It seems like there’s fine print attached to everything these days and it’s no different with your super’s insurance. Have you read the fine print that covers you in the event of an accident or illness? There’s always important information in your documents, so now is as a good of a time as any to make sure you’re aware of the fine print and what it means for you. Here are 3 reasons it’s important to check the fine print on your super’s insurance.
Insurance premiums go up, and when coverage gets too expensive for insurance companies, cuts are often made. Many Australians have their life, disability and income protection insurance through their super funds. If an accident or illness did happen, that’s not the time to find out that there have been changes to your policies. Go over your most recent documents for premium increases and changes in coverage. Also, look over your old paperwork to see if you have less coverage than you used to so you can see if there are any areas in coverage that you need to fill.
When you have insurance through your super, the money for those premiums are automatically deducted through your super. If your premiums have increased, that’s less money that you will end up contributing to your retirement. You may think that your retirement goals are on track, only to find out that you’ve been paying more for your insurance. Additional insurance premiums deplete your super fund amount and return potential.
Many people assume that if they have insurance through their super and they need to use it, the full amount will be paid out. Unfortunately, this isn’t always true! For example, with death benefits, 16% of funds paid out less than the full amount in 2016. When it comes to TPD, the statistics are also concerning – 28% of insurance through super funds paid out the full amount. Similar statistics hold true when it comes to income protection insurance as well.
What can you do? Read over all your documents; especially the fine print. Call your fund to find out exactly what you are covered for and what limitations are attached to them. It’s always better to be prepared than it is to wait for something to happen. You don’t want to be in the situation where you realise you don’t the coverage you through. If you find that there are any gaps that you need to fill, you can decide if you want to purchase additional coverage. Contact Ricarmo today, and speak to our insurance specialists.