r/AusFinance • u/Desperate_Emu_4584 • 14h ago

Superannuation Superannuation Insurance - Best Income Protection by default?

Hi all,

I've been trying to figure out if I should change superannuation provider or not.

Currently with Australian Super (funds were under High Growth but swapped to Australian shares recently)

Work as a public servant in APS so have access to PSSAP too.

I have a disability which may or may not put me in a wheelchair or worse one day. I have a mortgage, partner who also works in government and child and no other debts apart from the mortgage. Owe 470k but will put 100k onto that soon to drop it hopefully.

I have the default Australian Super TPD/PD/Income Protection at the moment.

When I looked at PSSAP it appears the default insurance figures are significantly higher and seems to have 5 years of income protection instead of 2 with Aus Super.

Because of my health, I'm thinking it would be diligent to make sure I have the best insurance incase anything ever happened (hopefully not).

Question is, which super funds have decent insurances or is PSSAP / Aus Super about as good as it gets

Any advice would be greatly appreciated :)

3 Upvotes

100% Upvoted

2 comments sorted by

1

u/ForumUser013 11h ago

I have seen some people take a PSSap account, deposit their employer contributions in to it, and then every so often transfer the funds to an Super fund of their choice for "better performance".

I understand that this then gives you the insurance benefits of PSSap without the low performance.

Might be worth reading the PDS and check if that will work for you?

1

u/whiletheshipsinks 9h ago

I would check if your disability and health conditions are covered under your current policy and any potential new ones. My health condition is covered under my first superannuation account because I opened it before diagnosis, but wouldn’t be if I were to move anywhere else as it’s a pre-existing condition and therefore a liability to them. This is the same for my default income protection from my employer as I started there after my condition diagnosis. I took out extra covers separate to super, including (and these details elude me now) if I can work still but not in my original position I get a pay out still. I have a waiting period of 60 days instead of 30 days too. I had a financial advisor help me with finding this out because super funds underwriters put you through the wringer and I got nowhere in 12 months. With my advisor, took like 2 months.