What types of insurance are available through super?
read
Published on 1 Oct 2025Have you ever wondered about the different types of insurance available through your super fund? There are three main types, and they all have a different purpose.
1. Life insurance
|
What is it for? |
How is it paid? |
| Life insurance, also known as death cover, provides financial support to your loved ones if you pass away or are diagnosed with a terminal illness. |
Life insurance is a one-off lump sum payment. It will be paid to you if you’re diagnosed with a terminal illness, or to your loved ones if you die.
It can be used to pay off debts, manage ongoing expenses, or provide your loved ones with more security in retirement.
|
2. Total and Permanent Disability insurance
|
What is it for? |
How is it paid? |
| Total Permanent Disability (TPD) insurance supports you financially if you become permanently disabled due to an accident or illness and can no longer work. |
TPD insurance provides you with a one-off lump sum payment.
|
3. Income protection
|
What is it for? |
How is it paid? |
|
If you’re unable to work for an extended period due to an illness or injury, Income Protection provides regular payments to replace part of your income.
If you need to reduce your working hours or change the type of work you do due to illness or injury, you may also be eligible to make an Income Protection claim.
|
Income Protection pays you a percentage of your pre-tax income in regular payments (usually monthly) while you’re unable to work.
It’s intended to help cover your living expenses while you’re not earning an income, or if you’re earning less than usual.
|
Even though they may seem similar, there’s a difference between Workers Compensation and Income Protection. Workers Compensation pays you a benefit if you get sick or injured as a direct result of your job. Income Protection also pays you a benefit if you’re injured or ill and unable to work, but the reason doesn’t need to relate to your job.
What’s the right amount of insurance cover?
This is different for everyone, and the amount will likely change many times throughout your lifetime.
You may need a higher level of cover during times of your life when you have more debts and expenses. People often reduce their cover when they’re older once they’ve paid off their mortgage and are no longer financially supporting their children.
Determining which level of cover is right for you can provide valuable peace of mind. If you have dependants who rely on your financial support or debts that your family would struggle to pay off without your income, having adequate life insurance can reduce financial stress for you and your loved ones.
The TAL Life Insurance Calculator can give you an idea of how much cover you might need if the unexpected happens. You can ask your super fund or a financial adviser for guidance.
Important Information
The health, medical, diet and nutrition, fitness and financial information contained in this blog post is not a substitute for advice from a qualified medical or other health professional or a financial adviser. It is not intended to diagnose, treat, cure or prevent any health problem. Always consult your medical practitioner or other health professional in relation to any medical issue or concern, before changing your diet, starting an exercise program, or taking medication or supplements of any kind. Always consult your financial adviser in relation to your financial needs and objectives. While all care has been taken to ensure that the information provided is accurate and complete at the date of publication, neither TAL Life nor its employees accept liability for any loss or damage caused as a result of any use of or reliance on the information. The information in this blog post is of a general nature only and does not take into account your individual needs, objectives or financial situation. Before making any decision about a life insurance product you should
consider the relevant Product Disclosure Statement and seek professional advice before deciding whether it is suitable for you. You can also get a copy of any relevant target market determination. This blog post has been prepared by TAL Life Limited ABN 70 050 109 450, AFSL 237848, an issuer of life insurance.