Call us on 1300 794 893

Your Money

Does my daughter need life insurance in her super?

| More

I have a daughter who has recently got a job working for a fast food mob and she has been forced into a super fund, which is OK by me but she has been given a life insurance component which eats into her super and I reckon is probably a little premature, given the fact she is age 20 and she has no debts or dependents.

Am I wrong in being anti-insurance? I would prefer her to get as much as possible into her super when she is young and see it roll over and roll over, so when she is older she will have the confidence that comes when you have some good super behind you.

You can ask for the super fund to take away the insurance option and I would agree that is very early for such coverage but if she had a terrible accident and she couldn’t work again it would prove to be a good option.

I agree that young women need to get as much money as possible into super early as they often get sidetracked by marriage and kids, and so getting money in early into super can give a woman more independence.

I reckon you’re a good dad to think about his daughter and maybe you could let her keep the cover but maybe give her a couple of hundred dollars a year which she can add to her super and pick up the co-contribution assistance from the government. The government will match up to $1000 and if your daughter earns $31,920 or less she could get the full $1000 but she could get something right up to $61,920!

For advice you can trust book a complimentary first appointment with Switzer Financial Planning today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, April 20, 2012

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer, Roger Montgomery, Paul Rickard and Charlie Aitken the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

Related articles

Super changes in the Budget

Segregation anxiety – how to split assets

Is your business prepared for MySuper come 1 January?

Is it time to fix now?

Can I access my super without retiring?

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300