Is your life covered by superannuation?
Article by Mozo
Mozo has just launched a brand new life insurance section – allowing you to compare quotes from 12 of Australia's leading insurers with just one search – so we thought it was a great time to shed some light on this widely misunderstood insurance.
Do I need life insurance?
Life insurance isn’t about morbid statistics and pictures of vulnerable babies – it’s about ensuring your loved ones could meet their costs of living if you no longer were. Sure, it’s not terribly cheery, but damn is it practical.
If you have a mortgage to pay off, dependent children or a partner who would be left financially stranded from your untimely demise, it's hard to ignore the appeal of life insurance.
Life insurance is covered by my super fund, right?
Most superannuation funds provide some life insurance coverage, and a lot of people think this is all they need. Unfortunately, many people find the limitations of super fund life insurance couldn’t come at a worse time.
Pros of life insurance through super:
- It is usually cheaper because the fund is able to buy in bulk
- It is very tax-effective as premiums are paid before income tax
- Basic cover often doesn’t require a medical check
Cons of life insurance through super:
- There can be very long delays in life insurance benefits being paid
- You can’t always be certain your life insurance payout will go to the people you want it to
- There are more rules limiting who can receive a tax free payout (standalone life insurance is always tax free)
How much coverage do I need?
Tough one. Too much and the premiums become a burden (and may tempt your family into bumping you off). Too small and your kids will be applying for a busker's license.
Choose a package with benefits appropriate to your needs (or the needs of your family in your absence), rather than the cheapest insurance with the dodgiest policy.
Good question! Now that you have all the details, you can head on over and compare life insurance with Mozo. Simply fill in your details and we'll chase up quotes from 12 top insurers which you can then compare. Easy.