The three types of insurance cover available through your super fund are designed to complement each other, depending on the nature of your illness or injury. These are:
- Life – this pays a lump sum to your beneficiaries in the event of your death or diagnosis of terminal illness.
- Total and permanent disability (TPD) – pays a lump sum if you become seriously, permanently disabled and are unable to work again.
- Income protection – also known as salary continuance insurance, provides regular payments (usually a percentage of your normal salary) for a specified period if you are unable to work due to temporary illness or disability.
Some people think they don’t need their own insurance cover at all because workers’ compensation (WorkCover or WorkSafe), Medicare or private health insurance will look after them. That simply isn’t the case: