A life insurance policy provides financial support to the nominees of the insured at the time of occurrence of an unexpected event in his life. Almost all super funds in Australia provide for a minimum basic insurance cover for their members, wherein one may not be required to undergo a medical test. However, they often fall short to provide optimum financial protection to the mentioned nominees in the event of the death of the insured. But this basic cover may not be available to you if you join a fund as an individual, except in circumstances where you opt to go for a medical assessment.
Defining beneficiary under a life insurance policy is very important, as without it, it may be difficult to make out the person who will be given the insured sum.
All the large super funds that are provided by employers to their employees are backed by a life insurance policy, wherein the employees are covered under a group. These policies demand lower premiums as the risk gets evenly spread across a large number of people.
Life insurance policies provide peace of mind and an assurance to the insured that his nominees would not suffer any financial hardship on the account of his death. Hence, you should consider them actively when you go for the investment of your super funds.