Insurance
Why do super funds offer insurance cover?
Insurance cover is an important benefit of membership in a super fund because it offers an extra way to protect your finances as you grow older.
Most super funds offer a variety of types of insurance cover to members. Death, Total and Permanent Disablement (you might also see this referred to as TPD) and income protection insurance are common types of insurance cover offered by super funds.
Benefits of insurance cover through a super fund include:
| Premiums paid out of your super account, not your pocket. |
You don’t need to find extra money to pay for the cover like you do with other types of insurance. |
| You may be covered automatically |
An advantage of insurance cover offered through your super fund is that members often receive insurance cover automatically, without having to provide evidence of their health or medical history. |
| Cover through your super fund can be cheaper |
Super fund insurance cover is often cheaper than the same type of insurance through private life insurance companies. This is because super fund insurance cover is negotiated under a group policy, which is discounted because of the large number of fund members. |
When choosing a super fund you should consider the following questions about the fund’s insurance offering:
- Do I get insurance cover when I join or do I have to apply for it?
- How do I qualify for cover? Are there any restrictions?
- What is the dollar amount of my insurance cover?
- How much does cover cost, and how are premiums paid?
- Do I have to provide evidence of my health or a medical history to get insurance cover?
- What types of insurance cover can I get?
- Can I top up my insurance cover?
- Can I customise my level or types insurance cover?
- What conditions do I have to meet to make a claim for an insurance benefit?
- Can I cancel or opt out of insurance cover?
Helpful hint
Many Australians could be paying for more insurance than they need. If you are a member of more than one super fund you may receive insurance cover automatically in each fund.
Check your fund statements to see the insurance cover you have and consider seeking professional financial advice before making any changes to your insurance.
More information
Find out more about financial advice
Find out more about TWUSUPER's insurance cover
Use our Insurance cost and cover calculator to estimate the cost of insurance
See our Insurance FAQs for answers to common questions about TWUSUPER's insurance