Whether you’re young and just starting your career, a single parent, approaching mid life or looking forward to your retirement, having life insurance cover is reassuring should you unexpectedly have an accident or illness that prevents you from earning your income.

Taking out life and total and permanent disability (TPD) insurance through a superannuation fund can be an attractive and cost effective option.

The main benefits of life insurance through a super fund are:

  • The premiums you pay are deducted from your super contribution, which means you are paying for your cover before tax.
  • The super fund buys insurance policies in bulk and the premiums you pay for the cover you receive are cheaper than the rate outside super.
  • Automatic acceptance by most super funds gives members insurance cover up to a certain level without requiring medical tests and answering health questions.
  • Convenient and easy to manage as premiums are deducted automatically from your super account so you don’t need to deduct extra money from your budget.
  • Purchasing insurance through a super fund has a range of upfront tax concessions generally unavailable outside super. For example:
    • You can claim your super contributions as a tax deduction regardless of whether they are used to purchase investments or insurance by the super fund, if you’re self-employed.
    • You can purchase insurance through a super fund with pre-tax dollars if you’re eligible to make salary sacrifice contributions.
    • You can use the extra super you receive from the Government to buy insurance if you’re eligible for a co-contribution.

It makes good sense to consider purchasing life insurance through your super fund.   The tax advantages you gain from super funded life insurance makes it a more affordable and convenient option than a stand-alone policy.


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No matter what stage of life you’re at, knowing you have life insurance to protect you and your family from unforeseen financial hardship – is peace of mind.

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