Should you have life insurance through super?

Should you have life insurance through super?

It is important to review your life insurance requirements to make sure you are appropriately covered. There are three types of life insurance cover typically provided to super fund members:


Life insurance for Death


Your beneficiaries will receive insurance when you die, either as a lump sum or as an income stream.


Total and permanent disability (TPD) cover


Pays you a benefit if you become seriously disabled and are unlikely to ever work again.


Income protection (IP) cover


Pays you an income stream for a specified period if you can’t work due to temporary disability or illness.


Benefits in having your life insurance through super


  • It’s often cheaper as super funds purchase insurance policies in bulk
  • Better for your personal cashflow by paying the premiums from your superfund
  • Your life insurance premiums may be tax deductible within your super fund, whereas only income protection is generally tax deductible if purchased outside of super
  • Some funds automatically accept you for cover without requiring a health check
  • You can usually choose the amount you want to be covered for

You need to consider your specific circumstances as to what type and level of cover is right for you and whether your super fund is the appropriate structure or whether you should have the policy outside super.


Further help:

Marsh & Partners are experts in looking after your superannuation needs and can assist you with insurance.

If you’d like to make an appointment to discuss your options, contact our Superannuation experts on (07) 3023 4800 or at

Visit our SMSF page to find out more about how we help.

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GENERAL ADVICE WARNING: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. We suggest you obtain specific financial advice from a licensed financial advisor.