3INSURANCE

There are many different types of insurance within your superannuation fund including coverage for death, total and permanent disability (TPD), and income protection.

Usually your super fund will provide you with death and TPD.

You can also increase, decrease or cancel your default insurance.

But be warned, from July 1 superannuation funds can cancel insurance on accounts that have not received contributions for at least 16 months.

Your fund should contact you if your insurance is about to come to an end.

Intrust Super’s chief executive officer, Brendan O’farrell, said while insurance can be an afterthought it’s vital when you need it to make a claim.

“Ensure your insurance benefit won’t leave you short to cover debt liabilities, future living expenses, children’s education, medical bills, modifications to lifestyle resulting from injury, sickness or death,” he said.

“When your lifestyle changes, such as getting married or having a child, your insurance needs may change.

“Take the time to review and, if necessary, modify your amount of cover to meet your current personal situation.”

And he said investment fees usually cost around 0.8 per cent of the member’s account balance.

Dr Fahy urged members to use the Australian Securities and Investments Commission’s Moneysmart superannuation calculator to see the impact that fees have on their retirement balance.

From July 1, superannuation funds have also been banned from charging customers exit fees when they switch from one fund to another.

FUNDS