Traditionally, paying insurance premiums through your super fund has been an attractive option for two reasons:
However since new legislation came into operation on July 1st 2014 trauma cover can no longer be held inside a super fund. Reason is that super law states that the proceeds of policies can only be released because of:
Trauma cover does not meet these conditions. However if you have existing trauma cover within your super fund you will not be affected as provisions have been setup for these policies to be grandfathered.
Rate Detective Definition: What is Trauma Cover?
Trauma Cover Insurance pays a lump sum in the event of a diagnosis of condition, e.g. cancer, stroke, heart attack, major head injuries etc.
So if you are looking to establish a new trauma policy it must be done outside of superannuation to be compliant with changes in the law.
Some insurance companies do of course have facility to allow you to flexibly link some of your existing life cover plans inside of super with other life policies outside of super, such as trauma cover. You need to provide separate payment details for each component when setting it up.
A secondary advantage of this is that you might still be able to deal with just one insurance company, for all your insurance needs.
At Rate Detective all our consultants are fully trained in the attest legislative changes, in fact they make it their personal mission to know the ins and outs so they can best advantage you in your decision making.
Contact us today and we’ll be happy to answer any of your enquiries about existing policies you hold or a policy you are thinking of taking out.
At Rate Detective although our advice is priceless it’s also free.