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Benefits of insurance through your super

With work, mortgages to pay and children to care for, insurance can fall to the bottom of our priority lists. But when life really hits the fan, there’s nothing more important.

Many of us seek shelter from the bad times by having insurance through super – which is where 70% of Australia’s life insurance is held*.

So, what are the benefits of insurance in super?

Competitively priced
Super funds can negotiate group discounts on premiums, which can make cover
cheaper with them than going direct. At the very least, insurance through super is
competitively priced.

Easier on your cash flow
If you have insurance through super, premiums are deducted from your super
balance – not your bank account.

No forms or medicals
Some super funds offer income protection, death, and total and permanent
disablement cover, without having to complete forms or medicals when you first join.


While insurance through super has benefits, it might not meet all your needs; you can’t get trauma cover through super, for example. You should also consider the tax implications and claim payment delays that may be associated with insurance in super. And remember, paying premiums with your super will reduce your retirement savings – unless you make extra contributions to compensate.

*ASFA, 2017, The Experience of Individuals with Insurance Through Super.

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