Insurance cover through your super – what you need to know

Many people consider personal insurance a luxury they can’t afford, but as a member of AustralianSuper you may already have insurance cover through your super. This cover can help to protect your future financial security, should the unexpected happen leaving you injured and unable to earn an income.

The 3 most common types of insurance cover included in super are:

  • Death cover,
  • Total & Permanent Disablement (TPD) cover, and
  • Income Protection.

Take some time to understand each one, know what you’re covered for and how much your cover costs. The cost of your insurance is called a ‘premium’ and is automatically deducted from your super account not your take home pay.


3 types of insurance cover through your super 

Death cover (also known as Life insurance) 

Death cover is a type of insurance which pays out a lump sum of money in the event of your death. It can also be claimed if you’re diagnosed with a terminal illness.

You’ll get basic Death cover1 once you’ve turned 25, have a super balance of $6,000 or more, and you’re receiving employer contributions2. The cost is automatically deducted from your super account and you won’t have to provide any health information. Your cover is age-based, so the amount and cost of it will change as you get older.

With Death cover, the money is paid to a beneficiary - someone you nominate to receive your payout. It can be your partner or anyone  who depends on you financially – such as children. In some cases, the money may go to a legal representative, who can then follow any wishes in your Will, or pass the money to your nominated person.

It’s important to make sure you have nominated a beneficiary, and it can help prevent any confusion in the future. You can change your beneficiary at any time.  



Total & Permanent Disablement (TPD) cover

Total and Permanent Disability (TPD) cover covers you for illness or injury that results in you having a total or permanent disability which means you're no longer able to work. It also covers terminal illness. It can pay you a lump sum which could help cover rehabilitation costs, renovations to your home to manage your disability, debt repayments and help with the cost of living, amongst other things.

Please note that this cover is only applicable if you’re unable to work at all, not just within your current job.

As with Death cover, you’ll get basic TPD cover1 once you’ve turned 25, have a super balance of $6,000 or more, and you’re receiving employer contributions2. And the cost is automatically deducted from your super account. And the cost is automatically deducted from your super account.

Costs vary for TPD. Not every member’s cover is age-based. If you’re a Select member you will receive salary-based cover. Some members have fixed or extra cover, so the cost won’t change as you age, but you may chose to adjust your limits. If your cover is age-based cover, costs may changes as you get older.



Income Protection cover

Income Protection is designed to protect your income if you become injured or ill and can’t work for a period of time. It can provide monthly payments to support you while you’re not earning your regular salary.

You can apply for cover from age 15 – 69 and like Death cover, if you’re age 25 or over with $6,000 or more in your super account, and receiving employer contributions2, your cover will be automatically provided1.

How much your Income Protection costs will depend on your age, the amount of cover you need and your individual work rating (see below). The cost is deducted from your super account, you just need to make sure you have the right level of cover.

Income Protection doesn’t cover redundancy. Insurance against loss of income from business closure or lack of shifts can’t be provided by super funds.



Check your insurance cover

AustralianSuper automatically provides most members with a basic level of insurance cover when they open an account. You can review your cover on the AustralianSuper app, or by logging into your online account.

Check your ‘work rating’ so you don’t overpay 

What you do for a living can affect what you pay for your cover. Your job will fall into one of 3 categories, called work ratings. AustralianSuper offers 3 levels of work ratings - Standard, Low Risk and Professional.

A Standard work rating is automatically given to most new members regardless of their occupation, which means your cover is the most expensive. You should consider whether you’re eligible for a Low Risk or Professional rating to ensure you're not paying for more cover than you need to.

If you’re an AustralianSuper member you can use the Work Rating Tool to see if you’re eligible for a different rating. If you are, you can apply to change your work rating. Log into your account and go to My Insurance.


Understand how much cover is right for you

The right level of cover for you depends on your personal circumstances, lifestyle and future needs. For example, do you have a mortgage, or a family? Or do you rent and live with housemates? Just like home insurance, your lifestyle will affect your needs.

When you look at insurance cover and how much you need there are several things to consider. Including:

  • Day-to-day living expenses that your salary covers (such as bills, food, transport).
  • Any debts – mortgages, credit cards, personal loans.
  • How much income you (and your family) need to live comfortably?
  • Future costs such as medical care, education for your children or yourself, and the costs associated with anyone you support financially





Making changes to your insurance cover

If you’re an AustralianSuper member and want to make changes or cancel your cover, log into your online account or the mobile app to start the process, or use the relevant form(s) to change your insurance cover.



Speak to an insurance consultant for more help

Insurance is not the easiest thing to make time for, and it can be a complicated area to get right. But the right insurance can give you peace of mind that you’ll be prepared financially if something unforeseen happens.

Download the Insurance in Your Super Guide for more information about insurance through AustralianSuper and speak to the AustralianSuper team to book in a personal insurance consultation.




1. Death cover and TPD cover depend on the plan or division you join. If you work If you work for a Federal, State or Territory Government employer through a department, agency, government business enterprise or statutory authority, you may be a member of our Public Sector Division. If your employer provides tailored insurance under an employment arrangement, you may be a member of AustralianSuper Select Division.
2. Age limits and other conditions apply

This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs.  Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 

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