You might have insurance – and not even know it!

Most super funds offer default insurances. These covers usually include both life and total and permanent disability (TPD) cover, though some also automatically give you income protection coverage as well.  ​

Pros of Default Insurance Within Super 

• Premiums can sometimes be cheaper than those paid externally, especially when you only require a small amount of cover.  

• It’s automatic, meaning you don’t have to think about setting them up. 

• They usually don’t require underwriting, meaning no health checks.  

 
Cons of Default Insurance Within Super 

• You often cannot get as much cover inside of super than you can externally.  

• Your cover can become inactive if you or your employer don’t contribute for a long period of time (generally 12-16 months) 

• Insurance premiums are deducted straight from your super, which can erode smaller balances.  

 
How do I know if I have cover? 
Insurance information is generally available on your super statement or online portal. Some super funds may require you to call them.  
 
How do I know if I need more coverage? 
Due to the nature of insurances within super, there is the possibility that you require more cover than they can offer. Or, the cover they do offer is overly expensive. In this case you’d benefit from applying for an external policy.  
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Most external life, TPD, and income protection policies can be paid through your superannuation account, which can assist with cashflow management.  
 
To find out more about insurance within super, access the ASIC website or get in touch with us on 07 4766 9688. ​

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