Super funds are now permitted to provide Income Protection Insurance benefits to age 65 due to the government's recent decision. In the past, income protection cover through super was only provided for a maximum of two years.
Unfortunately you are unable to include extra benefits such as trauma cover as these are considered not to meet the purpose of what super was intended for.
There are two definite advantages to purchasing your Income Protection through super:
There is a similarity between Accident and Sickness Insurance and Income Protection. They both provide 75% of your monthly gross income as a benefit in the event of your being unable to work due to injury or illness. Accident and Sickness Insurance is usually offered by general insurance companies and combined with a business insurance pack.
Should the insurance company make the decision that you are a high risk (due to you lodging a claim on your policy) they may choose not to offer you insurance when your policy comes up for renewal. These are called abolished contracts and are not recommended.
With Income Protection once the policy is in force the insurer cannot cancel your cover (as long has you mentioned all previous medical conditions) even if you have lodged a claim and or your occupation has become a higher risk or your health has degenerated.
Sickness and Accident cover is relatively cheaper to obtain and there are no medicals required and with Sickness and Accident cover certain occupations are covered that Income Protection does not cover.
However the difference in premiums between the two types of policies has considerably dropped due to a change in the underwriting guidelines.
For further information on Income Protection Insurance or Sickness and Accident cover contact one of our advisers who will point you in the right direction.