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.
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