Insurance
Insurance Through Super
Insurance through super
Life doesn’t always go as planned. An unexpected illness, injury or loss of life can affect your financial security and the people who depend on you.
Insurance through superannuation may help protect you and your loved ones financially if you die, become permanently disabled or cannot work because of illness or injury.
At Meezan Wealth, we help Australian Muslims understand their financial options and make informed decisions about protecting their families and planning for the future.
Did you know you can get insurance through your super?
Many Australian super funds offer insurance cover to eligible members, with premiums generally deducted from their super balance rather than their take-home pay.
Depending on your fund and eligibility, insurance through super may provide a convenient way to access certain types of financial protection. However, the cover available, premiums, eligibility requirements and policy conditions vary between funds.
Understanding your options can help you make informed decisions about protecting your family while considering the impact of insurance costs on your retirement savings.
Insurance
What are my insurance options in super?
Life Insurance (Death Cover)
Life insurance can provide a lump-sum payment to your eligible beneficiaries if you die. Depending on the policy, a benefit may also be payable following a terminal illness diagnosis. This financial support may help your loved ones manage living expenses, repay debts and maintain financial stability.
Total and Permanent Disability (TPD) Cover
If a serious illness or injury leaves you permanently unable to work, TPD insurance may provide a lump-sum benefit, subject to the policy’s definition of disability and eligibility requirements. The benefit may help cover living expenses, medical and rehabilitation costs, and other financial commitments.
Income Protection Insurance
If illness or injury prevents you from working, income protection insurance may replace part of your income for a specified period, subject to policy conditions. These payments may help you manage everyday expenses while you recover.
We’re Here to Help!
Choosing insurance through super can feel complicated. Understanding the costs, benefits and policy conditions can help you make a more informed decision about protecting yourself and your family.
At Meezan Wealth, our aim is to help you understand your financial options and consider how insurance fits into your broader financial plans.
Understand the Benefits and Costs
Learn about the potential benefits of insurance, the premiums you may pay and how these costs could affect your retirement savings.
Review Your Financial Needs
Consider your income, family responsibilities, debts and existing insurance to help identify the level of financial protection you may need.
Make Informed Decisions
Understand the policy conditions, exclusions, waiting periods and eligibility requirements before deciding whether a particular insurance option is suitable for you.
Our team can help you explore the relevant considerations and understand the next steps available to you.
Why Insurance in Super Can Be Worth It
It’s not something most of us think about every day, but an unexpected illness, injury or loss of life can have a significant financial impact on you and your family.
If you could no longer earn your usual income because of illness or injury, how would you manage your household expenses? If your family depended on your income, would they have the financial support they needed?
Insurance through super may help provide financial protection when you need it most. Depending on your policy, it can help support your loved ones or provide benefits if illness or injury affects your ability to work.
Reviewing your insurance can help you understand what protection you have and whether it suits your financial responsibilities.
Why Choose Insurance Through Super?
Insurance through super may offer a convenient way to access certain types of cover, with premiums generally deducted from your super balance rather than your take-home pay.
Convenient Premium Payments
Premiums are generally deducted from your super balance, so you may not need to make separate payments from your take-home pay.
Potentially Competitive Costs
Some super funds may offer competitive premiums through group insurance arrangements. However, costs vary depending on your age, occupation, level of cover and policy terms.
Financial Protection for Your Family
Depending on your cover, insurance may provide a lump-sum payment or income support following an eligible claim, helping you or your loved ones manage financial commitments.
Important Things to Consider
Insurance premiums reduce your retirement savings, and default cover may not meet everyone’s needs. Eligibility rules, exclusions, waiting periods and other policy conditions can also apply.
Before choosing cover, review the benefits, costs and terms to understand whether the insurance is appropriate for your circumstances.
What Should You Consider Before Choosing Insurance Through Super?
Choosing insurance is an important financial decision. Before selecting or changing your cover, consider your financial circumstances, existing protection and long-term retirement goals.
Assess Your Insurance Needs
Consider your income, family responsibilities, debts and regular expenses. These factors can help you understand the level of financial protection that may be appropriate for you.
Review Your Existing Cover
Check whether you already have insurance through your super fund, another super account or a separate insurance policy. Understanding your existing arrangements can help you identify potential gaps or overlapping cover.
Understand the Costs
Insurance premiums deducted from your super balance reduce the money available for retirement. Compare the premiums with the benefits provided and consider how the costs may affect your long-term savings.
Check Policy Conditions
Review the eligibility requirements, exclusions, waiting periods, benefit limits and circumstances in which your cover may change or end. These details can affect whether a claim is payable.
Review Your Cover as Life Changes
Marriage, having children, buying a home, changing jobs and approaching retirement can affect your insurance needs. Reviewing your cover when your circumstances change can help you assess whether it remains suitable.
Make an Informed Decision
Understanding your options, costs and policy conditions can help you make a more informed decision about protecting yourself and your family.
The Benefits
Convenient Premium Payments
Premiums are generally deducted from your super balance rather than your take-home pay.
Financial Protection
Eligible cover may help provide financial support to you or your loved ones when covered events occur.
Support for Your Family
Life cover may help your beneficiaries manage living expenses and other financial commitments.
Options to Suit Your Needs
Available cover and eligibility depend on the fund and policy. Review the terms to understand your options.
