It's probably not something we think about every day, but what if you could no longer earn the income you previously did because you’re off work (or on reduced hours) due to sickness, injury, or (let’s be real here), death? How would you or your family cope financially?
Being insured is a simple way you can help protect both your income and your loved ones, no matter what life throws at you. That’s reassuring!
The basics of default cover in super
Many Australians may have some level of insurance cover through their super fund. You may not even realise you have it – some people have Default cover when they sign up to their super fund. However, changes to the law mean that some people under 25 or those with balances less than $6,000 may not be eligible for default super unless they opt in.
Rest Super Default cover is designed to meet the basic needs of our Members. The premium (the monthly amount you pay for the insurance cover) is automatically taken out of your super account balance. And because we don’t want those regular deductions to impact money meant for later on in your life, it’s important we get the balance right, pairing cover that meets a member’s basic needs at a reasonable cost. The result is Rest Super Default insurance is a simple, affordable package of Income Protection, Total and Permanent Disability, and Death cover.
This webpage is a summary for more details, refer to the Rest Super Insurance Guide or Rest Corporate Insurance Guide for more details.
| Income Protection (IP) |
If eligible, it’s a monthly payment provided if you can’t work for a period of time because of illness or injury. Different options allow you to tailor your cover and how much it costs. |
| Total and Permanent Disability (TPD) cover |
If eligible, it’s a lump sum payment to help if you’re unlikely to ever work again due to illness or injury. |
| Death cover |
If eligible, it’s a lump sum paid to your beneficiaries or estate if you pass away. This can be paid as a pension (under certain conditions). |
Tip: You're in control
If Default cover isn’t enough to meet your needs, you can top it up by applying for more cover* If you don’t want all 3 types of Default cover – or any cover at all – that’s OK too. You can opt out of Default cover, or you can reduce or cancel your cover whenever you like.
Want to check on what kind of cover you need right now? It’s quick and easy with the Rest Insurance Needs Analyser.
*If you decide to apply for more cover you will need to provide medical evidence and be assessed by the insurer (this is known as underwriting). Talk to us if you need help.
Why insure through my super? (and not with a separate insurance company, or not at all?)
Competitive premiums – Super funds can often keep premiums lower because they buy their policies in bulk, which lets them pass the savings on to you. But it’s still a good idea to compare costs when weighing up insurance options.
Easy payments – If you have insurance through super, your premiums are deducted from your super account. That means you don’t need to pay for premiums out of pocket. That’s one less thing to think about!
Tax-effective payments – Because the money in your super is taxed less than your regular income, it can make your insurance payments a bit cheaper in the long run.
Increase cover when needed – In many cases, you can choose to increase your cover, but you may need to answer questions and provide evidence of your health for assessment.
Refer to the Rest Super Insurance Guide or Rest Corporate Insurance Guide for more details.
Support if the unexpected does happen
It can be stressful to think about the bills, the claims, not to mention the process of getting back on track if something does happen. So, if you’re being paid an income protection benefit, you may be able to access resources to get you back to wellness and work.
Our insurer will work with you to find the best way to do this. It could be an exercise or physio program to boost your capacity to work, a plan to get back to work gradually, or help with identifying new training or career options.
Rest’s paid claims
In the 2023 financial year, Rest paid approximately 11,961 insurance claims for death (including terminal illness), total and permanent disability and income protection, worth approximately $463.2 million dollars.
Source: Rest, 30 June 2023. All figures are for the period 1 July 2022 to 30 June 2023, unless otherwise stated.
For Income Protection claims: These figures include benefits from both now and ongoing Income Protection claims that were admitted from previous years.
Want to know more about insurance payouts? There are some important facts to weigh up before you choose. Check out the Rest Insurance Guide here to find out more.
Some things to consider
Like every decision, it’s important to weigh up the pros and cons. Here are some things to think about with relying on simple Default cover through your super.
Cover can end – If you get insurance through your super, it usually stops when you turn 70 (or earlier depending on the insurance policy terms). Also, if you switch super funds, stop putting money in, or your super account becomes inactive, you could lose your insurance.
Limited amount of cover – Default insurance through super may not fit everyone perfectly. So, you'll need to think about if it's the right amount of cover for you — maybe you need more, or maybe you need less.
Reduces your super savings – When you pay for insurance from your super, you're using money that could have been saved for when you're older and retired. It isn’t all bad, as your super balance can still grow, you will just need to be sure that your insurance premiums don’t exceed what you can afford now, or in retirement. You can even make personal contributions to ensure your super balance keeps pace with what you will need.
Duplicate policies – If you have money in more than one super fund, you might be paying for more than one insurance policy without realising it. Check to make sure you're not paying more than you need.
Chat with us online via Live Chat or call us on 1300 300 778 between 8am - 8pm weekdays (AEDT/AEST). You can also access your account or message us 24/7 with the Rest App.
