Are you paying for life insurance without even knowing it?

The cover you might not know you have

We’ve all been sucked in by those soppy ads that tug at the heart strings. You know the ones….What would your loved ones do if you were suddenly taken from them? Give them financial peace of mind. The ads that instantly have you feeling guilty about not being a gazillionaire, and that tempt you to sign up for a fancy life insurance policy you hope you’ll never need.

While life and disability insurance ads play on our fears, it’s understandable that you want to know your family will be looked after when you’re no longer able to.

Chances are, you might already be paying for life insurance, and not know it!

Big bucks are being paid on insurance

  • Aussies are spending more than $44 billion – yep, billion – a year in life insurance policy premiums.
  • That includes insurance against death, total and permanent disability, and income protection.

Many of us are paying without knowing it!

  • But many Aussies are paying these huge amounts of cash without even realising that they have this insurance cover.
  • How, we hear you ask?

Super hidden

  • Superannuation may seem super complicated, but it’s also full of a super large range of ‘hidden’ fees and charges.
  • Some superannuation policy holders unknowingly have life insurance policies attached to their super, and are having hefty insurance premiums deducted from their super accounts every month.
  • Because super is one of those ‘out of sight, out of mind’ things that we don’t really pay much attention to, many of us don’t realise we’re forking out all this cash.

It gets worse – there’s often double trouble

  • Many of us don’t roll our super over each time we change employers. This means you might have several separate superannuation accounts with different companies.
  • If you’re paying life insurance premiums with some – let alone all – of these, that adds up to an awful lot of cash over time.
  • That’s valuable cash that’s supposed to be yours, to retire on.
  • And you’ll only be able to claim on one, and not all, of your policies.

So what’s the answer?

Simple. Opt out.

  • Check your superannuation. If you have more than one super account, take the time to roll them all together into one account, and only pay one set of fees. It’s your money – protect it!
  • Then investigate the insurance cover you may have through your superannuation.
  • It may be valuable protection that you’re happy to pay the premiums for, and if so – great!
  • But if you’re paying for insurance cover that you don’t want or need – then cancel it, and keep your cash.