19 May3 benefits to insurance through your super
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More than 70% of Australians with life insurance have it through their super fund (1). Find out more about the benefits of insurance through a super fund compared to other providers.
- Hassle-free insurance payments
If you have insurance cover as a member of AustralianSuper, your premiums (the cost of your cover) get paid directly from your super balance. That means you don’t have to pay for insurance from your take-home pay.
- Potentially cheaper insurance premiums
Super funds often provide cheaper insurance cover due to the number of policies they purchase. As Australia’s largest super fund, AustralianSuper works with our insurer to negotiate discounted group rates for all members who have cover through us. As an industry super fund, we don’t pay commissions to our insurance provider. These savings go to members.
- Payments direct from your super are financially savvy
Paying for insurance cover directly through your super, not out of your pocket, could mean you pay less tax on your insurance charges. You’re taxed 15% on your employer’s super contributions (or if you’re making contributions through salary sacrifice), which is lower than the marginal tax rate on most people’s take-home pay.
On the other hand, if you’re paying for insurance directly with an insurer, it’s out of your take-home pay, so you’re probably missing out on tax savings.
To read the full article please visit australiansuper.com/superannuation-articles
Sources:
1. moneysmart.gov.au -Insurance through super
Sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273.