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Beware of little expenses. A small leak will sink a great ship. – Benjamin Franklin

How much do you know about the default Life Insurance Policy held within your super? Did you know that insurance premiums could be a vital leak in your retirement savings?

We cannot deny that Life insurance is an effective risk management tool, however many superannuation members are not necessarily getting value for money under their current structure, especially for the ones with low superannuation balances and/or multiple superannuation accounts. These insurance premiums could be eroding superannuation savings or you could be paying for something that your loved ones potentially cannot claim.

We are increasingly getting enquiries about the structure of life insurance policies inside superannuation accounts and unfortunately we have seen that many of them have “wasted” quite a bit of money on policies that are not required or cannot be claimed.

Thankfully the life insurance industry is currently under greater scrutiny and some key finding during the ‘Inquiry into the life insurance industry’ maybe the wakeup call that the industry needed.

The Minister of Revenue and Financial Services Kelly O’Dwyer made some relevant comments at the Financial Services Council (FSC) Life Insurance Conference in Sydney on 21 March 2018.

To read The Minister of Revenue and Financial Services Kelly O’Dwyer full script, please click here.

Make sure you review your insurance regularly by contacting your superannuation adviser or your financial planner or come and see our resident director and financial adviser, Magda Betlem, to review your life insurance structure and needs.