insurance in super

While many Australians don’t think twice about car or home insurance, it often takes a big event – like becoming a parent - before they check if they have the right level of life insurance cover. 

Total and Permanent Disability, and Salary Continuance insurance is designed to protect you in case of illness or an accident and you can no longer work, while Death cover can help to look after your loved ones if you die of natural causes.   

Unfortunately, research shows many people aren’t covered for what they may need if something unfortunate happens. In fact, actuarial firm Rice Warner found the underinsurance gap widened in the period 2017 to 2020, and the total sum insured for Death and Total and Permanent Disability (TPD) cover dropped by 17 and 19 percent respectively in the two years to June 2020. 

A simple solution

With the cost of living rising, some people may decide they can’t afford to have insurance premiums regularly deducted from their bank account.  

However, as an Active Super member, you can access insurance through your super – which means you don’t have to worry about extra costs coming out of your pay cheque. 

Generally, insurance within super is cheaper than retail insurance because the fund buys insurance policies for its members in bulk. In contrast, retail policies are issued at an individual level. 

At the same time, insurance in super can be easier to access for people who may work in laborious or higher-risk roles, who would otherwise have to undergo health checks before the insurer agrees to provide cover. 

Making it easier

When you joined Active Super, it’s likely you also received basic Death and TPD insurance cover. Members aged 25 and over with balances of $6000 or more are given this automatically. 

However, the basic level of cover may not be enough, depending on your job and your personal circumstances. 

Recently, we’ve made it easier to increase your level of insurance after a ‘life event’ – such as buying a home, getting married, having a child or losing a partner. 

Previously, when these events happened, a member wanting more cover would have to undergo a process known as underwriting, which includes applications and sometimes a medical check-up in order to obtain insurance cover. 

Now you can increase your level of cover without having to undergo this (sometimes lengthy) process by answering five questions on the application for Life Events cover form*. We’re hoping this will give our members the opportunity to easily access the level of cover they need – for them and their loved ones. 

You can find out more about life events cover, including eligibility, on our website.

Remember, you can always speak to an Active Super representative about your insurance, your benefits and increasing your cover. 

Seek Advice

If you would like to discuss your life insurance needs, contact us on 1300 547 873 or make an appointment with a financial adviser to see how we can help.^

Book now