Why insurance in super can be worth it

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!

*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 2024 financial year, Rest paid approximately 12,996 insurance claims for death (including terminal illness), total and permanent disability and income protection, worth approximately $497 million dollars. That's about $1.3 million in claim benefits paid per day.¹

Want to know more about insurance payouts? There are some important facts to weigh up before you choose. Check out the Rest Insurance Guide 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.