I've Got Income Protection Insurance Through My Super Fund. Don't I?
In Australia, it takes exceptional circumstances to make it possible to access your saved superannuation before you hit retirement age. However, it is possible to use the money to ‘prepare’ for your retirement, and this leads to insurance policies like life insurance, TPD insurance and income protection insurance being frequently offered through super funds. Since the mid-80s most new industry funds started to provide basic life insurance cover, and TPD and income protection insurance are now common also. Unfortunately, though, many of us don’t pay as much attention to the terms, conditions and benefits of insurance when it comes through our super funds and industry analysts say that an increasing number of people aren’t getting what they expect from a super-provided income protection policy.
Super-based Income Protection – Good Value?
There is a significant under-insurance problem in Australia – currently only 6% of people have income protection insurance outside their super fund. Most of us tend to take the stance that “It won’t happen to me”, and end up finding that of all the things that can happen to us, there are usually one or two that do! From this perspective, industry analysts say that having ‘some’ income protection provided through your super fund is definitely better than having ‘none’.
March 06 2011 | What You Should Know About Income Protection Insurance And How Income Cover Can Help You | Comments Off