Many families are not prepared for the unforeseen times. One in every five Australian parents is unable to work due to illness, injury or any kind of disability causing financial stress and no financial peace of mind.
Australians who are currently struggling to afford to fit life insurance into their budget can benefit from starting a new policy or moving their existing cover into superannuation. This often overlooked trick can help consumers to save significantly on their life insurance costs. It can be a very cost effective move and also because super funds buy life insurance policies in bulk and can pass on the savings to their members.
Life insurance premiums are taken from the superannuation balance, meaning that cover is affordable even to those on a tight household budget. With premiums automatically being deducted from the fund balance, consumers do not have to worry about paying premiums on time. There can also be a tax advantage as premiums may not be paid from post-tax income.
Consumers can usually get death cover, total and permanent disability cover and Income protection insurance, but critical illness/Trauma insurance is not available through superannuation.
For consumers who are on a strict budget making a move to superannuation is ideal that would otherwise not be affordable with the life insurance cover. This enables them to protect their family’s financial future if the policyholder were to die or be unable to work due to illness or injury.
Experts estimate that consumers can make big savings by moving their life insurance into superannuation, and thousands of Australians are already taking advantage of the opportunity.
This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs.