Are you really covered?

02-Apr-2015

We don’t plan to have an accident or illness – but it is important to plan protection against the unexpected. And your super fund can help.

Some facts

The ‘unexpected’ is a lot more common than we might think.

The number of new cancer cases in Australia more than doubled between 1982 and 2010 to 116,580, with cancer estimated to be the leading cause of burden of disease1, 2.

Injuries requiring hospitalisation in Australia rose from about 327,000 in 1999 to 438,000 in 2011, the main causes in 2011 being falls and transport accidents4.

Twenty five per cent of Australians will be disabled for more than three months during their working life3.

High levels of debt and relatively low savings levels mean most are unprepared for the unexpected. While many employees have some form of life insurance through their super fund, a 2008 survey found one in two industry super fund members were underinsured by $100,000 or more5.

Taking adequate cover

Too many Australians risk losing their lifestyle and assets if the unexpected were to happen, when they could secure peace of mind with the right insurance.

Having enough life insurance helps provide financial security and can ease the stress of medical and rehabilitation costs, living expenses, the mortgage and cost of raising children.

The level of insurance cover automatically provided to super fund members is unlikely to be exactly what you and your family need. But it can be quite easy to increase the cover through your super fund.

Check what cover you currently have and use the insurance calculator at www.vissf.com.au/insurance-calculator to work out the cover you need. Then you can apply for the difference.

While types of cover and conditions vary, for VISSF members, death and TPD insurance pays a lump sum if they die or become totally and permanently disabled.

Disablement income insurance available to many VISSF members is paid monthly in arrears after 90 days if, as a result of accident or sickness, they are unable to perform at least one of the duties of their occupation, they are not working and are under medical care. Members can choose a benefit period of two years, five years or until their 65th birthday.

Affordable peace of mind

Taking insurance through your super fund can have several benefits, including lower premiums due to group rates and possible automatic underwriting. It also means the premiums are paid from your super account rather than your take-home pay, easing pressure on your household budget.

Premiums can be a lot more affordable than you may think. Take Janine for example, a 40 year old VISSF member. The weekly cost of an additional $300,000 of death and TPD cover would be around the same as a cup of coffee, at around $3.25.

For disablement income cover of $68,000 a year for a five year benefit period, she’d be looking at paying around just $4.60 a week.

Considering the peace of mind and security for you and your loved ones, topping up life insurance through super can offer good value for money.

 

 

All information contained in this article is general information only and is considered to be reliable however is not guaranteed. This article is issued by the Trustee of The Victorian Independent Schools Superannuation Fund (ABN 37 024 873 660, RSE Registration number R1000436, MySuper Authorisation 37024873660599) VIS Nominees Pty Ltd (ABN 11 006 586 367 AFS Licence number 235097, RSE Licence number L0000321). The information provided in this article is general information only and does not take into account your personal financial situation or needs. You should consider obtaining advice that is tailored to suit your personal circumstances.

  1. www.aihw.gov.au/acim-books
  2. Australian Institute of Health and Welfare & Australasian Association of Cancer Registries 2012. Canberra: AIHW
  3. www.tal.com.au/About-TAL/Facts-of-Life
  4. www.aihw.gov.au/publication-detail/?id=60129544399&tab=2
  5. Australian Institute of Superannuation Trustees & Industry Funds Forum, AIST media release, 3 June 2008 cited at lifewise.org.au
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