Did you know that life insurance inside super is not portable

Unlike health insurance where you can move it around, when you close one super fund and open a new one, you need to re-apply for insurance cover.

And if your health has deteriorated between setting up your first superfund and moving to the next one, you may not actually be able to be covered.

For example, set up one superfund, young and healthy.  You get cancer and you decide to change superfunds.  If you die of cancer, the chances are that you will not be covered.  And all your insurance premiums have been wasted.  You would need to die for instance of a car accident instead.

And right now the superannuation and insurance industries have no desire to change.  Why?

Super funds love it because this forces people to stay in their poorly performing superfund because they can’t afford to risk losing their life insurance.   And the insurance industry loves it, because they have a reason not to pay a claim should you die.

So if you are ill, I strongly suggest you clarify the insurance situation before you change superfunds.  Or just leave enough in the old fund to cover your annual insurance premiums.

If you want more tips and ideas of how to improve the health of your wealth and get off the treadmill of working till you drop, why not join my meetup group and get notice of my upcoming live and free events.  Simply click below.

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Do you and your family a favour and start taking steps so you can improve the health of Your Wealth and get off the treadmill of working till you drop.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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