There are both advantages and disadvantages to consider when deciding whether to secure your insurance through your super fund. Here's a breakdown to help you weigh the options:

Pros:

• Convenience: Premiums automatically deducted from your super fund, streamlining your financial management.

• Tax benefits: Premiums paid by Super fund are normally tax deductible, which will reduce your tax.

• Help cashflow: Premiums are paid by your super fund instead of your personal bank account.

Cons:

• Limited coverage options: Super funds might offer a narrower range of coverage options compared to standalone insurance companies.

• Less flexibility: Coverage terms and conditions are often predetermined, limiting your ability to customize your plan.

• Locked-in funds: Insurance premiums reduce your super balance, potentially impacting your retirement savings.

• Coverage may end: If you change super funds, leave the workforce, or your super account becomes inactive, your insurance might cease.

• Taxation of proceeds: Though the death benefit paid to your super fund is generally tax-free, payouts to beneficiaries might be subject to taxation depending on their relationship to you and the type of benefit.

Additional factors to consider:

• Your individual needs: Assess your desired level of coverage, budget, and preferred level of flexibility.

• Compare options: Explore both super fund and standalone insurance options to find the best value and coverage fit.

• Seek professional advice: Consult a financial advisor to understand the implications of each option on your overall financial plan and retirement goals.

Remember, the decision of whether to use your super fund for insurance depends on your unique circumstances and priorities. Carefully weigh the pros and cons, compare options, and seek professional guidance to make an informed choice that aligns with your long-term financial well-being.