Nobody likes to dwell on the worst, especially when life is going smoothly. But this is actually the time when you should think about what plans you have in place if you were to get seriously — or even fatally — ill or injured. Thankfully, insurance can go a long way in protecting your family if the worst should happen.

Have you insured your life?

Life insurance is about taking care of the ones you leave behind. By paying a regular premium, you can help make sure that if you passed away, your loved ones would receive a payout to help with expenses, like mortgage repayments, school fees and day-to-day living costs.

Life insurance can also help you if you become terminally ill, with a payout to help cover your medical expenses and other costs.

It’s always a good idea to get life insurance when you’re healthy. Otherwise you may find you won’t be covered for a pre-existing illness, and premiums usually get more expensive as you get older.

Insurance through super — is it a good idea?

A lot of people choose to get their life insurance through super — and there are some good reasons to do so.

Firstly, life insurance through super may be more affordable. This is because super funds can buy policies in bulk and therefore get them cheaper – and pass on some of their savings to you. As long as there is money in your super account, you can be guaranteed that your premiums will be covered. This means you won’t risk having your policy cancelled because there is not enough money in your account to cover your premiums.

If your life insurance is being paid out of your super, it’s also less likely that you’ll be tempted to try and save money when times are tough by cancelling your policy. So you won’t leave your family vulnerable if you pass away suddenly or become terminally ill.

What to look out for

Before you take out insurance through super, you should check the level of cover that your super fund offers and make sure that your life insurance payout will be enough to cover the kind of expenses your family needs. Also, if you change super funds or leave your job, find out whether your insurance will be cancelled or whether you can transfer your policy to your new fund.

If you have more than one super account, make sure you’re not wasting money by having more life insurance policies with each account.

Finally, review your life insurance payments if your life situation changes — for example, if you have another child, or your relationship status changes. Otherwise it’s possible that your insurance payout may not go to the people you intend to cover.

Cover for serious illness

Another important cover you should consider is trauma insurance, which covers you if you get diagnosed with serious illness like cancer, stroke or heart attack. This insurance will give you and your family a lump cash sum to pay for medical care and takes off the financial pressure while you recover.

You can no longer get trauma insurance through your super. So it’s important to talk to your financial adviser or your insurer about setting this up.