Industry Super Fund insurance premiums rise 50% or more
If you or your children have insurance through an Industry Super Fund (e.g. Australian Super) now is the time to review the included insurances.
In the past, Industry Super Funds have been able to offer low cost insurance to their members and we have often recommended clients purchase, maintain or increase these insurances. Recently, we’ve seen a clear shift in this offer, which is likely to continue. As a result of escalating claims, many Industry Super Fund members have seen their insurance premiums increase dramatically. We know of cases where the premium has increased well over 50% in one year.
Insurance is still as important as ever
Higher insurance costs will impact your super balance, so it’s an area worth attention whether you’re in a wealth accumulation phase or pre-retiree period.
Whatever your personal situation, it's important to regularly review your level of insurance. Failing to do so is one of the most common and costly mistakes we see. The only thing more unfortunate than missing the road to health, wealth and happiness is having an unexpected illness or tragic life event throw you off course when you're well on the way to reaching your destination.
When we consider the amount to insure you for, we encourage you to ask some pretty tough questions. For example, if you died, what debts would need to be paid off? And how much money would be needed to replace your lost income and retain the standard of living you want for your family?
We also consider other “what-if” scenarios apart from death, like what if you had an accident or suffered an illness and couldn’t work for 6 months or more? How would the mortgage be paid and could you afford other expenses? Could you be at risk of losing the house if the loan repayments were not met? Even worse perhaps, what if you could never work again? Appropriate insurance can cover you against these and many other “what if” scenarios that may keep you awake at night.
What are the alternative options?
The quality and cost of insurance varies and products frequently change. Choosing the right cover is complex and approval isn’t usually automatic for the better policies.
To ensure you or a family member is not paying too much for insurance - please contact us for a Free Financial Health Check.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.