One of the many benefits of superannuation is the insurance offerings it includes, the peak body for superannuation said today.
The Association of Superannuation Funds of Australia (ASFA) said a new survey by Slater & Gordon highlighted the existence of total and permanent disability (TPD) insurance which was often included as part of a default superannuation account.
The survey showed many Australians don't realise they have TPD insurance in super and therefore don't claim when they are entitled to.
"TPD insurance provides a financial safety net if you become seriously ill or permanently disabled and are no longer able to work," said ASFA chief executive Pauline Vamos.
"This is an important offering of superannuation to protect you and your family and the cost of the insurance for many people is often much cheaper in super because of the funds' buying power.
"TPD insurance is designed to help cover the costs of rehabilitation as well as support the future cost of living," Ms Vamos said.
"The industry welcomes the survey report and anticipates the new shorter disclosure regime will enable greater engagement by superannuation fund members.
"I would recommend people check they have TPD insurance as part of their superannuation, what the definition of TPD is and how much they are covered for."
Usually TPD is defined as either:
- When you can no longer work in your usual occupation; or
- When you can no longer work in any occupation.
More information on insurance in super is available on Super Guru.
For media inquiries, please contact:
Pauline Vamos, CEO, 0433 169 342
Rebecca Glenn, GM Marketing and Communications, 0416 170 439
Megan McDougall, Media and Communications Coordinator, (02) 8079 0849
About ASFA - the voice of super
The Association of Superannuation Funds of Australia is the peak industry body for superannuation and retirement policy and research. ASFA is the only organisation that represents all types of superannuation funds (retail, industry, corporate and public sector) and associated service providers. ASFA members manage or advise on the bulk of the $1.3 trillion in superannuation assets as at September 2011. Its members represent over 90 per cent of the approximately 12 million Australians with superannuation.