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Buying Your Insurance within Super

By: Alan Preston   •   23 October, 2014

insurance within SuperYour superannuation provides insurance for life that is way cheaper than the insurances which are being missold by a few shonky practitioners in the traditional insurance world. The Australian Securities and Investment Commission has released a report that says more than a few insurances policies being offered today are below standard and suits only the purpose of the financial advisors, not the clients.

Insurance within Super

You can cut down the risk of being duped if you get yourself insurance within Super. Unless the circumstance is unusual, you get it nearly hassle-free. Oftentimes, you don’t even have to undergo a medical examination. It is enough to furnish your medical history and there you go!

The reason why it comes cheaper than the traditional insurances is because the Super funds buy insurance at wholesale prices and they come without the burden of “commission payable”.

Benefits of buying insurance within Super

If you are in the habit of forgetting your payments, insurance within Super can be a great help. After all, premiums are debited directly from the Super. Even from the point of view of tax, it is a great aid. Whether you choose to pay the premium from salary sacrifice or the more conventional method of employer contribution, the premium fetches a tax rebate.

A few possible disadvantages

Yes, there are a few things with insurance within Super that can rock your Super boat, too. The premiums you pay can impact your fund’s health; by lessening the amount of money you can invest in the fund. You will also need to talk to an expert and ensure that you are adequately covered. For instance, Trauma insurance is not usually covered in Super-embedded insurance. In fact, you have to be ‘immeasurably’ disabled to get Total and Permanent Disability Coverage when you buy insurance through Super. To reiterate, expert advice is a prerequisite.

What has your experience in regards to “buying within Super” been like?

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Should You Have Life Insurance In Your Super?
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Why You Should Buy Insurance Using Super Fund
Super Insurance Must Observe SIS Regulation
Super Insurance Must Observe SIS Regulation
Insurance within Super Must Comply with SIS Regulations
Insurance within Super Must Comply with SIS Regulations

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