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Many doctors, dentists, other professionals and employees are members of a superannuation fund.  And most such funds offer life, total and permanent disability (TPD) and income protection insurance for their members.  This is sometimes referred to as “group” insurance in superannuation funds.

One issue that could arise, is that most super funds will automatically provide you with life cover and TPD insurance with a specific amount. This is a default amount and is what you will be given unless you ask for something different. Some will also automatically provide income protection insurance. This insurance is for a specified amount and is generally available without medical checks.

TPD insurance cover in super usually ends at age 65. Life cover usually ends at age 70. Outside of super, cover generally continues as long as you pay the premiums.

Under the law, super funds will cancel insurance on inactive super accounts that haven’t received contributions for at least 16 months. In addition, super funds may have their own rules that require the cancellation of insurance on super accounts where balances are too low.

A large life insurer, MLC, released research in April 22 from a survey of 1500 everyday Australian superannuation fund members to find out how they’re engaging with their group insurance products within super.

The report can be found here MLC group insurance life research April 22

The research provides interesting findings such as :

1. The majority (83%) of Australians with insurance in superannuation said it was important, however only 42% ever review their cover.
2. Forty three per cent said they did not think the life insurance they had was right for their circumstances, and 71% said they wanted it to be more personalised to them, so that they only paid for what they needed.

It therefore shows that many members of super funds are missing from Personal Advice with regards to their life cover.

Experien Insurance Services offers life insurance clients Personal Financial Product Advice. This provides tailor made recommendations for clients based on their needs, obligations and circumstances.  This is missing in a model like that seen with automatic or vanilla, default, cover given to members in super funds where one size may not fit all.  Many super funds can offer financial planning services if asked where personal financial advice may be offered, potentially with a fee being payable.

Contact us for a complimentary review with no obligations.

The information provided contains general information and examples and does not take into account your personal objectives, financial situation or needs. Note that the policy wording will differ from insurer to insure and loadings, exclusions and other limitations may apply by the insurer to each applicant on a case by case basis.

Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. See our website for our Financial Services Guide.  Always read the Product Disclosure Statement issued by an Insurer before considering insurance