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8 October 2014

Three benefits of taking out life insurance through your super

Weighing up life insurance options? Super funds can tick a lot of boxes when it comes to life cover, says ING DIRECT’s Tim Hewson, making it easy for you to manage everything all in one place.

Even though superannuation is normally associated with saving for retirement, it usually offers you the option of taking out life insurance which can help to protect you and your family financially in case the worst happens, as well as other insurances such as Income Protection (IP).

Here are three benefits of organising life cover through your super:

1. It’s easy to organise

Chances are, you’re pressed for time. And let’s face it, most of us would rather spend our time having fun than chasing the best deal on life insurance. That’s just one of the pluses of having life insurance through your super fund.

Most funds have the option to apply for insurance through a short, simplified application process. Plus, as it is part of your super fund there is no extra paperwork to keep track of.

2. Enjoy great value on premiums

Buying life cover through your super fund is often a lot cheaper than taking out independent cover. That’s because superannuation funds organise life insurance for a large number of fund members, which can mean ‘group discounts’ are passed on to fund members.

It’s a bit like the savings earned through buying in bulk – and it means you get great value for money.

3. Potential tax savings

Your super fund will use contributions to your super account to pay life insurance premiums. These premiums are often tax deductible to the super fund, meaning that you’re effectively paying with pre-tax money. So it can be tax effective to buy life insurance through your super rather than using your own after-tax money, which is the case if you arrange life cover outside of super.

Paying for life cover through your super fund means there is no impact on your hip pocket today. So you could afford to have life cover in place – and protect your family financially, even if money is tight.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms

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