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Will your insurance cover you?

The fine print in contracts can be a maze to understand. Often people will have some insurance in their superannuation, however this insurance is generally minimal and may not be what someone expects when they need to make a claim. Leaving us questioning “Will your insurance cover you?”.

Differences in policies may come down to a few subtle word changes which the average person may not even consider would change the outcome of a claim. This is most concerning and in spite of the government supporting transparency in the financial system the current arrangement of people relying on insurance within their super fund may leave them relying on Centrelink payments rather than insurance payouts.

So how does it currently work? Most super funds have insurance for their members; this typically includes life insurance, total and permanent disability (TPD) and income protection (IP). The premium for this insurance cover is deducted from your super account balance. The cost of the premium is appealing as the super fund buys the group insurance in bulk and therefore can be a low cost for members. But, at what cost?

This “Opt-out “system where you have automatic cover without a need to undergo medical assessments may sound attractive, however there have been a number of cases where members certainly would have been in a better situation had they known what cover they would prefer to “opt in” for and make an informed decision.

The underinsurance problem in Australia cannot be solved by default insurance in our super. We need avenues to discuss people’s insurance needs and assure they are covered in a way they and their families feel secure should an incident occur. So, “opt in” and let us assist you in finding insurance that is right for you and your circumstances.

Don’t leave it to chance; contact DFG Wealth (03) 5976 8426.

Secure your financial future today!