Being under-insured could cost you more than you think. You might save a few dollars a month by not covering yourself, but if something happened, you could find yourself in a difficult and expensive situation, which a small amount of money up-front could have prevented. Your family might not have the money to pay for the expense of your illness or death.
MTAA Super offers its members a default level of insurance cover at a minimum. Three units of death plus total and permanent disability (TPD) cover is the default level of cover for employer-sponsored members. If you are a personal member, for example if you work for yourself or are a contractor, your default cover will be three units of death-only cover.
You can apply for affordable increases to your cover, with three types of insurance to choose from.
Death only cover
Death-only cover offers a lump-sum benefit. Many people apply for this cover to make sure their family can pay funeral expenses, pay other bills (possibly the mortgage) and have money to live on after you have gone.
Death and total and permanent disability cover
Death and total and permanent disability (TPD) cover offers a lump-sum benefit if you become totally and permanently disabled (as defined by a set of criteria set by the insurer) or if you die. If the insurer agrees that you have become terminally ill, you will receive the equivalent of your TPD cover.
Like death-only cover, this sum can be useful for paying bills, not only the mortgage but also your medical bills, childcare or other expenses if you became disabled or terminally ill.
Income protection cover
Income protection cover provides a monthly payment, based on how many units of cover you have and your salary. So if you became injured or seriously ill, you would receive an income while you recover.
Unlike the other two insurance covers, income protection is useful for situations in which you’re injured, but not seriously enough to cause your death or total and permanent disablement. This is the insurance that helps you by paying a portion of your pre-illness or pre-accident income for a limited period.
Matching your cover
If you currently have insurance cover with another fund, you can apply to match this cover with MTAA Super. It’s easy to apply, although we recommend that you do not cancel your existing cover until you have received written notification that MTAA Super has accepted your new cover. To apply to have your existing insurance cover matched by MTAA Super, complete the ‘Matching insurance cover’ form which can be found on the MTAA Super website, www.mtaasuper.com.au.
For more information about insurance, the cost, the types of cover and the amount you can apply for contact MTAA Super on 1300 362 415 or refer to the website, www.mtaasuper.com.au.
|
