Risk and Insurance Protection
We provide advise on a diverse range of risk solutions across local and global markets.
Below are some of the events you may be able to choose to be covered for under your personal insurance policy.
- If you die or are diagnosed with a terminal illness: your family receives a lump-sum payment. This is called Life Insurance.
- If you’re diagnosed with a serious critical illness such as a malignant cancer or you suffer a severe heart attack: you receive a lump-sum payment. This is called Recovery Insurance.
- If you’re permanently disabled and unable to work: you receive a lump-sum payment. This is called Total Permanent Disability (TPD).
- If you’re temporarily unable to work due to illness or injury: to receive a monthly benefit of up to 75% of your salary*. This is called Income Protection.
Most Australians have some form of life insurance through their super. The default level of cover is not based on your unique current and future financial obligations. In most cases it will not be sufficient to meet your real needs.
For example the Automatic Insurance within Cashel Superannuation Fund may not be appropriate:
- The Income Protection Insurances will not be appropriate where your monthly salary is in excess of $13,333.00. As the automatic insurance only covers you up to the lesser of $10,000 per month, or 75% of your salary.
- The Death Cover will not be appropriate for you where your combined debt’s, future costs of educating your children, costs of supporting your partner and costs of your burial exceed the limits set by your age. The limits depending on your age are set between $20,000 and $300,000
- The Total and Permanent Disablement Benefits Cover will not be appropriate where your combined debt’s, future costs of educating your children, costs of supporting your partner and the costs of supporting yourself medically for the remainder of your life exceed the limits set by your age. These limits depending on your age are set between $10,000 and $300,000
If your insurance needs are in excess of this, it is best that you talk to a Cashel House Advisor to obtain appropriate insurances and stop paying for insurances that don’t cover your needs.
You can increase and decrease your personal insurance cover at any time. Generally this will done at annual renewal points, however if you need an increase during the annual term you should contact a Cashel House Adviser. It is important that insurance is reviewed annually, if your wealth is increasing, your liabilities reduce as your children are progressing through school, you life insurance limits will also reduce. As such you won’t need to pay for the expense of some insurances.
Generally Life, TPD and Income Protection insurance held within your super fund will be a tax deductible expense. However it is often more tax effective to hold Income Protection insurance in your own personal name as it will be tax deductible against your personal income (and at your marginal tax rate, which is likely to be higher than the superannuation fund tax rate of 15%). Life and TPD insurance held directly in your own name will not be tax deductible, hence it is best to hold and be paid for for through your super fund.
You should contact your tax adviser or the Australian Tax for more information and advice on your particular situation.
Indexation is a way to help future-proof your insurance payment against the effect of inflation. Every year, as the cost of goods and services increase, the amount of cover will increase by the Consumer Price Index (CPI), capped at (typically) 3% for Income Protection and (typically) 5% for all others. This will help to ensure that your insurance cover has not been eroded by the effects of inflation. Your premiums will also rise in accordance with any increase in cover.
Yes, you can cancel your policy. To cancel your policy, you can speak to your Cashel House Adviser. We understand your circumstances may change, and we welcome a conversation about your needs, especially where it enables you to save money and add it to your superannuation and investment account.
Your Cashel House Advisor will work with you or your family to complete and lodge the claim forms. A Claims Manager will contact you to discuss your claim and answer any questions you have. Cashel House will be involved in this process each step of the away to negotiate and assist with obtaining the best outcome.
If you do not make a binding beneficiary nomination , the super trustee will decide who gets your benefits when you die. Usually benefits are paid to dependents, after taking your wishes into consideration. Please note that your Will does not govern what happens to your super fund unless you have a nomination and you elected your Legal Beneficial Representative using the Binding Nomination Form.
Please refer to Estate Planning and Cashel Super Frequently Asked Questions.