Can I cancel insurance in my super?

Yes. You can opt out of some or all insurance cover by contacting your super fund. Most allow you to do this online. However, if you cancel and later decide you need cover, you'll likely need to re-apply and may need to pass medical underwriting.

What's the difference between Life and TPD insurance?

Life insurance pays a lump sum to your beneficiaries when you die. TPD (Total and Permanent Disability) pays a lump sum to you if you become permanently unable to work due to illness or injury. They protect against different risks, and many people hold both.

Is insurance through super tax-effective?

Premiums are paid from your pre-tax super balance, which means you don't feel the cash flow impact. However, life and TPD premiums in super are not tax deductible to you personally. Income protection premiums in super are deducted by the fund (which claims the deduction). Outside super, you can personally claim IP premiums as a tax deduction.

Insurance Through Super Calculator

AI + Live Data

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

Free to useNo data storedReal-time dataAI insightsUpdated: February 2026

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.

Enter Your Details

Real-World Examples

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.

Frequently Asked Questions

Glossary

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.

Related Tools

Super Fee Calculator

See the full impact of fees AND insurance premiums on your retirement balance.

Super Balance Projector

Project your balance with and without insurance premium deductions.

Super Consolidation Checker

Stop paying duplicate insurance across multiple super accounts.

How to Use

1Enter your age and annual income.
2Input your current super balance.
3Select which types of insurance you have through super.
4Enter your total monthly insurance premium deducted from super.
5Add your dependant and debt details for cover level recommendations.
6Compare the cost of insurance inside vs outside super with AI analysis.

Key Information

Default insurance is automatically provided to most super members aged 25+ with balances over $6,000.
Life insurance in super covers a lump sum paid to your beneficiaries if you die.
TPD covers a lump sum if you're permanently disabled and can no longer work.
Income Protection through super typically covers up to 75% of your salary for up to 2 years (vs 5+ years for retail policies).

Pro Tips

Income protection through super is usually 'Agreed Value' for only 2 years. Retail policies may offer 'to age 65' cover — a huge difference.
TPD definitions matter: 'Own occupation' (can't do YOUR job) is better than 'Any occupation' (can't do ANY job). Most super funds default to 'Any occupation'.
If you're young and healthy with no dependants, you may not need life or TPD insurance at all — save on premiums.
Tax deductibility differs: premiums paid outside super are personally tax deductible for income protection. Inside super, the super fund claims the deduction.

Avoid These Mistakes

Not realising you have default insurance deducting premiums from your super every month.
Having duplicate coverage across multiple super accounts — paying double for the same protection.
Cancelling insurance inside super without checking if you can get affordable cover elsewhere (especially with pre-existing conditions).
Assuming income protection in super is the same as a retail policy — super IP is often far more limited.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026