Australians Losing Hundreds Of Thousands Due To Default Insurance Cover
It’s only good news for people who love reading the fine print
Superannuation, we all love it and we all love talking about it. But what if I told your super cover might be costing you thousands of dollars?
Well if you are one of the millions of Aussies signed up to a super fund that includes a default insurance cover, then this might be the case.
63% of funds have some kind of default cover that includes life insurance plus total and permanent disability and income protection insurance. And while some people might want this sort of cover, a lot of people don’t and are completely unaware that they are signed up as part of their superannuation.
Over time these charges add up costing Australians a lot of dosh. For example, a 25-year-old worker who makes 60k a year and has a super balance of 30 grand… could retire 244 thousand bucks worse off thanks to the cost of insurance.
And according to the banking royal commission around two and a half million people have two or more accounts with insurance cover. Which isn’t great, because very few people experience death twice.
But don’t cancel your super just yet! Experts suggest you review your policy, find out what you are paying for and if you are not happy with what you see, shop around to find a super fund with the right amount of coverage for you.