Insuring inside or outside super
When it comes to choosing whether to hold personal insurance inside or outside super, both options have pros and cons. Which one is right for you? Benefits of each Insurance inside super § Premium payments can be tax effective (although benefits may be taxable) § Premiums may be cheaper § Often require no medical checks to get automatic cover § Can help you stay covered during periods of low cash flow. Insurance outside super § Can offer more cover options § Policies are typically more flexible and customisable § Can offer higher levels of cover § Premiums don’t eat away at your final super balance. Types of insurance Many super funds offer three basic forms of personal insurance. These are life, Total and Permanent Disability (TPD) and income protection. Other types of insurance like trauma cover generally can’t be held within super. Outside super, you can mix and match types of cover. Policies can sometimes be packaged up with one pr