If you have superannuation, you probably also have life insurance, unless you’ve actually specified that you don’t want the cover.
It’s more important than ever to know how much you’re paying for life insurance and what you get in return, because insurance premiums for major industry super funds have gone up by around 40% in 2013. It’s a development that could take bite-sized chunks out of your retirement savings.
But even if you factor in the recent premium increases, life insurance with your super fund will still cost a good deal less than a standalone life insurance policy.
Life insurance can pay off your mortgage, debts and other costs (such as your funeral) and, more importantly, provide dependants with a lump sum. It can also ensure important goals are met, such as providing your children with a private school or tertiary education.
Rice Warner, an independent firm of actuarial and management consultants, cooperated with CHOICE on this report by giving us access to their comprehensive database for retail and superannuation term life insurance policies. Also read our article on income protection insurance.
For more articles like this, see our insurance section.
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