Benefits of insurance
Weighing up the benefits
Holding insurance through super and with BUSSQ has a number of benefits but there are also some things you should consider before taking up insurance cover.
Benefits
Convenience
Your BUSSQ 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.
Can be cheaper
Premiums may be lower for insurance in super as funds may negotiate insurance cover in bulk for members. 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 can 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 providing health information
On joining, BUSSQ does not require you to provide any health information prior to providing automatic Default Death and TPD insurance cover.#
Total and Permanent Disability (TPD) cover
BUSSQ provides access to TPD cover automatically as part of Default cover, as long as you meet the eligibility criteria.
How much insurance do you need?
How much cover you need changes and it’s important to review your insurance at different stages of life to make sure it still suits your needs.
Our Insurance needs calculator can help you get your head around how much cover you might need.
Get advice
Getting financial advice can help you understand your super and finances, plan for retirement and much more.
BUSSQ offers different types of advice and can help you get your head around your super.^
Considerations
Cover can stop or change
Your cover may stop if your balance isn’t sufficient to cover premiums or if your account becomes inactive. Your cover also stops when you reach certain age limits for example Default and Unitised TPD cover stops when you reach age 65. See our Insurance Handbook for more information on when cover stops.
Premiums reduce your retirement savings
Insurance premiums are deducted from your super account and will reduce your super balance. While insurance can provide valuable financial protection any reduction in your balance can also reduce the amount available to earn investment returns over time.
Cover provided automatically may not be right for you
The Default Death and TPD cover we provide upon joining may not be the right for your needs and circumstances. Our insurance calculator can help you work out how much cover you might need to protect you and your loved ones.
Insurance with BUSSQ
Our flexible insurance options include Death, Total and Permanent Disablement (TPD) and Income Protection cover.#
We understand the working arrangements that are common in the industry and we have options available for casuals and contractors.
Generally, eligible members#:
- who are aged 21 and over will receive Default Death and TPD cover on joining BUSSQ (subject to meeting certain conditions).
- who are under 21 years receive the Budget Under 21 Cover, unless another level of cover is specifically chosen.
