So you’ve got life insurance in your super. Does that mean you’re all set? If you have a kind of life insurance known as “ADL” (commonly found in super), you could be a part of the 60% who get their TPD claims denied.
Over 12 million Australians automatically pay through their super for TPD (Total and Permanent Disability), a popular type of life cover. But how many actually get paid out? Recent findings from ASIC (the Australian Securities and Investments Commission) revealed less than half. If you’re seriously injured or sick, the last problem you want on your plate is a big fat ‘no’ from a policy provider you’ve been paying all your life. Not to mention all those funds from your super gone down the drain…
One way to avoid this fate is by setting up a comprehensive stand-alone life insurance policy outside of super. Not only could this cover give you and your family total peace of mind today, but it could even offer far better value than what’s in your super.
At the end of the day, you want your policy to actually pay out when you or your family need it most. Luckily, as more and more reputable insurers compete for your business, finding an amazing deal has never been easier.
Here’s How It Works:
Step 1: Select your current age below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 9 of Australia’s largest insurers. You may also be entitled to a free consultation.
<35
35-44
45-54
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65+Perhaps you’re worried about the “ADL” coverage that might be sucking your super dry right now.
Don’t sweat.
Firstly, not everyone who has this coverage gets their claims denied. Secondly, not everyone even has this type of coverage in their super. But if you do, it could be time to investigate.
People began to worry after ASIC conducted a review into the design of TPD (Total and Permanent Disability) benefits within basic life insurance policies. The findings were shocking, particularly in regards to “ADL”.
“ADL” stands for ‘activities of daily living.’ It’s a type of policy that generally only pays out in extremely serious circumstances, such as an event where you are so disabled that you are permanently unable to feed, dress or wash yourself.
But the fact is, many Australians who are disabled and can do those things still can’t work. If this ever becomes your situation, an ADL policy may reject your claim on the grounds that you’re still at least able to care for yourself.
If you don’t have anything else prepared financially, you’re stuck.
The 60% decline rate on this narrow type of TPD insurance (ADL) is five times higher than the average declined claim rate for all other TPD claims.
ASIC went as far as to say that Australians were still being sold “junk policies”—even by superannuation providers. The purpose of TPD cover is to provide you financial protection in the event you ever fall so ill or suffer such an injury that you can never work again. It might be uncomfortable to think about but it can happen to anyone.
The best way to ensure that what you’ve set up will come to the rescue when you need it is to set TPD cover up on your own terms. Bear in mind that this could still be done through your super, if you are satisfied with the terms of the policy.
However, you can’t get trauma cover through super. Trauma insurance covers a wide list of illnesses and injuries that could potentially pay out if your TPD doesn’t. If you currently have life cover set up in your super, you might want to ask yourself:
- What is this actually covering me for?
- How much is this costing me and my future retirement?
- What’s the likelihood of this even paying out?
For many Australian families, the default cover in super simply isn’t suitable protection. If you have a mortgage or dependents, it’s especially important to know how much you’re covered for.
You could always give your super provider a call, but many Australians simply prefer to have a comprehensive policy set up outside their super with a leading life insurer. That way, they can set up all their important living benefits (like TPD and trauma cover) and death benefit the way they want to.
A fast and simple way to compare life cover is to use the easy comparison tool.
At Life Insurance Comparison, the team of friendly specialists can assist you with finding the right TPD policy for your situation and offer guidance on a range of other important types of life insurance.
Don’t know where to begin? Leave it to specialists who know the territory. The team at Life Insurance Comparison have been tracking the market for years and know how to get the best cover set up for you.
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.