Most Australians with superannuation in APRA-regulated funds have some form of insurance cover held within their fund, typically including death cover, total and permanent disability insurance, and income protection. This insurance is funded through deductions from the member's superannuation balance.
Insurance inside superannuation provides an accessible and often affordable way for Australians to obtain life and disability cover, as premiums are paid from pre-tax superannuation contributions rather than after-tax income.
Reforms to the superannuation system including the Protecting Your Super legislation have changed how insurance is provided in superannuation funds. Inactive accounts with low balances no longer automatically receive insurance.
A significant proportion of Australians are unaware of what insurance cover they hold inside their superannuation fund, or whether it is adequate for their needs. Reviewing fund insurance cover is an important part of financial planning.
Data sourced from APRA Annual Fund-Level Superannuation Statistics and APRA Life Insurance Statistics. Updated annually.