Most Australians have insurance inside their super and don't fully understand it. Life, total and permanent disability (TPD) and income protection cover are commonly held inside super accounts, with premiums deducted from your balance. That can be convenient — but it also means you could be paying for cover that doesn't match your needs, or missing cover you actually require.
The three types of cover commonly held in super
- Life (death) cover — pays a lump sum to your beneficiaries if you pass away.
- TPD cover — pays a lump sum if you become totally and permanently disabled and can't work.
- Income protection — replaces part of your income for a period if illness or injury stops you working.
Why it's worth reviewing
Because the premiums come out of your super rather than your bank account, this cover is easy to ignore — but it quietly reduces your retirement balance. Common issues include:
- Duplicate cover across multiple super accounts.
- Default cover that may be too little, or too much, for your circumstances.
- Definitions and exclusions that affect whether you could actually claim.
Getting clarity on your cover
A review of the insurance inside your super — alongside your fees and performance — gives you a complete picture of what you're paying for and whether it fits your life. Our licensed advisers can walk you through it as part of a complimentary super review.
Not sure how your super stacks up?
Get a complimentary, no-obligation review of your fees, performance and insurance from a licensed Donmont adviser.
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