Insurance can help financially protect you and your family if something unexpected happens. It’s an arrangement that may pay a benefit to you or your loved ones if you die or can't work.
However, how much you pay and whether you can receive a benefit depends on a range of factors.
What are the benefits of having insurance in your super?
There are some good reasons to have insurance in your super. Some of these can include lower premiums and easier budgeting.
It makes managing your premium payments easier
Firstly, your premiums are automatically deducted from your super rather than out of your after-tax salary or wages.
This can make it easier to manage your budgeting. Also, you can manage your insurance and your super in one place.
We work with insurers for lower premiums
Generally, your premium will be lower than the amount you would pay for a non-super insurance policy, as super funds can negotiate group rates with the insurer on behalf of members.
You will need to consider your level of cover and the impact of premiums on your account balance. If these payments aren't offset by regular super contributions or rollovers, it will reduce your account balance.
Consider your insurance needs
Depending on your circumstances, you may have more cover than you need or not enough cover.
You can decrease your insurance at any time, but if you want to increase your cover, you will need to apply. The insurer may accept or decline your application.
It’s a good idea to do your research or speak to a financial adviser.
We can help you find an adviser if you don't have one.
There are many tools and sources of information you can use.
Moneysmart has a good summary on how life insurance works.
The Moneysmart life insurance calculator can help figure out if you need cover and how much cover you might need.
Types of cover
Generally, there are three main types of insurance cover in super.
It’s there to protect you and your family when you pass away, become disabled or are unable to work due to illness or injury.
Death cover, also known as life cover, pays a lump sum to you if you’re terminally ill, or to your dependants, estate or legal representative if you die.
Total and Permanent Disablement (TPD) cover pays a lump sum if you’re unlikely to ever work again due to illness or injury.
Salary Continuance Insurance (SCI), also known as Income Protection (IP), can provide a monthly income if you stop work due to illness or injury. You can choose different benefit periods and waiting periods for SCI cover.
- A benefit period is the maximum length of time you may receive regular payments if you are disabled.
- A waiting period is the continuous period of time an insured person has to be totally or partially disabled before any regular monthly payment starts.
How do I find my level of cover?
Your type and level of cover depends on which super account you hold. Your employer may have negotiated your insurance on your behalf.
There are a few ways you can check your level of cover.
- Check the insurance section of your latest super statement.
- Log in to our secure online portal. FirstNet Investor for FirstChoice members and FirstWrap for FirstWrap members.
- Download the Colonial First State mobile app. The mobile app is not yet available for FirstWrap members, but you can log in to FirstWrap.
- Contact us. We are available Monday to Friday, 8:30am to 6pm AEDT.
You can find out more about your insurance cover by referring to the Product Disclosure Statement (PDS) and our claims process.
Product Disclosure Statements and Insurance Booklets
Insurance through FirstChoice Wholesale Personal Super can offer financial security for you and your family, plus the convenience of taking out cover within your super fund.
You can have:
- Death cover only, or
- Death cover and TPD cover.
You can choose salary continuance cover with:
- waiting periods of 30 or 90 days, and
- benefit periods of 2 years or 5 years or up to age 65.
FirstChoice Employer Super generally provides you with a specified level of cover, based on the insurance design set up by your employer. This super account is open to employee members, their spouses and retained benefit members (members who have left their previous employer).
You can have:
- Death cover only, or
- Death cover and TPD cover.
If it’s not already included in your plan, you can choose salary continuance cover with:
- waiting periods of 30 days, 60 days or 90 days, and
- benefit periods of 2 years or 5 years or up to age 65.
Insurance is provided by Avanteos Investments Limited (AIL) through FirstWrap Life Protect.
You can have:
- Life cover,
- Life and TPD, or
- Income protection cover.
You can choose income protection cover with:
- waiting periods of 30, 60 or 90 days, and
- benefit periods of 2 years or up to age 65.
Where can I find out more?
Next Steps
Apply for more cover
You’ll need to provide us with some identification and details before you apply
How to cancel or reduce your insurance cover
You can reduce or cancel your cover at any time
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Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
The insurance provider is AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia, the ‘Insurer’). AIA Australia is part of the AIA Group. The respective insurance covers are provided under policies issued to the trustee.
Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.