If you have a family, dependants or debt, life insurance is essential. If you die and your life is insured, your beneficiaries receive a lump sum pay-out. This money can be the difference between the people who matter most to you enjoying a decent lifestyle or facing a financial struggle.
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Yet one in four Australians aren’t even sure whether or not they have life insurance.
Many of us have some level of life cover through our super fund. However, this isn’t always the case so it pays to ask. If you have more than one super fund – and 40 per cent of Australians do, you could be doubling up on premiums. The downside here is that paying multiple premiums through several funds, will eat away at your total nest egg over time.
Like all insurances, life cover works best when you have the right level of protection in place for your situation. The insurance available through your super is typically very affordable because your fund ‘buys in bulk’ for a large number of members.
However, life insurance policies arranged through super may not be as comprehensive as standalone cover purchased directly from an insurer.
The solution is simple. Contact your fund or check your most recent super statement to know whether or not you have life insurance.
If you feel that the life cover offered by your superannuation fund is insufficient, consider taking a look at what’s available with an independent insurer.
At least this way you will have control over your family’s financial well-being if tragedy occurred.
