Insurance through super. Is it right for you? Five things you should consider.

22 October 2026

Insurance through super. Is it right for you? Five things you should consider.

Insurance through super can provide a financial safety net if illness, injury or death changes your plans. Here are five things to consider when deciding whether insurance through super is right for you.

1. What insurance can you have through super?

Eligible AustralianSuper members can have Death, Total & Permanent Disablement (TPD) and Income Protection cover.

Death cover, also known as life insurance, can provide a payment to your beneficiaries if you die, or to you if you’re diagnosed with a terminal medical condition. TPD cover can provide a lump-sum payment if permanent illness or injury means you’re unlikely to work again. Income Protection can provide monthly payments if illness or injury temporarily stops you from working.

2. How does Income Protection through super work?

If illness or injury temporarily prevents you from working, Income Protection may pay a monthly benefit to help replace part of your income. The waiting period is how long you generally need to be unable to work before payments can begin, while the benefit period is the maximum time payments may continue for an eligible claim. The amount paid and the periods that apply depend on your cover and the policy terms.

Income Protection is designed to help if illness or injury stops you from working. It doesn’t generally cover job loss or redundancy. Income protection through super may differ from cover held outside super, including costs, features and eligibility.

3. How much does insurance through super cost?

The cost depends on the type and amount of cover you have, your age, work rating and other personal circumstances. Premiums are deducted from your super account, which reduces your retirement savings over time. Check your account or the AustralianSuper app to see what you’re paying and consider whether the cost and level of cover still suit your needs.

4. How is insurance through super different from cover outside super?

With insurance through super, premiums are generally deducted from your super balance rather than your take-home pay, and eligible members may receive a default level of cover. Cover held outside super is usually paid for from take-home income and may offer different features or flexibility. You generally can’t claim a personal tax deduction for Income Protection premiums paid from your super account. Tax treatment can vary, so consider checking current ATO guidance or speaking with a registered tax adviser.

5. Is insurance through super worth it?

It depends on your circumstances. Consider the financial support you or your family may need, the cover you already have, the policy terms and the effect of premiums on your retirement savings. A new job, home, child or financial commitment can change the amount of cover that feels right. Your work rating can also affect what you pay, so check that it matches the work you do. Reviewing your cover regularly can help you decide whether it remains suitable.

Ready for a quick insurance check-up?

1. See what you have: log in to your account or open the AustralianSuper app to view your current cover.
2. Explore what you may need: use the insurance calculator to estimate the cover that could suit you and what it may cost.
3. Keep it up to date: review your work rating, beneficiaries and cover whenever life changes.

Not sure what’s right for you? Financial advice can help you understand your options before you decide. Find out more about how you can access advice here.