Lost touch with your super?
Written and accurate as at: Mar 17, 2025 Current Stats & Facts
You are probably paying way too much for something you need a lot less of. If your accounting firm or financial planner previously set you up with a super product and some life and income protection insurance, it should be reviewed at least every 5 years.
In simple terms personal insurances are designed to provide money in the event of Death, Disability or Medical Trauma having a major impact on you and your financial journey through life. When we’re younger we often have big mortgages and lots of mouths to feed and very little real wealth built up in super or other investments. This is when we need higher levels of insurance. As we get older the kids grow up, the debts come down and we accumulate more wealth in super and investments. So, it follows we need less insurance.
Insurance premiums rise dramatically as you get older and get crazy when you enter your 50’s and 60’s. If you’re not reducing the sums insured the premiums go through the roof.
Financial Planners have formulas for working out the right levels of insurance for you and your current personal situation. Generally, the right amount of cover decreases as you advance through life, so we can assist with reducing your cover and premiums. This means you have more to go towards your major goals like paying off debt and increasing your super and investments for retirement.
Financial Planners have an obligation to review their client’s situation and reassess their cover as they go through life, but many don’t follow this through unfortunately. They just keep raking in the commission. If you have lost touch with your advisers, you need to sort something out. Often the premiums on your insurance are coming out of your super and you don’t realise. People are often devastated when they look at their super before retirement and realise how much lower their balance is than it should be as huge amounts have been going out in insurance premiums every year.
If you have Life Insurance, Income Protection or a super plan set up years ago and your advisers haven’t taken the time to review them, give us a call. We’ll talk you through the process and make sure you’re not paying one cent more than you need to and everything is on track for your financial future.
Don’t try and DIY it, come in and talk it over with our advice professionals.
If you think you could benefit from a discussion with a Financial Planner, give us a call on 1300 857 359 or visit www.eclipsefp.com.au There is no obligation, the first meeting is free and all fees are spelled out clearly in advance.
