Skip to Main Content

Life and Total & Permanent Disability Insurance

Through your super or not?

While many of us aren’t too comfortable thinking about death or permanent disability, none of us can predict what tomorrow has in store. We can however, plan for the worst, and enjoy a bit more peace-of-mind, knowing that if disaster strikes, we and/or our loved ones can be taken care of.

That’s where Life and TPD Insurance comes in.

If you’re with an Industry SuperFund, then it’s more than likely you also have some level of life insurance cover already – and you may not even know it.

Most super funds include life cover as an automatic part of their regular superannuation products. These are often set at a default rate, so it’s wise to check to see if you have enough, or even if you need it at all.

Of course, life insurance policies, costs and premiums in Australia can differ from one plan to another, so it’s handy to compare the differences.

Life Insurance

This pays a sum to your family or estate in the event of your death. It’s sometimes called Life Assurance or Death Insurance.

Total and Permanent Disability Insurance

TPD cover can provide you with an income if you are injured and, in the opinion of a medical practitioner, unlikely to work ever again in any job for which you are suited. Your education, training or experience are taken into account when determining this. Most insurance policies are paid out after six months of disability.

It’s important to note that super funds do not offer insurance cover for critical illness or trauma.

Life and TPD insurance comparison 

Comparison tableLife and TPD Insurance policy in your superLife and TPD Insurance policy outside
How is the insurance premium paid? Deduction from your super Paid directly by you
How are policies renewed? Automatically By letter
Can providers get volume discounts? Yes Not usually
Is it part of my super? Yes – by default No – it’s additional

It’s often handy to compare life and TPD cover online and read reviews by industry ratings groups and consumer organisations.

Premiums paid for insurance cover within super are not tax deductible by the superannuation account-holder, but can be for super funds who usually then pass the saving onto members (another reason the rates are lower!).

Getting or tailoring insurance through an Industry SuperFund

Industry SuperFunds use their bulk buying power to negotiate lower rates than most individuals can secure, and these funds then pass those savings onto members.

If you’re already a member of an Industry SuperFund, all you need to do is check your latest superannuation statement to see what your current cover is. If you want to alter it, simply call your fund and chat to one of their consultants about a quote.

If you’re not an Industry SuperFund member, you can join up easily. Simply choose the Industry SuperFund that’s right for you, head to their website and follow the links.