Does your super fund need a COVID-19 health check?
Through my recent research I have found that at least nine underlying group insurance policies within common superannuation funds have exclusions on their insurance benefits for pandemic illness events i.e. COVID-19. This basically means – the insurance company will not pay you (or your family) a claim benefit if you directly or indirectly contract COVID -19, even if it results in you meeting the broad policy definitions of a claim i.e. Death as a result of COVID-19.
This comes from a mixture of retail, employer and industry funds, but the underlying group insurance policy has made that determination for all of its members.
One of the more widely used cliché rationales for having insurance cover is ‘peace of mind’ – knowing that if a disaster occurs to you or your family, you will be financially stable.
What you need to do?
Contact your super fund provider and ask them to transfer you to the group insurance specialist team to provide you a written response confirming there is no ‘Pandemic Illness Exclusion’ drafted into the Policy Document / Product Disclosure statement. There can be a definition within the insurance guide/product disclosure statement/policy document that excludes benefits paid for pandemic illness events.
If you find the answer is yes, there is no need to panic – speak to your financial adviser about sourcing an appropriate alternative insurance cover which will not have these exclusions.
