Super or non-super. Now it is easier to decide.
With changes in the law, you can only hold Trauma outside of super. With Life, TPD and IP, you now have the choice of having it in Super, outside of Super or holding the policy both in & out of Super at the same time. 
Compare insurance companies with ease
At Find Insurance, we have made it easy for you to compare and acquire insurances with some of the largest and most established companies in Australia.
Currently, most Australians hold insurance inside of super. This is because industry funds have to provide a certain level of insurance cover when a new member joins their fund. Unfortunately, this makes people feel as though they have adequate insurance cover in place when in fact this might not be the case. Default cover may not always be the most appropriate cover for you and it may be too late at claim time when you realise this. Even so, we consider unitised cover (the automatic cover you get in an industry fund) as a good amount of insurance but it is not always the most appropriate you can have.
The BEST way to hold insurance is in your own name?
It is our view that it is ideal to hold the insurance directly in your own name and not in superannuation.
So, why don’t people do this? One reason only – affordability. Most people have mortgage repayments and other bills. They believe they cannot afford to have all the insurance held outside of super. It is a balance between what you need and what you can afford. We call this the difference between ‘the ideal’ (what the industry says you should have) and the ‘real’ (what you can afford). We jokingly say that the two shall never meet.
Whilst affordability is a reason why insurance is held in super, there are some benefits of having insurance held in super, such as tax efficiency, tax deductibility of the insurance premiums passed onto members potentially reducing the overall cost, group rates (lower premiums), ease of access (fewer health checks). It is important to understand that what is the ‘best’ for one client may not be for another client. This is why it is important to seek advice and speak to an advisor about your insurance needs.
If money is an issue then consider in & out of Super
If you cannot afford to have cover in your own name outside of super, then consider a compromise between affordability and what we believe is ideal – go for Better. In our opinion, a better way of holding super, rather than simply having unitised cover in an industry fund, is to have the following:
1. TPD – have one policy but held both in and out of super. The part that is held outside has ‘Own’ occupation TPD and the part that is held in super has ‘Any’ occupation TPD. The Better part of this is that up to 95% premiums are paid from super and you can access to ‘Own’ occupation definition. Where possible we will supply TPD quotes with this type of set up – in & out of super unless you instruct us otherwise when requesting a quote.
2. IP – have on policy held both in and out of super. If the IP is not paid based on ‘any’ with in super then they will look to pay based on ‘own’ outside of super. Again, up to 95% premiums are paid from super. Where possible we will supply IP quotes with this type of set up – in & out of super unless you instruct us otherwise when requesting a quote.
3. Trauma can only now be held outside of super. We will supply quotes with Trauma held outside of super with you as the policy owner.
4. Life can be held in or outside of super. We will supply quotes with Life held in super.If you would like to work out how much Insurance cover you might require then book a time with an advisor who can help you work out what your insurance needs are.
