Risk at riskBY JAMES FERNYHOUGH, LAURA MILLAN | VOLUME 6, ISSUE 2In the wake of the group insurance crisis, super funds are one-by-one renegotiating their contracts with their life insurers. As a result, premiums are rising significantly, in ... Get articles like this delivered to your email - Sign up for the free weekly newsletter  More Articles |
Latest News
SMC questions SCA's 'mystery caller' report
The Super Members Council (SMC) has raised questions on the research methodology of the recently published Superannuation Call Centre Experience Report by Super Consumers Australia (SCA).
Prime Super, Aware Super explore potential merger
The superannuation funds have signed a non-binding memorandum of understanding (MoU) for a potential successor fund transfer (SFT) to create an approximately $254 billion fund with more than 1.4 million members.
AustralianSuper ups admin fees
The $430 billion superannuation fund is increasing its administration fees for the first time since 2022.
BUSSQ ups insurance cover, costs
BUSSQ members will see the cost of their death and TPD cover increase as the fund increases the level of default cover.
Further Reading
Cover Story
Leading the way
SHARON DAVIS
NON-EXECUTIVE DIRECTOR
FUTURE GROUP AUSTRALIA HOLDINGS PTY LTD
NON-EXECUTIVE DIRECTOR
FUTURE GROUP AUSTRALIA HOLDINGS PTY LTD
Sharon Davis has always been fascinated by the human condition; it has driven her passion for people, her career, and building a better future for the next generation and beyond. Eliza Bavin writes.
Expert Feed
Dot dismissal: Scenario analysis in a regime-changing world
Investors hardly need reminding that macro shocks, both positive and negative, are hitting the global economy with growing frequency and force.
Leading with a more holistic approach to building credit portfolios
In this one-credit era, leadership is no longer about choosing sides. It is about building the tools required to lead across the credit continuum.
Execution efficiency redefines fixed income transitions
Fixed income transition costs are increasingly driven by what happens in credit markets.
The changing face of infrastructure
Without huge investment in essential infrastructure, the world will go backwards - socially, economically, and environmentally.
Clearly price increases are not positive. However this article hasn't considered other benefits that make death and TPD insurance inside super beneficial for members: tax effective and cash flow neutral.
In regard to tax effectiveness, this is determined by the tax rates of the individual. When it comes to cash flow, those on low incomes where the tax benefit is minimal, affordability is the key issue. As such, paying premiums from superannuation is a major benefit.
Automatic acceptance is also a major benefit to the individual and society more broadly. Automatic acceptance removes one of the major hurdles for most people; completing the necessary form, conducting medicals and other associated tasks. Many people simply don't complete the process let alone those who are declined or receive exclusions.
Australian's are under insured when it comes to life insurance. The more of us insured, the better off we all are.
Yes, the benefits are reduced, however it's not just about the price you pay.