| As a general rule, insurance can be used to meet the shortfall between your needs and your existing savings. Some people take out death cover to pay their debts and leave some money over to help their family get back on their feet. It is a good idea to review your insurance needs from time to time to make sure your cover takes into account any changes in your circumstances. If you are unsure, consult a financial adviser who can help you with your insurance planning.
As a member of MTAA Super, you benefit from low-cost insurance that provides comprehensive cover. The following are among the benefits of insuring as part of your superannuation arrangements:
» MTAA Super is able to pass on to its members the savings and other benefits it receives by negotiating a group insurance policy
» It is tax-effective. You do not pay for it with your after-tax income since premiums are deducted directly from your superannuation account.
All members of MTAA Super can apply for up to:
» $5,000,000 of total death cover
» $2,000,000 of total and permanent disability cover
» $20,000 of income protection monthly
Death-only cover
Death only cover provides an insured lump-sum benefit in the event of your death. Members under the age of 70 are eligible to apply for death-only cover.
Death plus total and permanent disability cover
Death plus TPD cover provides for an insured lump-sum benefit if you die or become totally and permanently disabled.
Income protection insurance
It is highly probable that your most important financial asset is your ability to earn an income. But, although most people insure their homes, cars and other valuables, few consider insuring their income.
Most people think they would be able to manage with assistance from family, savings, the Disability Support Pension, their employer (through sick leave), insurance (through workers compensation, TPD or sickness and accident benefits) and superannuation benefits.
There is merit in all these sources, but they might not always be reliable. The level of savings in Australian is traditionally very low. There is limited sick leave with most employers. Super benefits are generally not available until retirement age.
Income protection insurance will pay a benefit for a specified benefit period, usually monthly in arrears, if you are unable to work because of illness or injury. This can provide security in a person’s time of need.
Members of MTAA Super can apply for the following income protection cover:
» Up to 75 per cent of your salary, with a maximum benefit of $20,000 a month. You can however insure up to 85% of your pre-disability income, with 75 per cent of that income being paid directly to you (less PAYG tax) and the balance payable as superannuation contributions to your MTAA Super account.
» A benefit period of up to two or five years
» Cover in units of $250 a month, with a minimum of three units required
» Waiting periods of 30, 60 and 90 days
» Premiums based on your age and occupation (general or non-manual)
For more information or to be put in contact with a financial adviser contact MTAA Super on 1300 362 415
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