In the past few years, life insurance premiums associated with super fund accounts have increased considerably. More Australians are shopping around for the best life insurance deal, and discovering that men sometimes get a different insurance deal to women, and as you age, your premiums jump dramatically.
Very few people realise that life insurance premiums more than double from the age of 45 to 55, and this also applies to the super funds offering the cheapest insurance deals.
Note: Many super funds are now reviewing life insurance premiums for fund members, and some super funds have reduced life insurance premiums, especially for younger members. Now is probably a good time to check what your super fund is charging you for insurance cover.
Background: Your life insurance cover (also known as death cover) is usually packaged with disability insurance, which means your super’s insurance policy also covers you if you become permanently incapacitated in specific circumstances. Disability insurance is also known as total and permanent disability (TPD) insurance. Many super funds also offer you income protection insurance; in the event that you are unable to work for a period of time due to illness or injury.