Income Protection Insurance Through Superannuation

You ll find details about your insurance options including cover designs work ratings changing or cancelling your cover standard exclusions and information about nominating your beneficiaries.

Income protection insurance through superannuation. Australiansuper combined with tower australia are to provide default income protection cover that will pay 75 of your salary plus extra 10 contributions for up to two years in the event of illness or accident. You can find out more about income protection cover through australiansuper by reading our insurance in your super guide. One possible solution may be to continue with your current income protection policy inside your super because this cover is cheaper to obtain this way as group cover but supplement this with a policy outside of your super. Check with your super fund.

The policy will generally pay a percentage commonly 75 of your usual wage or salary. It is sometimes called salary continuance insurance. There are some policies which will pay to age 65 or older. Income protection ip is available through about a third of super funds as default cover.

There are many benefits of this ownership structure however clients must also be aware of the potential pitfalls. Income protection from your superannuation is an easy and affordable way to protect your income if you re unable to work due to illness or injury. If something happens and you need to claim on your income protection insurance it can also be more complicated and time consuming if your income protection insurance is through your superannuation. It is one of three kinds of insurance available inside super the others being life and tpd.

However it does have its limitations. This tax free status can be affected if the benefit is paid out through a superannuation fund or if the benefit is. Income protection benefits will only be paid for a set period commonly 2 or 5 years. That s because the fund manager needs to decide whether you meet the fund s conditions of release the rules that allow them to pay money to you.

Most superannuation funds offer insurance for their members. Because super covers you for the first 2 years you could specify a longer waiting period of 2 years with your. Income protection insurance tax deductible.