Life doesn't always go according to plan
Having insurance through your super1 can help provide peace of mind, acting as a safety net if the unexpected happens.
If you're not sure you want or need insurance cover, consider getting advice to help determine what cover you need and how much (if any) is right for you.
Basic cover starts automatically at 25 when you meet eligibility criteria but you can apply for it earlier.
For detailed information, download the Insurance in your super guide.
How to work out if you need cover
What are your insurance needs?
How much does insurance cost?
How do I manage it?
What if I’m under 25?
You can apply for cover any time after you turn 15 – there's no need to wait until you turn 25.
For most members, basic cover will start automatically when you turn 25, your super balance has reached $6,000 and you’re receiving employer super contributions after you meet both age and balance requirements. The reason it starts later is to prevent insurance costs from eating into your super if you’re just starting out in the workforce, working part time, or studying for example.
For more details around eligibility, see the Insurance Guide.
What types of insurance cover can I get?
Do you really need insurance cover?
Below are some examples of when and why you might need insurance cover.
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You rely on your income to pay living expenses such as rent, bills and food
Jacob has finished his hairdressing apprenticeship. He's landed a full-time hairdressing job and moved out of home into a share house. He’s loving his new independence so he wants to apply for Income Protection and TPD cover just in case he gets sick or something happens to him and he can’t work. -
You have debts such as a mortgage, loans, credit card or car payments
Raj is single and has just bought his own apartment. He manages his finances carefully every month to make his mortgage and credit card payments. He wants Income Protection and TPD cover so he can continue making his payments in case he can’t work due to an accident or ill health. -
You need to provide for children or anyone else you support financially
Charlie has a two-year-old daughter and works part time in retail. She wants to make sure her wife and daughter have financial support if she dies or can’t work because of illness or injury, so she wants Death, TPD and Income Protection cover. -
You have a job where there's a higher chance of injury than normal
Sarah got her first full time job in construction last year. She lives with her mum who’s on a Disability Support Pension, so she pays fortnightly board and contributes to the monthly bills. Sarah’s thinking about taking out Death, TPD and Income Protection cover. She wants peace of mind that if anything happens to her, she can either leave a death benefit to her mum or, if she’s injured, have enough to pay the bills while she recovers. -
You play sports competitively or as a hobby
Mario loves to hit the slopes on weekends during winter. A couple of his snowboarding mates have had bad injuries that forced them to take time off work for a number of weeks. Mario wants to apply for Income Protection and TPD cover just in case he gets seriously injured and can’t work his removalist job. -
You're self-employed or employed on a contract
Alex rents an apartment on their own. They’ve recently left their full-time job to start their own business working as a freelance graphic designer. They’re considering applying for TPD cover and Income Protection in case they get sick or seriously injured and they’re unable to work.
Things to consider
When thinking about applying for insurance through your super, you should keep in mind:
- Insurance costs are deducted from your super account and reduce your retirement savings. Think about the impact of insurance costs on your retirement savings when working out what’s right for you.
- Your insurance cover will stop if your account becomes inactive and you haven’t made an election to keep your cover. Your super account becomes inactive when you haven't received any type of contribution or rollover into your super account for 16 continuous months.
- There are a number of other events which can cause your insurance cover to stop, such as not having enough money to pay for your insurance costs.
- If you have multiple super accounts with different funds, consider consolidating them to reduce the number of policies you are paying for.
- When you join AustralianSuper and have insurance cover, your insurance costs will be based on our default work rating – Blue Collar. This is the most expensive work rating. You can use the Work Rating Tool to see if you’re eligible for a different work rating, such as White Collar or Professional, which will reduce the cost of your cover. You can apply to change this by logging into your account online.
Disclaimers
- AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply.