It is just so important to know all there is to know about the investment options of your Super fund. Of course, equally important is to understand what contributions you should ideally make to them to ease out investments and seek a decent retirement nest egg. There is a consensus that people also seek information on the right degree of insurance they should buy within their Super fund.
Insurance within Super
You can indemnify yourself against death, debility, and loss of income through your insurance within Super and in no small way at that. Let’s figure out why buying it within your Super is a good idea.
Less health scrutiny
With insurance within Super, you do not have to go through health scrutiny like you may have to if you buy insurance traditionally. Unless the cover you apply for is all-encompassing and involves lots of endorsements, you may only have to fill a personal health form to get the best of cover within your Super.
Premiums are salary sacrificed in a way
If you buy insurance within Super, the premiums are deducted from the fund account itself. If you have a salary sacrifice arrangement going, it would imply that your premiums are also “salary sacrificed”.
Tax deduction benefits
In the event of being self-employed or drawing in deficit of 10% as an employee (to another employer), you are entitled to a tax deduction on your Super. Naturally, insurance being a part of your Super, also receives tax deduction benefits.
Availing group discounts
And lest you miss out on this, most of the Super funds have access to group discounts which are available to any person or entity buying in bulk. So the price you need to pay when you buy insurance using Super fund may be a more modest one than when you buy conventionally.
