Owen Rascovich

It's more so just information.

So consider how it applies to you.

And what I mean is don't go and change super funds or don't go and change your insurance just because I've said something.

Really think about your pre-existing conditions and all that sort of stuff.

Having said that, let's talk about the differences between insurance inside and outside the supermarket.

Okay.

So, when you have an insurance, what you're doing is you're buying protection for yourself.

And that could be protection against anything, right?

I reckon nowadays you can get insurance on almost anything.

And there are some companies that do that.

But...

What you're trying to do is you're trying to pay a very small amount to protect you from a very big hit to your finances.

And the easiest way to do that is to pay a premium.

And that's the thing that you pay out of your pocket every month and it might be or every year.

And the difference between doing that in super and doing it outside of super, so when you just pay for it, what I mean by outside of super is I'm just paying for it from my bank account versus inside super is that I don't have to pay it from my bank account.

So my super company, I tell them how much insurance I want and then they hold the insurance.

There are some differences there and you should probably make yourself familiar with it.

But when everyone signs up to a super fund and they put money in, typically they get three different types of default cover, which is just the amount that they think is appropriate for whatever person is in that fund.

So it might be by age, it could be by income, it could be by age.

Many different things.