Thursday, April 17, 2014

Ways to maximise superannuation and it's benefits

Do you know all the benefits your superannuation account has?

From the moment you start working your employer should be paying into your superannuation account, 9.25% to be exact. You can choose who you go with and there are significant differences between superannuation companies so it is worth it to shop around.

The main benefit of superannuation is obviously having money for retirement, but did you know there are other benefits such as life insurance, TPD and income protection insurance you can access? By default your superannuation fund will have a minimal amount of cover, but you can opt to increase this cover and have the premiums paid from your superannuation, which in many cases works out much cheaper than separate insurance.

Having these insurances is very important and it is a relief to know that even though you might not be able to afford the insurance separately, if you are working there is likely to be some level of cover with your super fund which you can access. Also, if you have more than one superannuation account because you haven't gotten around to combining them, you may be eligible to claim from multiple accounts, but it is best to get advice from a professional to ensure you get what you are entitled to.

As a single mum, I would not be without insurance. For example, should something happen to me, life insurance will ensure my children are financially covered and that their legal guardians aren't placed under financial pressure taking on two more children.

With temporary and permanent disability insurance if I were to be injured or end up with a fatal disease, again financially we would be ok.

Income protection helps should I be out of work temporarily.

These insurances, if paid for outside superannuation could easily cost a family $1,000 a year per parent. Not having to pay this money, but still having the peace of mind that your family is protected is a great bonus many do not realise their super has. Make sure you know how much you are covered for, compare insurance policies and get legal advice if needed when claiming to ensure you get what you are entitled to.

Do you have these insurances through your superannuation or separately?


  1. Using a superannuation is a great tool. Like you said, these sorts of insurance policies are truly very valuable. The peace of mind alone is worth it, but the costs can add up disturbingly fast. Finding ways to make it more doable is absolutely worth the challenge.

    1. Absolutely. Worth it to save some money and still have everything you need.

  2. I think it is also worth noting the limitations these insurances have though. Most income protection policies only pay if you are unable to do any kind of work. So, for example, if you are a laborer and are injured, but are still capable of doing a job somewhere else (like an office), then you might not be eligible for a payout. If you have income protection insurance outside of your super, then you are covered if you are unable to return to your current job. Plus the premiums are tax deductible.


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