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Insurance through your super

Check how this works and see if you’re getting the cover you need.

Some super funds automatically offer insurance cover to their members – while others let you choose if you would like to take out different types of insurance. Insurance premiums are deducted from your super balance, so you don’t need to worry about finding extra money in your weekly budget. But these regular deductions can impact your super balance, so it’s worth making sure your fund’s insurance is right for your own circumstances and needs.


Whether you automatically received cover when you joined your fund or have chosen to add insurance yourself, here are some things to look for when comparing your insurance.

Types of cover

Different super funds offer different types and levels of cover – with their own features, exclusions and costs. The types of cover available may include:

  • Life cover (also called Death cover). Pays an agreed benefit after you pass away, either as a lump sum or income stream. 
  • Total and permanent disability (TPD) cover. Provides a lump sum if you become seriously disabled and are unlikely to ever work again. 
  • Income protection cover (also called Salary Continuance cover). Provides a regular payment for a specified period if an illness or injury prevents you from working.

Comparing super funds

When comparing insurance cover, make sure you check:

  • what your insurance covers you for by reading the terms and conditions
  • how much you’re covered for
  • how much you’re paying in premiums
  • whether you can transfer your cover if you change super funds.

 

Your statement will tell how much cover you have and what it costs, and you can check the Product Disclosure Statement to understand what you're covered for and whether it can be transferred.

Things to consider

Insurance terms and conditions can be detailed so make sure you pay particular attention to the section about exclusions, which tell you what you’re not covered for. For example, many super funds won’t provide insurance cover for pre-existing conditions, or after you reach their age limit – usually 65 or 70.


If you receive insurance cover through your employer’s super fund, the premium rates may be lower. However, if you change employers, take extended leave, or stop receiving employer super contributions, your cover may be terminated – leaving you without insurance protection.

Get the right advice

Insurance can be complicated, and with so many options available it can be hard to know if you have the insurance that’s right for you. A financial adviser can help you find the best insurance solution for your needs and budget – so you know your loved ones will be taken care of.

Disclaimer
Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (Colonial First State) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. The PDS and FSG can be obtained from colonialfirststate.com.au or by calling us on 13 13 36.