Consumers need to be aware of the cheap offers of life insurance that arrive in your letterbox.
The size of the premium determines the amount of cover. The smaller the premium the smaller the amount of cover.
The most important thing to consider when applying for life insurance is how much money would be required to meet your family's needs, in the event of your death.
One of the most important things to consider when taking life insurance from super funds is the quality and cost on the insurance the various funds provide.
Taking life insurance cover through your super fund is usually very cost effective, but it is important to ensure that the cover suits your needs.
As more employer superannuation funds are imposing tighter terms and conditions on payouts, it is crucial that you make yourself aware of this before relying on a funds insurance cover.
Why taking out life cover and TPD insurance through a super fund can be beneficial:
The disadvantages of taking insurance through a super fund are:
Life insurance benefits paid from a super fund are usually tax-free if paid to a dependant.
Benefits paid from a policy held outside super is tax free no matter who receives it.