JDFP - Diversity by Design

Income Cover inside Super

Income Protection Insurance is an insurance that provides you with a regular benefit payment (usually up to 75% of your income on a monthly basis), should you suffer a serious illness or injury that prevents you from being able to work.

Income Protection policy held inside superannuation can offer substancial cash flow savings, however it needs to moderated well as this type of Income Protection polices are often of a lower grade covering less in features and benefits, and restricted terms.

As in the case of most investment and financial vehicles, there are certain advantages and disadvantages to taking out insurance through superannuation depending on the type and level of cover you need, the insurance provider and your financial and superannuation position. JDFP can explain the ins and outs of insurance through superannuation.


Please note, the policy issued to you through your superannuation fund is owned by the trustee of the super fund which in turn means any payouts on claims will be made directly to the super fund, and therefore you will also need to satisfy the exit requirements from superannuation, and different taxation treatment may apply.