A lot of Australians don’t realise they already have some insurance tucked away inside their superannuation.. In fact, for a lot of Australians, it’s the only cover they hold. It’s a helpful starting point, but it’s usually just that – a starting point.
Here’s a simple overview of what this insurance is, how it works, and why it’s worth taking a moment to check whether it’s enough for you and your family.
You may already have basic cover
Most super funds automatically include Life insurance, TPD insurance, and sometimes Income Protection once you meet certain eligibility rules.
You don’t have to answer health questions for this default cover – it’s built in and designed to be affordable.
But it’s generally quite modest
Because premiums are deducted from your super, funds keep the cover amounts low so your retirement savings aren’t eroded.
From the research, the typical default Life cover sits around $135,000, with TPD often similar. Helpful, but not usually enough to support a family long term.
Why this matters for households today
Mortgage sizes across Queensland have continued to rise, including in Toowoomba, where many families carry home loans in the mid-$400,000 range and above.
When you compare that to the $100k–$150k default insurance most people have, the gap becomes clear. Default cover might help for a short time, but it won’t clear a mortgage or provide many years of support if something unexpected happens.
A simple example
Say you’re in Toowoomba with a $450k mortgage, and your super fund has given you the standard ~$135k default life cover. If something happened, that payout wouldn’t clear the debt, and it wouldn’t provide ongoing support for your family.
For most people, that’s not the safety net they thought they had.
A quick review can make things clearer
Understanding what you have inside super can be done in minutes. An adviser can help you work out:
- What your current cover levels are
- Whether it’s enough for your stage of life
- How long it would realistically support your family
- Whether increasing or tailoring your cover inside super makes sense
Topping up your cover inside super is usually straightforward and often cost effective.
It’s a small check that can have a big impact
Default insurance is valuable, but it isn’t designed to meet every family’s needs. A quick review now can give you peace of mind that your loved ones would be financially secure if things didn’t go to plan.
If you’d like help reviewing your super insurance or exploring your options, we’re here to support you.
For more detail on insurance, debt levels and household trends, you can visit:
ABS – Australian Bureau of Statistics
Superannuation, household debt and income data
https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release
NAB – Australian Wellbeing Survey Q2-2025
https://news.nab.com.au/content/dam/nab-news/documents/nab-australian-wellbeing-survey-q2-2025.pdf
