With superannuation now being a compulsory part of life, many people soon have significant amounts in their super and its growing at 9.5% per year - the minimum compulsory amount all employers are required to withhold from your income and deposit into your super account, for retirement.
In reality, if you passed away today, the value of your super benefit can be significantly higher because of the ‘hidden’ life insurance component.
Nothing starts a heated conversation between mates at a BBQ quicker than a question about superannuation and whether you should be allowed to get access to it before you retire.
The government's stated purpose behind our national compulsory super savings plan is to provide people income in retirement to substitute (or supplement) the Age Pension. This is known as the sole purpose test.
This is especially important if your life insurance is owned by your super fund because there are additional rules you need to understand. If you don't, then you'll leave a whole lot of unnecessary pain and problems for your survivors.