Ensuring that you have the right amount of insurance can provide great peace of mind.
Things to consider when reviewing your insurance
There are several different types of insurance that we offer members; which types you are auto-enrolled in will depend on how you joined the fund.
- Enrolled by an employer: you will generally receive Death/Total and Permanent Disability (TPD) cover and income protection cover.
- Joined as an individual: you will generally receive Death/TPD cover only.
When you’re reviewing the amount and types of insurance you need, here are some keys to keep in mind:
- Do you have enough to pay off any debts including your mortgage?
- If you were unable to work, what would be your future income requirements be?
- If I was unable to work due to illness or injury, how would my expenditure change?
- Could your savings reduce the amount of insurance you need to carry?
In this hypothetical example, Charlotte is a 50-year-old primary earner in her family. She has a partner who works full time and has two dependent children, both of whom are planning to go to university.
- Salary: $90,000 per annum
- Coverage: $1 million in Death and Total Permanent Disability cover
- Debts: $400,000 mortgage, $20,000 in car loans
- Assets: $600,000 in superannuation and bank accounts
Using our insurance calculator, Charlotte can estimate the amount of Death and TPD cover required if Charlotte were to pass away or become totally and permanently disabled. Further, the insurance calculator can provide an estimate of the amount of income protection required if she is unable to work temporarily.