Money matters

Are you super protected? Superannuation isn't just for retirement. Insurance through super can provide protection today.

- EFFIE ZAHOS

Women often put the needs of others ahead of our own. Yet women can be the cement that binds families together. So it's good to know that, behind the scenes, our superannuation can offer valuable protection against life's curveballs.

The question is, how well protected are you – and at what cost to your retirement savings? Here are five things to know about insurance through super.

1. Women need personal protection

Gone are the days when men were always the main breadwinner. Women are now the chief income earner in around two out of five households. That makes insurance a must-have to protect you – and your family – if the unexpected happens.

On the plus side, women tend to live longer than men, and that can mean lower insurance premiums. Your super fund can be a source of low-cost cover, but there are strings attached.

2. Insurance through super is easy

Most super funds automatically sign members up for two types of cover:

i) Life cover or “death cover”. It provides a lump sum to your beneficiaries if you pass away prematurely, and in some cases a terminal illness payment if your life expectancy is cut short. Hopefully your family will never need it, but life cover can provide real peace of mind, especially if you're a solo parent.

ii) Total and permanent disability (TPD) cover. TPD provides a lump sum if you become so ill or injured that you can never work again. Cover can include conditions that go beyond physical injuries, such as mental health issues like severe depression that prevent you from returning to work. The definition of "permanently unable to work" can vary, so check your fund's Product Disclosure Statement (PDS).