August 30, 2016
There have been a few articles lately about inadequacies of personal insurances provided by some super funds. Super funds are putting pressure on insurers to reduce their premiums, which can lead to a reduction in cover. It's important to make sure you have the right cover for your circumstances.
By law, millions of Australians are passively channelled into life insurance policies, including for income protection and death or total and permanent disability [TPD] insurance. They are often structured on an "opt-out" basis, which means premiums are automatically deducted unless the member specifically opts out.
So if you're paying for insurance through your super (or anywhere else!), it's important to check it will meet your needs. This article from The Age examines cases of denied claims due to "hidden nasties" in a life insurance contract provided through superannuation. Apparently there are "hundreds, if not thousands, of Australians each year" embroiled in such disputes.
If you'd like to review your personal insurances cover (income, life or TPD), to make sure you have the right cover in the unfortunate situation where you might need to claim, please call me or my Oakleigh office Financial Planner Patrick Jong Ph 0402 643 893.