Fund your life insurance via the Zurich Superannuation Term Life Plus
Superannuation is one of your financial products you may not think much about. The account is there, your employer makes their contributions, and you may have even organised a personal contributions scheme or a salary sacrifice. However, you don’t have to be stuck with a standard old super account, when you can roll several financial products into one, and reap the benefits.
Zurich offers a Superannuation Term Life Plus account, which takes care of your superannuation for the future, and also holds a life insurance policy to look after your family financially if you die. This means you have money in your super account working hard for you and waiting ready for all the plans you have for your retirement, plus you have a comprehensive life insurance policy to provide for your family if you don’t make it that far for any reason.
What does the policy cover?
It can help streamline and simplify your finances if you have your superannuation account and your term life insurance policy combined into one product, and you may also be eligible for tax benefits if you pay your life insurance premiums through your super account. However, you will also need to keep in mind that there can be restrictions placed on life insurance benefits which are paid from a superannuation account, and your beneficiaries may be taxed on the benefit they receive.
Therefore, the following will help you understand how the Zurich Superannuation Term Life Plus account works, and how it can benefit you:
- Death benefit: When you die your family can make a claim to your Zurich Superannuation Term Life Plus plan, and receive a lump sum benefit payout. This money can be used for funeral bills, final expenses, to pay off the mortgage or can be invested to provide an ongoing income for your family to live on after you’re gone. The minimum amount of death cover you can apply for is $50,000 and to choose the maximum cover amount you need, your financial adviser can examine your needs and situation.
- Terminal illness benefit: You don’t have to die to make a claim on your Zurich life insurance plan either, because if you are diagnosed with a terminal illness, you can receive an advance payment of your death benefit. This can help pay for medical expenses, modifications to your home or a restorative family escape.
- Advance benefit for funeral expenses: When your family make a claim for the death benefit on your Zurich life insurance, the claim can take some time to be processed. This is why Zurich includes an advance benefit payment which is paid as soon as the claim is made, and can be used to cover funeral costs which often need to be paid right away.
- Financial planning benefit: Zurich also includes a financial planning advice benefit which reimburses you or your family for the cost of any financial advice you sought after making a claim, to help manage the benefit sum.
- Buy back death benefit: If you make a claim on your Zurich life insurance plan for total and permanent disability, death cover can be reinstated so that your family still receives another benefit after you die.
- Future insurability: This means your life insurance cover can continue from year to year without you needing to take any further health tests or blood tests, or answer any questions, regardless of your circumstances changing.
- Protection from inflation: You can make sure your life insurance remains relevant regardless of when you or your family make a claim by choosing to increase your benefit amount each year. This helps keep the benefit in line with inflation, so the benefit is relevant to the costs of the day.
- Freeze your premiums: If you need to freeze your premiums for a while to help stabilise your budget, Zurich can help with this. Your premiums can be frozen and the amount you pay stays the same, while your benefit amount decreases to balance the costs.
- Eligibility to apply for cover: If you are 15 to 69 years old and are eligible to contribute to a complying super fund, you can apply for Zurich Superannuation Term Life Plus.
Additional benefits worth considering
For an added cost, your life insurance cover from Zurich can also include:
- Total and permanent disability cover: Allowing you to make a claim if you suffer an illness or injury which leaves you totally and permanently disabled, and unable to return to work. The TPD benefit from Zurich is paid as a lump sum, so you and your family can use the funds as your needs dictate at the time and into the future. To add total and permanent disability to your cover with Zurich you must be 19 to 59 years old.
- Premium waiver: If you are disabled and unable to work, the premiums of your Zurich life insurance policy can be waived so you don’t have to worry about balancing another bill.
- Accidental death cover: Can provide your family with a lump sum benefit payout if you die as the result of an accident. To add accidental death cover to your policy you must be 19 to 64 years old.
If you’re still not sure about merging your superannuation with your life insurance, Zurich can split your super and your ordinary benefits into two accounts. This means you are getting the benefits of both products, but they are provided under two separate policies.
When can't you claim?
- Death Cover: No death, terminal illness or funeral advancement benefits are payable for suicide within 13 months of cover starting, being reinstated or the sum insured being increased.
- Accidental Injury Benefit: No Accidentally Injury Benefit is payable if the accidental injury occurs as a result of war or intentional self-inflicted acts, or where a benefit is payable under TPD Cover.
- TPD Cover: No benefit is payable under Zurich TPD Cover if total and permanent disablement occurs due to an intentional self-inflicted act, attempted suicide or any other event or medical condition specifically excluded from cover on your policy schedule.
Who can take out cover?
The entry age for Zurich Superannuation Term Life Plus varies according to the covers selected:
- Death Cover is available to applicants from 15 to 69 years of age, with no maximum cover limit imposed. Cover expires on the policy anniversary after your 99th birthday.
- TPD Cover is available to applicants between 19 and 59 years of age. You can apply for up to $5 million cover and cover expires on the policy anniversary after your 99th birthday.
- If you want to add Accidental Death Cover to your policy, you will need to be between 19 and 65 years of age. You can apply for a sum insured of up to $1 million and cover expires on the policy anniversary following your 75th birthday.