A recent report by the Insurance in Superannuation Working Group (ISWG) has illustrated that many superannuation balances are being rapidly eroded by expensive and unnecessary insurance policies.

With the average Australian having multiple superannuation accounts, and many coming with life insurance as an automatic feature, it’s no wonder that many Australians are paying for cover they don’t necessarily need. This highlights two key issues for Australians:

  • Consolidation: It’s important to, where appropriate, consolidate your superannuation funds into one that matches your needs and circumstances.
  • Review Your Insurance: Your super fund trustee is not going to advise you on how much cover you should have in place, so it’s important that you review this on a regular basis to ensure you have an appropriate level of cover in place.

Another important to note when it comes to insurance within superannuation is income protection policies. An income protection policy allows you to insure a percentage of your income, typically up to 75%, which would be paid out in the event that you are disabled and unable to work. Normally, you wouldn’t be able to claim on more than one income protection policy, because it would exceed 100% of your income, so you could very well be paying premiums for no benefit whatsoever.

Finally, many insurance policies held inside superannuation by Australian expatriates may in fact not be providing you with any cover at all. This is typically disclosed in the Product Disclosure Statement (PDS), although not often well understood by most people. We conduct regular reviews for Australian expats to ensure that their insurance is actually providing them with the benefits that they require.

Remember, paying for insurance premiums that provide you with no benefit or cover are only going to make the insurance company wealthier while your superannuation balance suffers.

If you do have insurance inside your super fund in place and would like to arrange a complimentary review, feel free to contact us by clicking here or call us directly on +65 8282 5702.

 

To your financial success!


Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3

Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.

To learn more about how we may be able to help you, please contact us:

✆        +65 8282 5702
✉        info@australianexpatriategroup.com
☜        http://australianexpatriategroup.com

To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation

General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.

*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you. We expressly disclaim all and any liability to any person or organisation, in respect of anything, and of the consequences of anything done or omitted to be done by any such person in reliance, whether whole or in part, upon the whole or any part of the contents of this.

 

 

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