Ask an adviser: insurance through super
June 10, 2019
Should I have insurance through my super fund or through another provider?
Insurance through a super fund is not necessarily better than cover outside of super, it depends on your own circumstances and what you feel is needed to protect your family.
The main benefit of insurance through your super fund is that you don’t have to undergo medical exams or provide health information, you are automatically covered.*
Super funds have contracts with insurers with whom they negotiate bulk (group) policies at a discounted rate, passing on the savings to you. The insurance risk pool is shared evenly among all fund members, rather than your risk being assessed directly as it would be for a standalone policy outside of super. As a result, premiums are generally lower for insurance though your super fund than for a standalone policy you buy directly with an insurer.
Life insurance in super is also beneficial from a cash-flow perspective – premiums are debited directly from your super balance, so you won't have to reduce your take home pay. The downside of your super paying for insurance is that it can eat into your super nest egg.
learn more about insurance through super
If you need more information on insurance cover through TelstraSuper speak with a TelstraSuper Financial Planning Adviser for no additional cost – it’s part of your membership. Call TelstraSuper on 1300 033 166 Monday – Friday between 8.30am and 5.30pm (Melbourne time) or you can request a call back online.
* Subject to the ‘At Work’ requirement and other eligibility criteria, conditions and exclusions contained in the Policy.