Life insurance and your super

I'm building my wealth | | 2 min read

Life insurance and your super

Do you have life insurance?

If you’re a member of a super fund, there’s a good chance you’re already covered. Even if you don’t know it.

While you may think superannuation tends to focus on investment returns and retirement planning, one of the lesser-known benefits is the insurance coverage

For Equip members that means life insurancepermanent disability, and in some cases Income Protection.

According to the Australian Government, 70% of Australians with life insurance have it via their superfund. Read on to find out if you’re one of them, and how you can tailor your coverage to suit your needs.

Peace of mind for you and your family

Knowing that you and your dependents will be looked after if you’re no longer able to work because of injury, disablement, or death is what insurance is all about. It offers some peace of mind if the worst were to happen.

At Equip we offer automatic coverage for new members when they join. In most cases there’s no health check required.*

That means the majority of our members are covered, whether they realise it or not.

You can find out more about your specific insurance coverage by logging in to your account. You’ll be able to see:

  • What type of insurance you have,
  • How much cover you have,
  • How much you're paying in premiums for the cover.

What does my insurance cover?

We offer three basic types of cover:

Death – Provides a lump sum payment to your dependants if you die.
Total and Permanent Disablement (TPD) – Provides a lump sum payment to help you cover your medical costs or financial commitments if you become totally and permanently disabled.
Income Protection – Provides you with an income if you cannot work due to total or partial disability for up to 2 years. 

Note that while Death and TPD insurance are offered automatically to most of our members, Income Protection is an additional form of cover.

Who pays for my insurance?

Generally speaking, the cost of insurance cover is paid out of your super account, but in some cases your employer may subsidise the cost.  

The amount will depend on a number of factors including your age, occupation, types of coverage, and insurance amounts. Our Insurance fact sheet provides more detailed information.

Taking out insurance via your super fund can be cheaper than an individual policy. According to Canstar: “Superannuation funds can typically negotiate group discounts on the life insurance premiums charged to their members … This does not always make it cheaper than equivalent insurance cover you could negotiate yourself, but it means that the insurance premiums may well be very competitively priced.”

Your safety net

No one wants to think about worst case scenarios, but insurance is there to provide a safety net for you and your family.

We think it’s a particularly important part of our offering for members in early to mid-career, who may have a home loan, are in long-term relationships or have dependants.

Log in to your account to tailor your insurance for your lifestyle.

Find out more about your insurance coverage options.

Additional notes

*From April 2020, people aged under 25 no longer receive default life insurance cover through their super when they join a new fund, unless they’re working in a dangerous job.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("the Fund"). The information contained herein is general information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice tailored to your personal circumstances. Where tax information is included, you should consider obtaining personal taxation advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Product Disclosure Statement (PDS) and Target Market Determination for the product which are available at  Financial advice services may be provided to members by the trustee’s related entity Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). *Past performance is not an indication of future performance.

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