The Finance Algorithm
§ Tool · tier 2 · independent

Insurance Through Super Calculator.

Compare the cost and benefits of holding life, TPD, and income protection insurance inside vs outside your super fund.

Live dataFree, no signupOn-deviceLiveupd February 2026
Inputs
Your numbers
35

Your current age

$
$100k

Used to estimate appropriate cover levels

$
$150k

Insurance premiums are deducted from your super

Select all insurance types you have through super

$
$80

Total monthly insurance deducted from your super

People financially dependent on you

$
$0

Outstanding mortgage and significant debts

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Most Australians have some form of insurance through their super fund — often without actively choosing it. While insurance in super has the advantage of being paid from your super balance (not your pocket), it also erodes your retirement savings. This calculator helps you understand the true cost of your insurance premiums, whether your cover levels are adequate, and when it might make sense to hold insurance outside super instead.

§ Worked examples

Real-world scenarios

The Silent Drain

Mia is 28 with $45,000 in super. She's paying $65/month in default life and TPD insurance. She has no dependants or mortgage.

Mia pays $780/year for insurance she may not need. Over 39 years, accounting for lost investment returns, these premiums cost her approximately $90,000 in retirement savings. She should consider opting out until she has dependants.

Adequate Cover Check

Ben, 40, has $200,000 super, a $500,000 mortgage, 2 kids, and $300,000 in life cover through super.

Financial planning rules suggest 10-12x income in cover. Ben earns $120k so should have $1.2-1.4M in life cover. His $300,000 falls far short. He needs to either increase super cover or supplement with a retail policy.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Default Insurance
Automatic insurance cover provided by your super fund. Since April 2020, it's only provided to members aged 25+ with balances over $6,000.
TPD (Total & Permanent Disability)
Insurance that pays a lump sum if you become permanently unable to work. 'Any occupation' means you can't do ANY job; 'Own occupation' means you can't do YOUR specific job.
Income Protection
Insurance that replaces a portion of your income (typically 75%) if you're unable to work due to illness or injury. Waiting periods and benefit periods vary significantly.
Sum Insured
The total amount of coverage you hold. For life insurance, this is the lump sum paid on death. For IP, it's the monthly benefit amount.