75% of Australians may be at risk of having inadequate superannuation in the event of early death or incapacity.
Even individuals with small super balances can qualify for life insurance. If you have not checked your super fund's offering you should log on to their website or call their Contact Centre to ask for details.
I often hear consumers label superannuation and life insurance as boring. If you die leaving a young family and debts, a life insurance payout to your family to save them from financial trauma is anything but boring!
One in four consumers are unsure of the accessibility of life insurance through superannuation, according to a new report released last week. The report The life insurance literacy gap – released by Zurich and the Financial Planning Association of Australia – showed that Australians who had received financial advice were more likely to be aware that they could obtain life or TPD insurance through their superfund, and are more knowledgeable than those who had not sought advice about a number of other factors including the current individual level of cover, cost of premiums, tax deductibility, and events that lead to payouts. Other key findings included: 26% had the default level of life cover through their super, with 11 per cent saying they had higher cover. 52% took out their life insurance through super with no assistance from a financial planner.