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I have always wondered if it is better to upgrade my Death and TPD Insurance with my super, or have individaul cover. My current super fund is the PSSap (Public Sector Superannuation accumulation plan). I have heard from people that it is a lot harder to claim funds from death /TPD from a super fund then it is with insurance providers.
Without giving you a product advice and using just my experience, this plan outsources their insurance offering to a retail insurer (from memory it’s AIA). This is a reputable insurer and should have the ability to pay claims, especially death claims which are easy to proof.
Structuring some personal insurances via super can be a good way to fund your cover especially if you haven’t got cashflow to pay for it.
What you will need to check out are two more important issues:
- Were you automatically accepted when you joined this employer or actually applied for the cover and went through underwriting process? If you haven’t been underwritten, you need to study the terms and conditions under which you were accepted, especially in regards to pre-existing conditions.
- What legal arrangements you have in your super in regards to passing your super savings in case of your sudden passing? I stress out the word legal (not just preferred beneficiary) since your super doesn’t form part of your estate and cannot be dealt with via a Will.
These are very serious issues and can be detrimental to your future. You can either try to work them out on your own or seek quality financial advice. It’s worth every cent.
Lastly, there are other types of insurance cover you’re much more likely to claim on then just death and TPD cover. I recommend that you look at them.