Having insurance through your super can be incredibly beneficial. You’ll generally get cheaper, easier-to-pay premiums, and with your employer’s contributions usually taxed at a slightly lower 15%, you’ll get tax benefits, too.
But when circumstances change, so may your insurance policy. It’s important that you’re aware of how life’s twists and turns may affect your super fund, and how you can ensure the claims process runs as smoothly as possible.
In this post, we’ll be highlighting some of the most common mistakes people make when it comes to superannuation accounts today.
Mistake 1: Not Updating Your Job
If you’ve changed jobs, and you’re now working in a hazardous occupation, you need to check that your insurance will cover you if a workplace injury prevents you from being able to work in the long run. Not all insurances cover hazardous occupations, so you may be needlessly paying money into your super account should a workplace accident occur in the future. Make sure you tell your insurance provider if you change jobs, no matter what.
Mistake 2: Not Keeping Up With Changes
It may be the case that your insurance changes the terms of its policy at some point throughout your life. In this case, you’ll usually receive an email at the time with a notice of the changes. If you don’t take into account these changes – or you don’t read the email updates at all – you may be continuing with a policy that isn’t the right fit for you. If you’re unsure what a policy update is all about, call your insurance or speak to a financial adviser.
Mistake 3: Not Updating Your Age
If you’re aged 65 or over, you’re at the official retirement age. While most people don’t consider retirement for at least five years after this, many life insurance policies will no longer cover you once you hit this age. If you don’t want to think about retirement just yet, you will need to look for another insurance through your super, which will allow you to continue working in the long term. Keep in mind, however, that many of us are more prone to injury or illness when we get older, which is why it’s so much harder to find cover beyond the retirement age of 65.
Mistake 4: Not Sharing Your Entire Medical History
It seems tedious, but if you want to make a claim through your superannuation fund, you’ll need to have shared all the right information regarding your medical history. If you don’t, when it comes to accessing money from your super funds, an insurer could decline your claim as a result of non-disclosure.
Mistake 5: Not Claiming When You Could Claim
This is why it’s so important to check your cover – many policies now include mental illness as a claimable term. If you have to take time off work for a personal mental health issue, you might be able to receive some sort of income supplementation. Check the terms of your policy carefully if it’s important to you that mental health is claimable.
Whatever the case, if you’re unsure, our independent advisors are happy to chat to you about any aspect of your financial situation or needs when it comes to your super fund.