Fund your life insurance through superannuation with TAL Super Life Cover
Funding your life insurance cover through your superannuation can be both affordable and convenient. Premiums can be paid for with your after-tax income straight from your the funds that have accumulated in your superannuation. This means you don't have to worry about adjusting your day to day budget to pay for your cover. TAL gives policy owners the best of both worlds by offering a comprehensive life insurance plan held inside superannuation.
If you are interested in the TAL Superannuation Life Insurance product, your financial adviser needs to submit your application. Once your application is approved, you and your employer are able to start making contributions. Plus, once your application is approved you'll also be covered by Accelerated Protection from TAL, where your life insurance is managed through the fund.
This review will explore the key benefits of this excellent plan from one of Australia's leading life insurers.
What does the policy cover?
You can obtain TAL Accelerated Protection Insurance solution through a complying super fund. This method allows you to access TAL's comprehensive life insurance plans - Life Cover, Income Protection and TPD Cover.
Some of the built-in features and benefits that you will receive from TAL Superannuation Life Insurance Plan include, but are not limited to:
- TAL Life Insurance and TPD Cover Plan Funded through superannuation
- Death benefit: Your nominated beneficiaries will receive a lump sum payment in the event of your death.
- Terminal illness benefit: You will receive an advanced payment of the amount insured on your policy if you have been diagnosed as terminally ill with only 12 months to live.
- TPD benefit:In the event that you acquired a disability that is deemed total and permanent, a lump sum amount will be paid, provided that you satisfy the disability definition that applies to your policy.
- Death buy-back option:When your TPD cover is linked to your life insurance, you have the option to repurchase the amount insured following payment of the TPD benefit.
- Advanced payment benefit: 10% of the benefit amount insured, or up to a maximum of $25,000, is payable to cover any immediate expenses from the death of the policyholder. This may include funeral costs, estate planning, legal costs or financial planning.
- Inflation protection benefit: Your cover will be automatically increased each year to keep up with the Consumer Price Index (CPI).
- Premium freeze benefit: You can choose to fix your premiums at a specific rate and your cover will be reduced accordingly.
- Guaranteed future insurability benefit: You can increase your cover at specific life events without having to provide further medical evidence.
- Self-managed super fund benefit: Only available with policy owned by a SMSF, TAL will reimburse up to $5,000 for any legal fees that are incurred.
- TAL Income Protection Insurance Plan through superannuation
- Total disability benefit: In the event that you are totally disabled, a regular monthly benefit of up to 75% of your income is payable at the end of your nominated waiting period.
- Partial disability benefit: If you are able to work at a reduced capacity while sustaining an illness or injury, you will still be entitled to a monthly benefit.
- Death benefit: Your nominated beneficiaries will receive a lump sum payment of six times the insured amount if you pass away.
- Waiver of premium benefit: Your premium payments will be waived while you are receiving total or partial disability benefit payments.
- Elective surgery benefit: You are eligible for a benefit payment if you become totally disabled as a result of a transplant, plastic, or elective surgery on the advice of a medical professional.
- Family support benefit: Monthly benefit of up to $5,000 is payable when the policyholder's family member has to cease paid work to provide care.
- Blood borne diseases benefit: provides cover for healthcare professionals, in which a benefit is payable when they have been infected with a blood borne disease, such as HIV, Hepatitis B or C.
More benefits to consider
If the idea of the benefits and tax breaks sound good, but you're worried you might miss out of some of the features you'd get with the individual products, find out more about how life insurance through super from TAL works:
- Access to TAL Accelerated Protection insurance solution:You have the option to apply for life cover plan, TPD insurance and income protection plan with TAL and manage your premium payments through your super fund.
- Choose your beneficiaries: Under the rules of the super fund with TAL, the trustee of the fund has the discretion to determine who receives your death benefit, and in what proportions. Therefore, if you want to make specific requests you can nominate legal representatives or dependents as your beneficiaries. It is important to review your nomination of beneficiaries regularly, as your situation changes. Some events that may trigger the decision to review your policy include marriage, divorce, birth of a child, increase in income or your children move out. Under superannuation law a death benefit can only be paid to your spouse (including married, de facto and same sex couples), a child of any age, a legal representative, any person who was financially dependent on you, or a person you had an interdependency relationship with. If the trustee of the fund cannot locate any of these beneficiaries, they may pay the death benefit to a non dependent person such as a parent or sibling.
- Payment of superannuation benefits: Superannuation benefits will be paid from your TAL Superannuation Life Insurance account if you are permanently incapacitated, you retire, you terminate employment after you are 60 years old, you leave Australia, or on financial hardship or compassionate grounds.
- Payment of disability benefit: If a disability benefit is payable but you don't meet the conditions of release, the benefit can be transferred to an Eligible Rollover Fund. Once a benefit has been made to an ERF you will cease to be a member of the super fund and will become a member of the AERF. Your benefits can still be protected, meaning that administration charges cannot exceed the investment earnings of the account.
- Self employed tax deductions: If you are self employed or substantially self employed, you may be eligible for a tax deduction of your personal super contributions. You can often claim a full tax deduction for your contributions, up to the concessional contribution limit which is capped at $25,000 for the 2012-13 financial year. Your employer's contributions are also tax deductible, where they are made for the purposes of providing an employee with superannuation benefits.