive for 16 months.
Personalising your cover
When deciding on the level of cover that’s right for you, there are a few factors to assess. Firstly, the number of children or dependents you have should be taken into consideration. It’s also important to understand what savings or debts you have.
Secondly, it’s vital to think about the financial impact on you and your family if your income stopped due to injury, illness, or if you were to pass away.
You can contact your fund at any time to understand what cover you have to help you decide whether it’s right for you.
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Things you should know
Bendigo Superannuation
Bendigo Superannuation Pty Ltd ABN 23 644 620 128 AFSL 534006 (Bendigo Super) is the trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension (products). Bendigo Super is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879 (Bank). Each of these companies receives remuneration on the issue of the products or services they provide, full details of which are contained in the relevant Product Disclosure Statement (PDS). Bendigo Super, the Bank and its related entities do not guarantee the repayment of capital invested, the payment of income or products’ investment performance. An investment in these products does not represent a deposit with, or liability of Bendigo Super, the Bank or its related entities. The Bank does not stand behind or guarantee the performance of Bendigo Super in its capacity as trustee and issuer of the products. Bendigo Super is not an authorised deposit-taking institution within the meaning of the Banking Act 1959.
Information on the website is subject to change without notice. Any advice in relation to superannuation is provided by Bendigo Super. The information contains general advice only and does not take into account your personal objectives, situation or needs. Before making an investment decision in relation to these products you should consider your situation and read the relevant PDS accessible through this site.
