What are Superlink payments?
Superlink (also referred to as flexilink) provides you with the option to partially pay for your life insurance premiums through your super fund, and pay the remainder directly to the provider.
By using a Superlink payment structure, there are some cover options that become available that are not usually accessible when your premiums are paid only through your super fund.
Impact on Income Protection and Life Insurance benefits
With some insurers, by splitting the payments of your income protection or life insurance premiums between your super fund and outside of it, you can access certain benefits that are available only when your cover is paid entirely outside of your super fund.
For instance, with some insurers you have access to a Specified Injury Benefit. This means if you suffer from a condition or injury listed in the Product Disclosure Statement (PDS), you will receive the monthly benefit amount in advance for a specific period, regardless of your waiting period.
These differences vary greatly between insurers, so it’s always important to check the relevant PDS when deciding what option is right for you.
Impact on total and permanent disability (TPD) definitions
TPD cover provides a lump sum payment if you become permanently disabled and unlikely to work again. For clarity at the time of claim, the definition of disability is built into the policy with a couple of options for you to select from, including any occupation, own occupation and activities of daily living.
Definitions can vary between insurers, but generally speaking ‘any occupation’ means that you’re unable to return to work in any job that you’re suited to by experience, qualification or training. While ‘own occupation’ means you’re unable to return to the occupation that you were most recently employed in.
When your policy is set up through your super fund, sometimes your options are limited to ‘any occupation’, however, by having the Superlink structure you can access the ‘own occupation’ definition outside of superannuation, depending on the insurer you go with.
What about Superlink claims?
When you claim on a policy split with the Superlink structure, your claim payment may also be split. This means the tax implications still apply for the component held through your super.
For Total & Permanent Disability insurance, the policy may require you to claim under the superannuation definition of a permanent disability, before you can claim on the non-superannuation definition (or vice versa), so please ensure you read the Product Disclosure Statement.
To learn more about Superlink and life cover through super, call one of our qualified consultants on 13 54 33.