One in five Australian parents will die or be unable to work due to illness, injury or disability before retirement age, yet many families are not prepared for this prospect and have no financial peace of mind if the worst were to happen.
In house financial experts at LifeInsuranceComparison.com.au note this could be set to change, with the emergence of a new option that will help more Australian consumers to safeguard their financial security through life insurance – even those who assume that they can’t afford to buy cover.
“Australians who are currently struggling to afford to fit life insurance into their budget can benefit from starting a new policy or moving their existing cover into superannuation. This often overlooked trick can help consumers to save significantly on their life insurance costs”, explains Nick Kolevski, a Senior Advisor of LifeInsuranceComparison.com.au.
The benefits do not stop there though. Life insurance premiums are taken from the superannuation balance, meaning that cover is affordable even to those on a tight household budget. With premiums automatically being deducted from the fund balance, consumers do not have to worry about paying premiums on time. There can also be a tax advantage as premiums may not be paid from post tax income.
Consumers can usually get death cover, Total and Permanent Disability (TPD) cover and Income Protection insurance, but Critical Illness/Trauma insurance is not available through superannuation.
Making the move to superannuation is ideal for consumers on a strict budget that would not otherwise be able to afford life insurance cover. This enables them to protect their family’s financial future if the policyholder were to die or be unable to work because of illness or injury.
Experts estimate that consumers can make big savings by moving their life insurance into superannuation, and thousands of Australians are already taking advantage of the opportunity.
Here’s How You Do It:
Step 1: Select your state 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.
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