Why Insurance in Your Super Matters in Your 30s | Tips & Insights
Why is insurance so important in your thirties?
Your 30s are a pivotal time for financial planning. At this stage, you likely have growing responsibilities such as mortgages, young families, or career shifts. Making sure your insurance within your super aligns with these life changes provides essential protection for you and your dependants, helping to safeguard your lifestyle against unexpected challenges.
Benefits of insurance through your super:
Premiums are generally more affordable
As your super fund purchases insurance policies in bulk, it may be able to provide coverage at a lower cost than if you were to purchase it directly from the insurer. You can calculate your insurance fees here.
You don’t have to budget for it from your take home pay
Premiums for your cover are automatically taken from your superannuation contributions, meaning you don’t have to budget to pay for it from your take-home pay.
You generally don’t need to provide medical history
In general, default group life insurance is available without knowledge of your medical history, which makes it appealing for many people. However, this also means the policy may make broad assumptions about individual needs and it may not fit your particular circumstances.
How much insurance cover do I need? Key factors to consider:
Your salary
Insurance replaces a portion of your annual income. So, knowing what income you have coming in is essential.
Your other assets
Knowing what other money and investments you have, including savings, super, property and shares, may reduce how much insurance you need.
Your debts and other loans
Likewise, knowing where your money is going and the obligations you’ll need to meet will help ensure everything is covered if you’re unable to work.
Do you have a mortgage?
One of the biggest debts most people have is a home mortgage. How much you owe will affect how much insurance you need.
Do you have children?
Having dependent children means additional responsibilities if something unexpected happens. Bills and commitments are ongoing regardless of your personal situation, so making provision for the worst-case scenario is a practical and sensible approach.
You may want to find out the answers to these questions from your super fund:
- What is my current level of coverage?
- What are the restrictions and exclusions of the cover?
- How does my coverage change as I age or switch jobs?
Practical tips for optimising your insurance in your 30s
Adjust coverage to your lifestyle
Update your insurance after major life changes like marriage, a higher salary, buying a home, or having children.
Avoid common mistakes
Don’t overestimate or underestimate your needs. Check policy exclusions and limitations to avoid claim issues.
In your 30s, having the right insurance in your super is essential for protecting your financial future and loved ones. By reviewing your current coverage, understanding your policy details, and updating your insurance after major life changes, you ensure your plan matches your lifestyle.
Additionally, a death benefit nomination ensures your super is distributed according to your wishes, providing certainty and peace of mind.
