THE BENEFITS OF INSURANCE IN SUPER
Life Insurance through your Superannuation Account
BUSSQ's insurance cover not only covers you in a general sense, but it is also designed for the building, construction, and civil industries as well, which means BUSSQ covers occupations that may not be covered by other insurers. Our flexible insurance options include fixed and unitised Death and Total and Permanent Disablement (TPD) cover and Income Protection cover. We understand the working arrangements that are common in the industry and all insurance options are available for casuals and contractors as well if they meet certain minimum hour conditions.
Generally, eligible members* who are aged 21 and over will receive four units of Death and TPD cover on joining BUSSQ, subject to meeting certain conditions. Eligible members* who are under 21 years receive the Budget Under 21 Cover, unless another level of cover is specifically chosen. Fixed cover, up to the default cover level dollar limits for Death and TPD, is also available if specifically nominated on your application form. Both BUSSQ MySuper and Premium Choice members can apply for additional cover to suit their needs.
The benefits of insurance though your superannuation account include:
Your insurance premiums are automatically deducted from your super account each month instead of your take-home pay, which may help your budget and cash flow.
Affordable insurance cover
BUSSQ is able to negotiate affordable life insurance premiums for members, because of the size of its membership base. If you obtain insurance outside of super, you may be paying higher premiums.
Tax effective premiums
As employer Superannuation Guarantee contributions made to your super account are taxed at 15%, it will be more tax-effective to pay premiums from your super account than from your take home pay, if your take home pay is taxed at a higher, marginal rate. Talk to your accountant or financial adviser about your situation.
Cover without medical examinations
BUSSQ does not require you to have a medical examination prior to obtaining standard insurance cover.
As long as your BUSSQ registered employer is paying your superannuation contributions on time, and you don’t opt out of cover, you will be automatically covered if you work in a manual occupation or advise us that you wish to have insurance cover with BUSSQ.
BUSSQ provides access to Total and Permanent Disability Cover and Total and Temporary Disability Cover automatically, as long as you meet the criteria for Standard Cover.
Often if this type of cover is purchased outside superannuation, your occupation and /or your medical history may increase your premiums. BUSSQ’s Standard Insurance cover is generally provided without these additional costs.
Costs of insurance through super
BUSSQ receives a tax deduction for insurance costs and passes the benefit of this tax deduction on to insured members in the form of reduced premiums.
The premium tables below show both the reduced insurance premium cost you pay, and the gross premium cost paid by BUSSQ to the insurer.
* The cost deducted from your account is 85% of the cost paid to the insurer (rounding may apply to this calculation).
For the full range of cover available and costs, please refer to the Insurance Handbook.
Weighing up the benefits and costs
While there are benefits from having insurance through your super, paying premiums from your super account will reduce your retirement savings.
You can view your current level of insurance, and the cost, by accessing BUSSQ’s secure online site MemberOnline.
We encourage you to obtain financial advice if you are unsure about your insurance cover or options, and what’s right for you.
BUSSQ members have access to personal financial advice on insurance at no extra cost^. To speak to one of our team call us on 1800 692 877.
^Personal advice is limited to BUSSQ products and is advice on insurance, investment choice, contributions and retirement. This advice is provided by Link Advice Pty Ltd (ABN 36 105 811 836 AFSL 258145).