Firstly, how do I know if I even have insurance?
It’s important to know that not everybody automatically gets insurance through their super fund, and in some instances, a member might need to have opted in to receive it. So, it may be a good time to check if you have insurance with Rest in the first place.
Why might this be the case?
Before April 2020, if you started working for a new employer, insurance was generally provided automatically when your employer contributed to your new super account.
Now, due to legislation changes, super funds cannot automatically offer any insurance cover to new members until they are aged 25 or older, have a super account balance of $6,000 or more, and receive an employer contribution. New members who are under 25 or have a balance less than $6,000 can choose to opt in for insurance cover if they wish1.
Additionally, for existing super members of all ages who were insured prior to 1 April 2020, the legislation changes meant their insurance would be cancelled if they had a super balance below $6,000, and did not increase the balance to at least $6,000 from 1 November 2019 to 31 March 2020, unless they opted to keep their cover before 1 April 2020.
While it all might sound a little complicated, what it does mean is that you might not have automatically received insurance cover. To check if you have insurance with Rest, you can log in to your account through MemberAccess (click on the insurance tab), or through the Rest app.
Okay, so when should I review my insurance?
There are key milestones through life that might trigger you to take stock and check your insurance cover. These milestones usually indicate that your financial needs have changed, which is why you might need to adjust your insurance cover.
Here are some of the milestones to consider:
When you’re starting out in the workforce
While many of us think we’re bullet proof in the younger years, the sad reality is things can happen. If you were injured and unable to work for a while, Income Protection cover can be critical in helping to pay the bills. The amount you receive will depend on your level of cover and take into account any other income you are receiving at the same time.
If your claim is successful2, Income Protection can provide you with a proportion of your monthly income if you experience injury or illness that makes it difficult or impossible for you to work for a period of time. This will mean you’ll have the financial support to continue to pay bills and support your lifestyle.
Getting married
Tying the knot is generally a good time to check in on your collective finances as you may now rely on each other financially. Depending on your joint expenses like a mortgage, or other bills, you want to make sure your insurance cover will support you both if something was to happen.
Starting a family
Starting a family is such a special time in anyone’s life. However, you now have a child who is financially and physically dependent on you.
Life insurance is particularly important at this stage as it can help protect your family financially if one of you were no longer around.
Downsizing
Once the kids have flown the nest, or you’ve decided to look at a better work life balance, you might want to consider downsizing your home and other expenses. This is also a good time to check your insurance cover, as you may no longer need as much insurance coverage as you previously had.