Overcome under insurance
Under insurance is a significant problem in Australia. What does this mean? It means a vast proportion of the Australian population, should they die, become ill or incur a disability, would have inadequate insurance in place to cover their own or their family’s financial requirements.
One way to fill this insurance gap is through your super!
Did you know?60% of famillies with dependent children do not have enough insurance to cover the household expenses for a year if the family bread winner were to die. As a super fund member you have access to Death, Total and Permanent Disablement (TPD) and Salary Continuance Insurance (SCI) cover. |
How much would your family need should anything happen to you?
That all depends on your individual circumstances, but let’s look at the following three examples.
Sally |
Peter |
John |
|
| Annual cost of day to day expenses (family of 4) | $20,000 |
$40,000 |
$60,000 |
| Years of family support | 15 years |
15 years |
15 years |
| Lump sum amount required | 15 x $20,000 $300,000 |
15x$40,000 $600,000 |
15x$60,000 $900,000 |
In each instance it is assumed you are unable to earn a regular income for a period of 15 years* – during which time day to day expenses must still be met.
As a result, a substantial lump sum would be required to support your family in the future.
Did you know?Most Australians insure their homes and cars but less than a third insure their most valuable asset - their income.^ |
Next steps
For additional information on the different types of insurance cover available or how to increase your coverage, contact a Member Services Consultant on
1300 55 7586.
Alternatively, to find out of you have adequate insurance cover, login to the member section of the website and check out the Insurance gap calculator. You will also find an Insurance election form in the member section which you can download and complete to change your level of insurance cover.
Did you knowThose individuals that have death cover through their super fund have less than half the level of cover they need.^ |