Call us on 1300 794 893

Your Money

Life insurance and super

How important do you think the life insurance component is to the selection of a super fund? I’m switching my fund because of consistently poor performance but the life insurance is very good, while other funds I look at on a performance basis don’t have as good a cover.

There are a number of advantages from life insurance in super, which people switching funds, especially to a self-managed super fund, should think about.

These include:

  • The fund size could lead to cheaper premiums.
  • You can get a set amount of cover without medical examination in some funds.
  • It’s tax deductible and can reduce the cost of coverage.
  • Automatic deductions from a fund account ensures premiums are paid.
  • You can use salary sacrifice to pay the premiums and these are pre-tax dollars, which is worth remembering for self-managed super fund people.
  • Benefits paid to tax dependents are tax-free and there’s no maximum limit!

Some funds let you buy extra insurance, which can be good. Finally, always compare your insurance deal as some private life insurance deals are better but it’s often the other way around.

As you can see, it is not an open and shut case but the important message is not to ignore the importance and the value of life insurance inside your super fund.

For advice you can trust book a complimentary first appointment with Switzer Financial Services 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, January 29, 2010

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300