smartMonday insurance: check it still fits

Insurance through super is one of those things that many professionals set and forget. But as your work, finances and responsibilities change, the cover that suited you a few years ago may not be the cover you’d choose today. 

Taking a closer look means understanding what you have, what you’re paying for and whether your cover still makes sense for you – no insurance expertise needed.  

Depending on your eligibility and arrangements, insurance through super can include three main types of cover:  

• Death cover pays a lump sum if you die, generally for the benefit of your beneficiaries or estate. You may also hear it called life insurance outside super. 

• Total and Permanent Disability (TPD) cover can provide a lump sum if illness or injury leaves you totally and permanently disabled and you meet the terms and conditions of the policy. 

• Income Protection is designed for a different kind of financial interruption: being temporarily unable to work because of illness or injury. Rather than paying a lump sum, it can provide regular payments for a specified period if you meet the relevant policy terms and conditions. 

Together, these types of insurance can help protect against some of the financial consequences of death, permanent disability or temporarily being unable to work. 

There are some practical advantages to holding insurance through your super. 

Super funds can negotiate insurance for large groups of members, which can make premiums more cost-effective than some individually purchased policies. Premiums are also generally deducted directly from your super account, rather than your everyday cash flow. 

That convenience comes with an important trade-off, though… insurance premiums do reduce your super balance. 

That doesn’t make insurance through super good or bad. It just makes it worth paying attention to, to make sure the amount and type of cover you hold makes sense for you, without paying for more than you need. 

Eligible members may receive insurance automatically through their super without needing to apply for it. 

Default cover is designed to provide a useful starting point across a broad group of members. What it can’t do is account for everything that’s unique to you; your income, debts, dependants, other insurance, savings or the financial support you’d want available if something happened. Those are all things that rarely stay the same forever. 

A new job, buying a home, starting or growing a family, paying down debt or changing your existing working arrangements can all be good prompts to revisit your cover. 

It’s also possible to have insurance elsewhere, including through another super account or a policy you’ve taken out separately. So, looking at the full picture can help you understand whether you have gaps in cover or you're paying too much for cover. 

There isn’t one number that works for everyone. 

More cover can offer a larger financial safety net, but it usually means higher premiums. Less cover can reduce what you pay but may leave a bigger gap if you need to claim. 

When reviewing your insurance, consider the expenses you or the people who depend on you might need to manage. That could include a mortgage or other debts, ongoing living costs, replacing income, education expenses or additional costs associated with illness or disability. 

If you’re unsure about the right level of insurance for you, you can reach out to our team of smartCoaches for advice.  

You don’t need to wait for a major life event to take another look at your insurance. Check whether you might have insurance elsewhere, then log in to your smartMonday member account and check: 

• the types of insurance you hold 

• how much cover you have 

• what you’re paying in premiums 

• whether your beneficiaries and other details are up to date. 

Knowing what you have today makes it much easier to decide whether you want to make a change.