Super funds in Australia: Life Insurance Fees and Cover

Find out how much life insurance cover is included inside your super fund and how much you're paying.

The insurance that's included with your super is known as default cover. Unless you personally make adjustments to your cover, the amount of cover you receive will generally change as you get older, as will the cost.

So much will it cost? We analysed some of top performing insurance funds based on 20-year returns and compared the cost of default insurance cover.

Search & compare our list of super fund life insurance cover

Your age Superfund Default cover Cost per week on default cover
25 CareSuper $100,280 - Death cover

$401,120 - TPD cover

$5.14
25 Hostplus $56,546 - Death cover

$113,092 - TPD cover

90% of monthly income in salary continuance cover

$2
25 RestSuper $101,200 - Death cover

$28,600 - TPD cover

$2,550 per month in salary continuance cover

$4.85
25 EquipSuper 4 x salary - Death and TPD combined 0.43 per $1000 of cover
25 AustralianSuper $116,000 - Death cover

$48,000 - TPD cover

$1,900 per month in salary continuance cover

$1.81
25 UniSuper $232,000 - Death and TPD combined $1.88
25 AustSafe Super (Sunsuper) $96,000 - Death and TPD combined $3.34
25 BUSSQ MySuper $200,000 - Death cover

$60,000 - TPD cover

$10.04
25 Cbus Industry Super $208,000 - Death cover

$156,000 - TPD cover

$10.72
25 HESTA $67,450 - Death cover

$950 per month in salary continuance cover

$2.08
35 CareSuper $401,120 - Death cover

$401,120 - TPD cover

$8.20
35 Hostplus $141,365 - Death cover

$169,638 - TPD cover

90% of monthly income in salary continuance cover

$3.78
35 RestSuper $374,000- Death cover

$28,600 - TPD cover

$2,550 per month in salary continuance cover

$20.52
35 EquipSuper 4 x salary- Death and TPD combined $5.07 per $1000 of cover
35 AustralianSuper $180,000- Death cover

$53,000 - TPD cover

$3,000 per month in salary continuance cover

$5.07
35 UniSuper $232,000 - Death and TPD combined $1.88
35 AustSafe Super (Sunsuper) 144000- Death and TPD combined $4.48
35 BUSSQ MySuper $200,000 - Death cover

$60,000 - TPD cover

$10.04
35 Cbus Industry Super $208,000 - Death cover

$135,200 - TPD cover

$10.72
35 HESTA $92,800 - Death cover

$950 per month in salary continuance cover

$5.66
45 CareSuper $401,120 - Death cover

$401,120 - TPD cover

$8.20
45 Hostplus $93,378 - Death cover

$93,378 - TPD cover

90% of monthly income in salary continuance cover

$3.78
45 RestSuper $368,500 - Death cover

$28,600 - TPD cover

$2,700 per month in salary continuance cover

$22.04
45 EquipSuper 4 x salary - Death and TPD combined $1.23 per $1000 of cover
45 AustralianSuper $124,000 - Death cover

$29,000 - TPD cover

$3,100 per month in salary continuance cover

$8.38
45 UniSuper $94,000- Death and TPD combined $1.88
45 AustSafe Super (Sunsuper) $72,000 - Death and TPD combined $3.86
45 BUSSQ MySuper $200,000 - Death cover

$60,000 - TPD cover

$10.04
45 Cbus Industry Super $208,000 - Death cover

$104,000 - TPD cover

$10.72
45 HESTA $57,000 - Death cover

$950 per month in salary continuance cover

$8.06
55 CareSuper $401,120 - Death cover

$401,120 - TPD cover

$8.20
55 Hostplus $39,160 - Death cover

$39,160 - TPD cover

90% of monthly income in salary continuance cover

$6.30
55 RestSuper $222,000 - Death cover

$28,600 - TPD cover

$2,800 per month in salary continuance cover

$23.10
55 EquipSuper 4 x salary - Death and TPD combined $4.12 per $1000 of cover
55 AustralianSuper $37,000 - Death cover

$9,000 - TPD cover

$2,800 per month in salary continuance cover

$10.73
55 UniSuper $32,000 - Death and TPD combined $1.88
55 AustSafe Super (Sunsuper) 22800 - Death and TPD combined $3.12
55 BUSSQ MySuper $156,000 - Death cover

$60,000 - TPD cover

$10.04
55 Cbus Industry Super $132,000 - Death cover

$66,000 - TPD cover

$10.72
55 HESTA $25,200 - Death cover

$950 per month in salary continuance cover

$9.02
65 CareSuper $401,120 - Death cover $4.08
65 Hostplus $10,136 - Death cover

$10,136 - TPD cover

90% of monthly income in salary continuance cover

$5.04
65 RestSuper $18,000 - Death cover

$6,200 - TPD cover

$4.84
65 EquipSuper 4 x salary - Death and TPD combined $15.47 per $1000 of cover
65 AustralianSuper $9,000 - Death cover

$2,400 per month in salary continuance cover

$13.48
65 UniSuper $13,000 - Death and TPD combined $1.88
65 AustSafe Super (Sunsuper) 8000 - Death and TPD combined $2.06
65 BUSSQ MySuper $12,000 - Death cover $10.04
65 Cbus Industry Super $50,000 - Death cover $5.32
65 HESTA $8,700 - Death cover

$950 per month in salary continuance cover

$2.14

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
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Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, ahm health members can save 10% off premiums.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
65
$100,000
Yes
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Ends 30 June 2019.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.

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Unit based (age based) vs fixed cover

There are two main types of insurance cover that is found inside a super fund.

What is unit based cover?

Unit based cover is the default way that insurance cover is allocated to super fund members. You are given 'units' of cover which provides:

  • A certain amount of cover based on age
  • For a set price

How much money can be paid out?

The number of units you are given and the amount of cover that's provided in each unit is usually is based on your at the time of your claim age. This is how unit based cover can work:

Age at the time of claim Amount provided by 1 unit for age Units provided Default cover that’s provided for age (4 units)
Before 25th birthday $110,000.00 2 $220,000
25 – 44 $110,000.00 4 $440,000.00
45 – 49 $70,000.00 4 $280,000.00
50 – 54 $50,000.00 4 $200,000.00
55 – 59 $40,000.00 4 $160,000.00
60 – 64 $20,000.00 4 $80,000.00
65 – 69 $10,000.00 4 $40,000.00
70 – 74* $5,000 Death cover only 4 $20,000 Death cover only
75 – 79* $2,500 Death cover only 4 $10,000 Death cover only

How much will it cost

Unit based cover will typically have a fixed cost. This means the cost of cover stays the same but the amount of cover that's provided will vary based on your age.

What is fixed cover?

Fixed cover is the opposite of unit based cover. Here you will receive a fixed amount of life insurance cover.

  • This amount of cover will stay the same throughout the life of the policy
  • But the cost of insurance will increase as you get older.

Here's a snapshot of how it works:

The yearly cost per $10,00 per cover

Males Females
Age Death cover only Death and TPD cover Death cover only Death and TPD cover
25 - 45 $4.26 $6.20 $1.75 $2.74
46 - 55 $9.86 $25.80 $5.70 $20.16
55+ $21.24 $72.51 $12.96 $55.53

*Listed costs

Any costs provided in the table below are considered as a general guide. They may vary based on factors such as:

  • Age
  • Gender
  • The amount of cover you choose
  • Occupation status
  • Lifestyle
  • Current health status
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