What’s the best life insurance option for you?
When thinking about the best life insurance for your needs, it’s wise to look at a few comparisons. Most super funds offer different types of insurance, including life insurance (also known as death cover), total and permanent disablement cover (TPD) and income protection (IP - also known as salary continuance cover).
Paying insurance through super can be a good choice because funds such as TWUSUPER negotiate group insurance to keep the costs down for members and ensure our product is designed to suit our members' needs.
The catch is that not all cover is the same. For example, some super funds won’t cover what they call ‘high-risk’ or ‘dangerous occupations’. This includes drivers, flight crews, warehouse workers, builders, security guards, personal trainers, fishermen and even photographers! The terms and conditions for TPD, death and IP insurance may vary between policies.
TWUSUPER provides automatic life insurance and TPD cover within super for people in high-risk jobs.
This is because TWUSUPER has a dangerous occupations exemption, meaning our insurance covers high-risk occupations and it’s switched on after you start receiving super from your employer and reach an account balance of $500. With most other funds you need to wait until your balance reaches $,6000 and/or you are aged 25.
So, if you think you may be missing out because of the job you do, it might be time to think about switching your super to TWUSUPER.
Join TWUSUPER…and get fit-for-purpose insurance that does the job.
Cheap life insurance?
Life insurance which doesn't take a dollar from your bank account seems cheap, right? Remember that you are paying for the insurance from your super account instead of your bank account which may affect your final retirement benefit.
Compare TWUSUPER’s insurance options
Here are the different types of insurance TWUSUPER offers.
If you’re employed and receiving Super Guarantee (SG) payments from your employer into your TWUSUPER account, death and TPD default cover is automatically included in your TWUSUPER membership if you are aged between 18 and 65, with default death cover continuing until age 70.
Extra, voluntary cover
All applications for additional insurance throungh your TWUSUPER membership can be completed online.
As an employee
If you think the amount you’re automatically insured for isn’t enough, you can apply for additional insurance. This additional insurance cover is paid from your super account, not your hip pocket, The product has a number ways to tailor the insurance cover to suit your needs and/or cost tolerance. You can use our calculator to get an idea of what might suit you.
As a self-employed person
If you’re self employed as a sole trader (for example, as an owner driver), you can apply for insurance with TWUSUPER as voluntary cover. If you’re self- employed as an incorporated company or trust, you should be paying yourself SG and therefore insurance will be automatically switched on just as if you had an employer. And you can tailor the cover to suit your needs.
Did you know if you join TWUSUPER you can transfer your insurance from your other fund*? You can do this if:
- you’re joining TWUSUPER for the first time or are an existing member of TWUSUPER;
- you have superannuation with another fund where you are entitled to a death and/or total and permanent disablement (TPD) benefit and/ or income protection benefit under that fund; or
- you have an individual death and/or TPD and/or income protection insurance policy outside of superannuation from a life insurer.
Once you have received written confirmation your insurance cover has been transferred to TWUSUPER, you can roll in any other superannuation account balances (also known as consolidation of accounts).
Lifetime event cover
Following a ‘lifetime event’, if you currently have insurance cover with us, you may be eligible to apply for increased death only, death and TPD cover, and/or income protection cover without the need to provide medical and lifestyle evidence.
Lifetime events include:
- a salary increase;
- marriage (or divorce);
- having a child (including adoption);
- a child first starting primary or secondary school;
- taking out a mortgage on your primary residence (to purchase that residence);
- the death of a spouse; and
- first becoming eligible for Centrelink Carer's Allowance.
Frequently Asked Questions
Do I need life insurance?
Many people start looking for life insurance when they have a major life event like getting a mortgage or having children. But this is also a time of financial pressure, and often people ask if insurance is affordable right now. The great thing about insurance through your super is that you’re not paying for it out of your bank account, so even when you’re looking to tighten your belt, you can still have good life insurance and peace of mind for your loved ones.
How does life insurance work?
Life insurance works by providing cover for you and peace of mind for your loved ones in case tragedy strikes. Policies can be automatically included in your super with premiums paid for out of your super balance, and in the event of death, your super (including any insurance) is paid to your beneficiaries.
Which life insurance is best?
There is no one-size fits all insurance solution, so look for what best meets your needs. Maybe you want basic cover at a low price, or you want a higher level of cover that still offers good value. Make the comparisons and check the different options and policies (including fine print on occupation exclusions) and choose the type that’s right for you and your dependents.
*If you are considering cancelling or replacing your existing insurance cover, be aware there are risks in doing so. You should consider the terms and conditions of each insurance cover before deciding to make a change.
Please note that acceptance of your transfer request is subject to the Insurer’s acceptance and some limitations apply. Do not cancel your existing cover until you have received confirmation in writing that your transfer request has been accepted by TWUSUPER.