Does your insurance cover need a mid-life review?

Life in general often becomes more financially complex as we get older.

While your net income is probably higher than it was earlier in life, you’re also likely to have greater living expenses and more people relying on your income.

As well as paying off a mortgage and other debts, you could also have school expenses to cover with a host of other costs that generally come along with supporting a family.

We all like to think that we’re bulletproof, but what would happen to your family if you were severely injured or diagnosed with a serious illness that prevented you from earning income? Worse still, what would happen to them if you passed away unexpectedly?

That’s why this life stage in particular is a crucial time for you to review the insurance cover inside your superannuation to make sure it’s still appropriate.

Super funds like legalsuper offer insurance options such as Death Insurance, Total and Permanent Disablement (TPD) cover and Salary Continuance (also known as Income Protection). These can provide financial support if something unexpected happens.

The good news is that it’s usually easy to adjust your super insurance cover up or down depending on your needs.

legalsuper also offers additional insurance for life and work events, which makes it easy for members to adjust their cover should a specific event occur.

Why your insurance needs change over time

In your mid-40s, 50s and even in your early 60s, your financial commitments are often at their peak. If something unexpected happens to you, the financial impact could be substantial.

This is why many people in this age band choose higher levels of Death and TPD cover than they needed earlier in life. Salary Continuance can also be important, especially if you have limited savings or if your household depends heavily on your income.

How much cover do you really need?

There’s no single answer to this question, because everyone’s situation is different.

A useful way to think about it is to consider what level of financial support your family would need if they didn’t have your regular income stream.

Would your mortgage need to be paid off? Would your partner need income support? Would your children need help with education costs? Would you need funds for rehabilitation or long‑term care?

These questions can help you estimate the level of cover that would provide meaningful protection.

 Adjusting your cover is straightforward

One of the advantages of holding insurance inside super is flexibility. You can usually increase or decrease your cover as your life changes.

If your mortgage is nearly paid off or your children have become financially independent, you may decide to reduce your death and TPD insurance. If you’ve taken on new responsibilities or your income has increased, you may want to increase it.

Because premiums are deducted from your super balance, adjusting your cover won’t affect your regular pay. However, higher levels of cover generally mean higher premiums, so it’s important to balance protection with the impact on your retirement savings.

Salary Continuance insurance can also become particularly important in mid‑life. If you’re temporarily unable to work due to illness or injury, income protection can replace part of your salary for a period. This can help cover everyday expenses, mortgage repayments and family costs.

If you haven’t reviewed your Salary Continuance for a while, now is a good time to check whether the benefit period and waiting period still suit your needs.

A quick review can make a big difference

It’s always worthwhile checking how much you’re paying on your insurance premiums.

Your 40s to 60s are a time when the right insurance cover can make a significant difference.

You can quickly see your insurance options by logging into your online account or using our mobile app. Just select the ‘Insurance’ tab to review your current cover. You can also review how much you’ve paid for your cover by checking your transaction history.

Taking a few minutes to check your insurance cover now can help protect your future without costing you financially today. As a legalsuper member you have access to personal advice via your online account and can generate a Statement of Advice that recommends a level of Death, TPD and Salary Continuance cover based on your personal circumstances. This advice is prepared via our partner MUFGRetire360, under their AFS Licence No. 258 145, ABN 36 105 811 836.

It’s easy to adjust your cover, helping ensure you’re not paying for more than you need, while still providing the right level of protection for you and your dependants.