At Meezan Wealth, We’re Committed To
Flexible Insurance Options
Helping you understand available insurance options and consider cover that aligns with your needs and circumstances.
Clear Information About Costs
Helping you understand insurance premiums, policy conditions and how premiums may affect your super balance over time.
Understanding Your Cover
Helping you understand the terms, eligibility requirements and conditions that determine when insurance benefits may be payable.
Guidance Through the Process
Helping you understand the steps involved in the insurance process, including where to find information about making a claim.
How to Review Your Insurance Cover
Your insurance needs can change as your life and financial circumstances evolve. Reviewing your existing cover can help you understand what protection you have, what it costs and whether it continues to meet your needs.
01
Check Your Current Cover
Log in to your super account, review your latest annual statement or contact your super fund to identify the types of insurance you hold and the amount of cover available.
02
Understand Your Premiums
Check how much you pay for your insurance and whether premiums may change over time. Premiums deducted from your super balance reduce the money available for your retirement.
03
Read Your Policy Documents
Review your Product Disclosure Statement (PDS) to understand the benefits, eligibility requirements, exclusions, waiting periods and conditions that apply to your cover.
04
Check for Multiple Policies
If you have more than one super account or separate insurance policies, check whether you are paying premiums for overlapping cover. Consider whether each policy meets a specific financial need before making changes.
05
Review Your Cover Before Changing Super Funds
Before transferring or closing a super account, check what will happen to your existing insurance. Your current cover may not be available on the same terms through another fund, and replacement cover may require a new application or assessment.
06
Reassess Your Needs When Life Changes
Events such as getting married, having children, buying a home, changing jobs or approaching retirement may affect the amount or type of insurance you need. Review your cover when your circumstances change.
Take the Next Step
Regularly reviewing your insurance can help you make informed decisions about financial protection and retirement savings. If you are unsure about your existing cover, contact your super fund or consider speaking with a suitably qualified financial adviser.
Who Receives Your Super and Life Insurance Benefits?
Planning for your family’s financial future involves more than choosing insurance. It is also important to understand who may receive your superannuation savings and any life insurance benefits if you pass away.
Understand Your Beneficiary Options
You may be able to nominate an eligible beneficiary to receive your super death benefit. Depending on the super fund’s rules and applicable superannuation law, you may also be able to nominate your legal personal representative so the benefit can be paid to your estate.
The people who can receive a benefit, and the way it is paid, depend on the relevant rules and circumstances.
Keep Your Nomination Up to Date
Your family circumstances can change over time. Marriage, separation, having children or other significant life events may be reasons to review your beneficiary nomination.
Check your super fund’s requirements to understand whether your nomination is valid, how long it remains effective and when it needs to be renewed.
Understand How Benefits Are Paid
The super fund trustee generally determines who receives a super death benefit in accordance with superannuation law, the fund’s rules and any valid nomination. A benefit may include your super account balance and any eligible life insurance benefit held through the fund.
The payment process and eligibility requirements can vary, so it is important to understand the arrangements that apply to your account.
Plan Ahead With Greater Clarity
Understanding beneficiary nominations can help you make more informed decisions about your family’s financial arrangements. Review your super fund’s guidance and consider professional advice if you are unsure which nomination may be appropriate for your circumstances.
Frequently Asked Questions About Insurance Through Super
What is insurance through super?
Insurance through super is insurance held through a superannuation account. Depending on the fund and policy, it may include life insurance, total and permanent disability (TPD) cover and income protection insurance.
What types of insurance may be available through super?
The three common types are life insurance, TPD insurance and income protection insurance. Each provides different benefits, and the cover available depends on the fund, policy terms and your eligibility.
Does everyone automatically receive insurance through super?
No. Eligibility for automatic cover depends on factors such as your age, super balance, employment circumstances and fund rules. Some members may need to contact their fund to request cover.
How are insurance premiums paid through super?
Premiums are generally deducted from your super balance. While this can make payments convenient, it also reduces the amount available for your retirement.
Can my insurance through super stop?
Yes. Cover may end or change because of factors such as account inactivity, a low balance, age limits, changes to your super arrangements or specific policy conditions. Check with your fund to understand the rules that apply to your cover.
How can I check what insurance I have?
Log in to your super account, review your latest annual statement or contact your super fund. Your Product Disclosure Statement (PDS) explains the cover, premiums, exclusions and relevant conditions.
Can I have insurance through more than one super fund?
You may have insurance attached to multiple super accounts. However, you could pay premiums on more than one policy, and claiming benefits under multiple policies depends on their terms. Review your arrangements before cancelling or consolidating any accounts.
Who receives my super and life insurance benefits if I die?
Eligible beneficiaries or your legal personal representative may receive a super death benefit, which can include your super balance and eligible life insurance benefits. The outcome depends on applicable superannuation law, fund rules and any valid beneficiary nomination.
How do I make an insurance claim?
Contact the relevant super fund or insurer to understand the claims process and required documents. The process and assessment timeframe depend on the type of claim and the applicable policy terms.
Is insurance through super right for me?
It depends on your financial responsibilities, existing cover, personal circumstances and retirement goals. Compare the benefits, premiums and policy conditions before deciding whether the cover meets your needs.