Keep up to date with the financial market here

Insurance through Superannuation


Insurance through superannuation

Many super funds arrange life and disability cover for their members. Insurance is arranged by the super fund trustee, acting on behalf of the members of the fund. Having insurance for accidents and illness can provide a sense of security for you and your family.

Super funds typically have three types of insurance for members:

  • Death cover (also known as life insurance) - Your beneficiaries receive a benefit if you die
  • Total and permanent disability (TPD) cover - You receive a benefit if you become seriously disabled and are unlikely to ever work again
  • Income protection (IP) cover - You receive an income stream for a specified period if you can't work due to temporary disability or illness

Like other insurance policies, you will pay insurance premiums. These are deducted from your super account balance. Many super funds have a default level of cover that provides a small amount of insurance. However, you can choose to increase or decrease your level of cover to meet your needs.

Why Insure Through Superannuation

There are benefits in getting life insurance through super:

  • It's often cheaper because super funds purchase insurance policies in bulk
  • There may be a tax advantage because the premiums are paid from your super account, not your after-tax income
  • You can get the cover you need for you and your family, even if money is tight
  • It's easy to manage because premiums are automatically deducted
  • Some funds automatically accept you for cover without requiring a health check

However, you also need to be aware that:

  • The types of insurance available are limited
  • The level of cover may be limited
  • If you move to a different super fund or your employer's super contributions stop, your cover may end without notice
  • If you have more than one super fund you may be paying for insurance in each fund, which may be an unnecessary cost
  • Tax may be payable on some benefits
  • There can be delays in the payment of life insurance benefits as these go to the fund first, who then distribute them to you or your beneficiaries
  • If you do not make a binding beneficiary nomination, or your fund does not offer binding nominations, the super trustee will decide who gets your benefits when you die. Usually benefits are paid to dependents, after taking your wishes into consideration
  • If your super recipient is not a dependant consider getting financial advice as there may be tax implications

Speak to an AFSG Financial Adviser about establishing insurance through your superannuation today.

Life, TPD, Trauma & Income Protection

Free Life Insurance Comparison

We are life insurance specialists and can provide you with a detailed comparison on a range of policies on offer to find not only the best product that matches your individual needs, but one that provides you with the best value.

Apply for Life Insurance / Get a comparison

There are a number of key insurance areas where we can provide assistance


Term Life Insurance

Term Life Insurance pays a lump sum upon the death of the life insured. This provides protection to your loved ones where in the event of the insured person's death, the lump sum assists in paying off any outstanding debts such as a mortgage and assists in the coverage of funeral expenses.

Total and Permanent Disablement Insurance (TPD)

TPD can be taken as a stand-alone policy, but more commonly it is taken as an option with Term Life as an extension. TPD insurance provides a lump sum payment in the event of the life insured becoming totally and permanently disabled.

Trauma Insurance

Trauma policies pay a lump sum in the event of an injury or sickness as defined in the policy, for example cancer, heart attack or stroke. This can be taken as a stand-alone policy, or attached to a life insurance policy.

Trauma Insurance is designed to replace your income if you are unable to work due to sickness or injury.

Mortgage Protection

Mortgage Protection is designed to provide you with a lump sum payment on death combined with an income stream should you be unable to work. The policies can even include redundancy cover. With reduced underwriting these policies can be implemented extremely quickly. We can provide a comparison of Mortgage Protection policies for you.

What to do next?

Apply for a comparison / quote

Contact an AFSG Financial Planner

Book an appointment via Skype

Motor Vehicle Insurance

Why choose AFSG to assist in the facilitation of your car insurance?

  • Up to $500 cover for personal items stolen from your car.
  • Rental car use for up to 14 days if your car is stolen and not recovered.
  • Legal liability for up to $20 million.
  • A range of options including cover for accidental windscreen and glass damage
  • A quick and easy claims process.
  • Safe Driver Discount for eligible drivers.

Get a Quote

Apply for Motor Vehicle Insurance now!

Phone:Call us on 1300 737 167     Email:Send us an email

Find out how we can help you.