Life Cover helps you financially protect your family’s lifestyle if something happens to you. It provides a lump sum payment if you die or are diagnosed with a terminal illness. This money can help you eliminate debts, provide for your children’s education expenses and deliver an ongoing income to support your loved ones.
Amount of Cover
The sum insured depends on your individual circumstances. As a general rule you should aim to have enough cover to repay all large bills and debts and provide your family or dependants with enough remaining money to live off at a reasonable standard.
Structuring your premiums
Level v’s Stepped premiums
To help you structure your premiums to suit your budget and cash flow needs, we provide two premium options:
- Stepped premiums generally start off lower relative to Level premiums and increase every year as you age.
- Level premiums are averaged out over the policy duration, which means you generally have higher premiums relative to Stepped premiums during the initial years, but lower premiums in later years.
Premiums are also influenced by numerous factors including age, health history and the amount of cover required.
Funding your insurance using Super
Life cover can be structured both outside and inside super – where you can take advantage of the taxeffective super environment.
Holding your Life Cover inside super may improve affordability, while giving you a number of options for how you pay your premiums:
- You can pay for a policy using new personal, spouse or employer contributions. The employer contributions can even include Superannuation Guarantee (SG) payments.
- If you have a Self-Managed Super Fund (SMSF) you can hold your insurance in your SMSF, using funds from your SMSF account to pay your premiums.
- It is also possible to annually rollover a premium amount from any other Australian superannuation fund to pay your superannuation premiums.