RETIREMENT SAVINGS THROUGH SUPERANNUATION
Superannuation retirement savings are a valuable way of preparing for your future through a group or company insurance scheme. It's important to know as much as you can about life insurance through your super before you commit because superannuation life insurance cover comes with its advantages and disadvantages.
RETIREMENT SAVINGS THROUGH SUPERANNUATION

INSURANCE THROUGH YOUR SUPERANNUATION

Superannuation insurance offers life cover, just like regular life insurance but is more like a super system of insurance cover that frequently delivers better investment earnings. But it is more than just that. Most often, contributions to your super fund are in the form of a federal government co contribution, which allows you to build a tidy retirement nest egg.

Your insurer may run one or multiple super funds, and the larger the super fund, the better they are able to negotiate group discounts. But whatever the case, they will get you the best deals possible as they will negotiate group discounts to generate more significant superannuation savings. When you invest in super funds, it costs less and increases the final benefit payment on retirement.

Your super is a safety net for your dependents that helps prevent their severe financial hardship should something happen to you. You have to make a salary sacrifice to benefit from a super fund. Read on to find out more about insuring your life through a super fund.

We think it’s important to stay informed, so you can protect yourself in the best way possible. An alternative to purchasing life insurance through a retail life insurance provider is to buy this type of cover through your superannuation fund because it is often a cheaper insurance cover strategy.

Whether you have an industry super fund or a self-managed super fund, choosing a life insurance policy through your super offers a number of benefits and disadvantages. It’s important to know as much as you can about life insurance through your super before you commit.

Click below to find out more about insurance cover in the topics below.


FAQs

WHAT INSURANCES CAN YOU INCLUDE IN YOUR SUPERANNUATION ACCOUNT?

All of the insurances that you can quote using our comparison website are fundable through superannuation. The only types of policies that you cannot fund through your super account is trauma insurance.

CAN I ACCESS MY SUPER AT 55 AND STILL WORK?

Your preservation age differs depending on several factors such as when you were born, and whether or not you have retired or are still working, which is also a major factor in accessing your super. We strongly recommend speaking with a financial adviser before making any decision regarding withdrawals from your super account as there can be significant tax implications for early withdrawals.

HOW DOES WITHDRAWING SUPER AFFECT INSURANCE?

Insurance within super can be maintained as long as there is enough money is your super balance to fund the premium (provided the policy has not expired due to your age or other factors). If you do not have any money in your super and the insurance company is unable to request a premium payment, you have two options. Pay the premium directly yourself, or the policy will lapse due to non-payment.

IS IT NECESSARY TO READ THE RELEVANT PRODUCT DISCLOSURE STATEMENT?

Reading through the relevant product disclosure statement is as vital as discovering the applicable income tax rate on your super account and withdrawals at various points. Stay informed about legal documentation and paying tax on withdrawals to optimize your retirement savings

GETTING THE RIGHT POLICY FOR YOUR NEEDS
At Wealth Smart, we believe it's important you consider your life insurance or trauma insurance policy carefully to make sure you have the protection you want and need. If you're unsure whether a super fund life insurance policy is suitable for your circumstances, contact one of our Wealth Smart advisers today.
GETTING THE RIGHT POLICY FOR YOUR NEEDS
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