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Superannuation insurance

Check out Sunsuper's simple, easy to use glossary of all the different terms you might come across when researching superannuation. Find a clear and simple definition for anything relating to superannuation insurance, from income protection insurance to the superannuation death benefit.

 

Income protection insurance

Also known as Salary Continuance, Income Protection insurance is designed to protect you by providing an income for a time period in the event you are unable to work due to injury or sickness. It can be an important consideration for anyone who relies on an income from working for an employer on a permanent, part-time, contract or casual basis. Sunsuper offers Income Protection insurance cover to members on an opt in basis when they join. Members can apply for up to 85 per cent of their Income (75 per cent of Income plus 10% superannuation contribution) up to a maximum cover amount per month. Find out more about insurance cover options through Sunsuper.

 

Life insurance

Life Insurance is a broad term and can refer to up to four types of cover. Life cover also known as Term Life Insurance or Death cover provides a lump sum benefit to your beneficiaries if you die. Total and Permanent Disablement insurance pays your costs in the event you are unable to work again due to permanent injury or illness. Trauma cover pays your immediate costs in the event you are critically injured or ill, and can be called Critical Illness cover or Recovery insurance. Income Protection insurance insures you for lost income and pays your expenses in the event you are unable to work for a period of time due to injury or sickness. 

 

Total and permanent disability insurance

Total and Permanent Disability insurance protects you if you can’t work again in any occupation for which you are suited by training, education or experience, and provides payments to help you with rehabilitation, debts and the cost of living. Find out more about insurance cover options through Sunsuper.

 

Superannuation insurance

Many superannuation funds offer their members Death, Total and Permanent Disability insurance and Income Protection cover insurance. The premiums you pay for this cover could be lower than you’d pay for insurance cover outside of super because super funds can generally negotiate cheaper group rates. The premiums are deducted directly from your super balance. Find out more about insurance cover options through Sunsuper.

 

Superannuation death benefit

A Superannuation Death benefit is a sum paid to your beneficiaries when you die. Death benefits can be a lump sum payment made up of your superannuation balance and Life insurance cover, and/or, in the case of a reversionary beneficiary, an income stream. Superannuation Death benefits are subject to certain rules covering who receives them and the level of tax that needs to be paid.