Value of insurance

Have you ever considered the financial consequences of being unable to work for a period of time? How would you pay the bills, rent or mortgage, healthcare, car repayments or credit card?

Insurance may be the answer. Without it you'd need a significant amount of money put aside just to cover your basic day-to-day living expenses or provide for your dependents if you should pass away.

Life insurance cover is one of the best ways that you can protect yourself should something unfortunate happen, and it can be cost effective if you purchase it through your super.

GESB currently provides automatic Death, Total and Permanent Disablement (TPD) and Salary Continuance Insurance (SCI) cover to members of West State Super and GESB Super who meet eligibility criteria and are receiving employer contributions to their super.

Eligible Gold State members are automatically covered for Death and Permanent Disablement cover.

Why you may need insurance cover

Many Australians don't realise that they haven't got enough insurance until something unfortunate happens to them. A study in 2005 revealed that '80% of Australian families are leaving themselves exposed to financial hardship by not correctly calculating adequate levels of life insurance to cover their needs.'#

Insurance cover can help you protect your wealth and your family's future, by providing continuous income if you're no longer able to work. Alternatively a lump sum can be paid should you suffer a permanent disability or in the event of death.
 
Unsure how much insurance you need to cover your financial obligations and protect your loved ones? Our 'insurance calculator' allows you to calculate the amount of Death and TPD cover you might need. Visit Calculators and Tools.

Changing your cover is easy

Our insurance cover is flexible so you have the option to increase, decrease, or cancel your cover as your individual circumstances change. Just fill in an Insurance Variation form and send it back to GESB.

It's also important to check that your insurance cover is always up-to-date and that the level of cover outlined on your member statement is right for you. You can check your insurance details by registering for Member Online.

Your super is the best place for your cover

There are many benefits to paying your insurance cover through your super. You don't need to worry about finding money to pay regular premiums and there can also be some tax benefits:

• Make salary sacrifice contributions to top up your super. They're taxed at just 15%*, which is significantly lower than the top marginal tax rate. This means paying for your insurance through your super is more tax effective than paying for it from your take home pay.
• Take advantage of the Commonwealth Government's Super Co-contribution by making personal after-tax contributions into your super. If you're eligible, the Government will contribute up to $1.50 for every dollar you invest (up to $1,500), and this top-up may be enough to pay for your insurance cover.

For more information about the features and benefits of having life insurance through your super, read our Super and Insurance fact sheet 'Protecting yourself and your family' or refer to the relevant Product Information Booklet for your super scheme.

# Presentation to IFSA conference August 2005. Rice Walker Actuaries and TNS.
* Contributions to West State Super are only taxed when the benefit is paid, or rolled over to a taxed fund.