How or why to review insurance through your super
2025 | 5min read
Insurance through super: is it right for you now or in retirement?
Most super funds offer insurance through their super. And with premiums that come out of your super, not your wallet, it’s a popular choice for many Australians. No matter which insurance route you go down, as you move closer to retirement it's worth taking a closer look at your cover to make sure it still matches your needs and gives you value for money.
What you need to know
You may receive insurance automatically through your super fund. The amount you pay and what you're covered for can vary significantly between super funds so it’s important to review.
You can also receive insurance through your super fund by:
- opting in to default insurance, or
- applying for voluntary insurance based on your needs.
Insurance through super usually stops between ages 65-75, depending on your fund and the type of cover.
As you get older, you might be paying more in premiums but getting less coverage.
Understand your insurance through your super
You may have more than one type of insurance through your super account - it could be a combination of different protections which are designed to support you and your family financially. Aware Super offers members three types of insurance: death (including terminal illness), total and permanent disablement (TPD), and income protection (IP) cover.
Let’s look at how each type of insurance works.
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| Death cover (life insurance) | Total and permanent disablement (TPD) | Income protection (IP) |
|---|---|---|
| Death cover is there to support your loved ones financially after you're gone. If something happens to you, your beneficiaries receive a payout that can help to provide ongoing financial support. Aware Super offers death (including terminal illness) cover. | If you become totally and permanently disabled due to illness or injury and can't return to work, TPD insurance provides financial support. As you get older, any existing health issues might make it harder to obtain TPD insurance if you don’t have it already. While the cost also usually goes up with age, the support can be important if health issues prevent you from working. | Income protection insurance helps replace your regular income if you can't work temporarily because of illness or injury. While it's valuable during your working years, it becomes less relevant once you've retired and have stopped receiving a regular income. |
Did you know?
At Aware Super, there are two options for death and TPD cover – age-based cover and fixed cover. You can apply for either cover from age 15, and your cover ends at age 70.
Aware Super also offers income protection cover. The amount of cover you want (if accepted by the insurer) won’t automatically change as you get older - so it's important to regularly review your cover to make sure it keeps up with any salary increases you receive. You can apply for higher cover if you need to. Income protection cover ends when you reach age 65.
Check and apply for insurance online, anytime.
Why review your insurance for retirement?
These days, many Australians are working differently - retiring later, switching to part-time employment or doing consulting work. Your insurance needs to keep up with these changes.
It might be time for a review if:
- You’re thinking about retiring in the next few years
- You’ve paid off your mortgage
- Your finances have changed
- Your children have become financially independent
- You're thinking about cutting back your working hours
- You’ve reached preservation age (60 years old)
- You're considering ways you can make your super savings stretch further in retirement.
How long will insurance through my super last?
The insurance cover your super fund offers will end at a certain age, and it’s worth checking as it does vary. Here at Aware Super, insurance typically stops at the following ages:
- Death and TPD cover continues until you’re 70.
- IP continues until you’re 65.
Read the Insurance Handbook for more information.
The impact of insurance premiums on your retirement savings
Insurance premiums come straight out of your super savings, so they do have an impact on how much you’re saving for retirement. While you’re still working, though (and perhaps have dependents), this might be a vital safety net.
As you plan for retirement, it’s worth thinking about whether the protection you're getting through your insurance in super is still relevant for your life stage.
Make your insurance work better for you
Check your current cover
- Log into your Aware Super account to review your insurance
- Look at how much you're paying in premiums
- Check when your cover expires.
Consider your needs
- Think about your financial obligations
- Consider who depends on your income
- Factor in your age and health
- Review other insurance policies you may have, so you’re not doubling up.
Make some decisions
- Keep your coverage if it works for your financial and estate planning needs.
- Adjust or reduce the level of coverage if you’re feeling more comfortable with your financial safety net.
- Consider cancelling if the cover doesn’t feel necessary (just make sure you have a plan B).
Did you know?
While it’s simple to update or cancel your insurance online anytime, you’ll have to apply again if you change your mind – and you'll generally have to answer questions about your medical history and do a medical check when reapplying.
Your next steps
In just a few minutes, work out how much cover you may need and how much it will cost.
Join our experts as they break down insurance into easy-to-understand topics through our live webinar education series.