If this sounds like you, you might want to think again.
Last week I was explaining to a friend, lets call her 'Mary', the differences between insurance through an industry super fund vs insurance acquired through an independent financial advisor.
One of the big differences is that an industry super fund can change the terms and conditions of your insurance without your knowing. Retail insurers, accessed only through a financial adviser, CANNOT do that.
For example, earlier this year one of Australia's biggest funds, HESTA, announced a major change to their benefits for standard income protection. If you have a benefit period of 'to age 60' or 'to age 67', you now only have a 5 year benefit period. This change imposed by this particular fund is just an example of a major change that happened to the level of protection provided to their members.
Back to Mary. She's 47 and has her income protection with HESTA. If she has an accident or illness that stops her from working today - she would have previously been paid right through to age 67. But now with the changes to her retail super fund, Mary will be on her own after 5 years.
Needless to say, Mary was gobsmacked and also felt a tad ripped off. She was led to believe that her insurance in her super fund was a great comfort to her.
Like all superannuation funds, you have the chance to apply for cover to age 60 or 67 - but the cost will increase.
It is also not likely to be the same level of quality comprehensive cover that you may get if you seek insurance advice from a
qualified financial planner - particularly
one that specialises in risk insurance.
It's a tricky area to navigate. We'd love to chat about your specific insurance needs to ensure you have complete peace of mind. Give
us a call on 03 5911 7000 to start a conversation.
Get in touch. Insurance is totally our jam!