Five steps to getting your insurance organised
Five steps to getting your insurance organised
1. Run the numbers with your super fund
The best way to check what you already have and don’t have, is to log into your online account or call your super fund. Your super annual statement and Product Disclosure Statement (PDS) may have information on the type and amount of cover you have, when it will pay out and how much your monthly premiums are. If you have more than one super fund, get onto this pronto. You might be paying double, triple of more than you need to on insurance fees.
If you haven’t got insurance, ask your super fund it they have an online calculator to help you work out what your premiums would be.
2. Explore your other options
Once you’ve got a good handle on what you can get through your super fund, see how the insurance cover and fees stack up by going direct to insurance companies. Or you can obviously skip this step if you’ve already decided to opt for insurance through your super fund.
3. Weigh up inside vs outside super
If your priority is to take out insurance cover with no impact to your cash flow, insurance through your super fund might be the way to go. But if you’re looking to get the best possible cover for you, it could be worth considering if the insurance options through super are going to work for you. Cover in super has to align with super laws, whilst cover outside can offer a wider range of conditions under which the policy will pay out.
4. Choose your insurance
Now you’ve got the facts, it’s time to decide what insurance cover is right for you. In most cases the application process is straightforward. Unless you have a certain type of pre-existing condition or are looking for cover that’s above $1,000,000, you may not need to do a blood test or medical. It’s likely you’ll just have to fill in a form and tell them about your current state of health. Make sure you remember to tell them everything – your cover won’t be valid if the insurance company find out about a pre-existing condition you haven’t declared.
5. Commit to an annual review
It’s a good idea to review insurance cover every year and particularly when your circumstances change. You’ll want to make sure the numbers still stack up.
Like most things, the more you put in, the more you get out. Take the time to explore your options and understand what you’re getting for your money. Your future self will thank you for it.
Source: IOOF