I already have lots of insurance. Why do I need insurance through my super fund

Insurance. We all have it in some form, whether it’s car insurance, life insurance, health insurance, home and contents insurance – the list goes on and on. While the insurance each of us holds may differ, we all generally recognise the importance of protecting the things that matter to us ‘in the here and now’. By contrast, superannuation is something we often take for granted until retirement approaches. From our experience, many people don’t realise that they have insurance through their super that could make a huge difference to you and your family’s wellbeing far before you reach retirement age. This blog takes you through insurance that you might have through your super fund, and the options that having it can provide you in the event that you are ill or injured.

What is super insurance?

We all know that the role of super funds is to help us put money away for our retirement. On top of this, most funds offer insurance benefits that cover temporary and permanent disability, illness and/or death. The three key types of insurance available through your super fund are

  • income protection insurance (or salary continuance benefits, it is sometimes known): this allows an insured person who is sick or injured to make a claim for benefits that are paid each month that they are unable to work. Benefits are usually calculated on your earnings before you ceased work at a rate of around 75 to 85 percent of your ‘pre-disability’ income. Benefits are then paid until you can return to work, or until the end of the benefit period which can be two years, five years or until age 60, 65 or 70
  • total and permanent disability (TPD) insurance: this allows an insured person to make a claim for a lump sum payout in the event they have an injury or illness that permanently prevents them from working in an area with their education, training or experience. A total and permanent disability can include a chronic illness or impairment, or mental illness or impairment. If you have been injured, it is not necessary that it occurred in the workplace, and
  • terminal illness or death cover: this allows an insured person to make a claim for a lump sum if you are terminally ill, or for your family to make the claim if you pass away.

Remember, insurance policies can differ a lot between super funds, including whether coverage is optional, or default, and key definitions. If you need to make a claim, we can do a free super claims check so you know exactly where you stand!

Read more here: 

What’s the difference? Income protection insurance and TPD insurance – Littles 

Depression and TPD claims – Littles 

What is a death benefit claim? – Littles

Will a super insurace claim affect my account balance?

No. Your super insurance is paid for using your hard-earned money – it’s your right to access it if you need it. However, it’s important to be aware that if your super fund becomes inactive, or the balance drops below a certain amount, you may lose your super insurance coverage. Read more here: Help! How do I protect my super if I’ve been made redundant – Littles

I was injured at work. Can I make a workers’ compensation claim AND a super claim?

Yes! A workplace illness or injury can cause significant distress. This can be made worse if you are no longer able to work because of that illness or injury, as you worry about both your future health and financial wellness. In this situation, you deserve to have all your rights and options laid out for you. In most cases, TPD benefits can be paid in addition to your worker’s compensation benefits. TPD insurance is held in your super account, and benefits are paid into your super account as a lump sum.

Most states and territories allow you to access the TPD insurance benefits out of your super without the withdrawal impacting on your workers’ compensation entitlements. However, there are some important exceptions to this, which is why it crucial to seek expert legal advice. If you’ve been injured at work, get in touch with Littles for a free super claims check.

I was injured in a road accident that wasn’t my fault. Can I make a compensation claim AND a super claim?

Yes! If you’ve been injured in a road accident, the Littles experts handling your claim can also perform a free super claims check to see if you can make a super claim as well. Road accident compensation laws differ between jurisdictions, so it’s important to seek legal advice early on.

What if I have more than one super fund?

Many of us have more than one super fund. This means that you may be able to make a claim under more than one super insurance policy. Again, different super funds offer different insurance policies; some of which may be more advantageous in one set of circumstances to another. It’s worth keeping this in mind in light of recent changes to super!

Read more here: 

Littles cheat sheet: What you need to know about recent changes to super – Littles 

If you’re starting a new job in 2021, you need to know about changes to super! – Littles

Do I need a lawyer to make a TPD claim?

It depends who you ask! Insurers say that the system is set up for people to manage their own claims – but you might have also heard the horror stories of people who’ve faced lengthy delays, invasive investigations and unfair rejections. Seeking quality legal advice will generally ensure your claim goes far more smoothly – you be the judge!

Read more here: 

My TPD claim has been rejected. What do I do next? – Littles 

Help! My TPD claim is taking too long – Littles

Don't delay- seek advice now

If you have an illness or injury that prevents you from working, you might be worrying about how you are going to pay your bills and put food on the table. Don’t put your health at further risk. You might be entitled to receive a TPD lump sum, as well as other insurance benefits. Get in touch with Littles for a free super claims check. We can help you understand what you’re entitled to, and manage the process efficiently and sensitively. Know where you stand, and get peace of mind.

Free advice and no upfront fees

Not only do we offer a FREE claims check – we handle most insurance claims on a no win, no fee basis.

Our Head of TPD and General Insurance, Rowan McDonald, is an insurance law expert. If you think you might have a claim, get in touch with Rowan and his team for high quality legal advice.

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