Changes to superannuation are coming on 1 July, and there could be a significant impact on Australians who hold life insurance in their super. New regulations mean that an unexpected death in the family could have a serious affect on a family’s long-term finances.
Customers are encouraged to take a close look at these changes to ensure that it will not affect their life cover planning. Those who hold life cover through their super may find that it’s time to compare life insurance to find a better deal.
The Federal Government is implementing a 1.6 million dollar cap on superannuation pension balances, a figure that seems higher than the average Australian will achieve. However, if you think you are likely to be unaffected and you hold life cover through your super, think again.
Many Australians opt for life insurance through their super because of sheer convenience. You don’t have to pay separate premiums for valuable coverage, so it can seem like you’re getting life cover for free. Of course, this is not the case, especially in light of the new rules.
Here’s How You Do It:
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 13 of Australia’s largest insurers. You may also be entitled to a free consultation.
Prior to the cap, life cover through super could be held within the super system. For example, if your spouse passed away then the life cover benefit could be paid into a tax-free pension. That may no longer be the case, because a life insurance payout could cause the surviving spouse to go beyond the cap.
The result of exceeding the cap is that a beneficiary may have to take money out of the system, which could affect long-term retirement strategies and financial planning. An unexpected death could force the funds from two individual super accounts plus a life insurance payout to be combined. Those combined funds would then be subject to a $1.6 million cap.
The new rules could drastically change the benefits provided by life insurance through super. It’s worth taking a few minutes to compare life cover, because you may find that there’s a more affordable policy available that suits your needs.
Visit LifeInsuranceComparison.com.au for a free quote that could change the way you look at life cover. An expert consultant will be able to walk you through the process of switching to a new insurer, as well as clearly explain what you can expect from your policy.
Life cover is a vital purchase for many Australian families who can’t afford to have the rug pulled out from under them by rule changes. When you compare with Life Insurance Comparison you’ll get the peace of mind that comes from knowing that your family’s finances are safe, no matter what.
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.