Is the Insurance in My Super Enough?

Often it is not enough on its own. Default cover inside super is set up to be simple and automatic, so the amount is usually a standard default figure rather than something matched to your mortgage, debts, income and family needs. For many households that default amount falls short of what would actually be required if the worst happened. It is genuinely valuable cover, especially because it is easy to obtain, but it is best thought of as a foundation rather than the full picture.

Not always in the way people assume. One of the big advantages of default super cover is that it is usually issued without full health questions, which makes it medically easy to get. The trade-off is that cover added this way can still carry exclusions or limits, and the policy definitions can be stricter than a fully underwritten retail policy. So "I got it without a medical" does not always mean every condition is fully covered. It is worth checking the actual terms rather than assuming.

Not necessarily. Cover inside super can reduce as you get older, and it can lapse if contributions stop or the account becomes inactive. Super funds are generally required to switch off insurance on accounts that have been inactive for a period, unless you have opted in to keep it. So a job change, a career break, or simply consolidating old accounts can quietly leave you without the cover you thought you had. If your situation has changed, it is worth confirming the cover is still in place.

Because default amounts are set as a standard figure, not calculated from your income or debts. A default death or disability benefit is often a modest lump sum, and any income protection held inside super typically has a limited benefit period, commonly around two years, rather than paying through to retirement age. That means the protection can run out well before you are back on your feet. The amount reflects what is simple to administer for everyone, not what your particular household would need.

It depends on your situation, and both are common approaches. Many people keep their super cover and add a tailored retail policy on top to lift the amount and improve the definitions, while others restructure their cover entirely. The right mix depends on your mortgage, income, family, health and how the premiums are funded, since paying premiums from super draws down your retirement balance. This is exactly the kind of thing worth talking through with an adviser rather than guessing.

Relying on default super cover is especially common among FIFO workers, whose rosters and incomes rarely match a default policy. We cover that in life insurance for FIFO workers.