Life insurance through super (your handy guide)

Life insurance tips
20.11.25 | 2 min read

Wondering if the life insurance in your super is enough? We unpack the differences and what to consider when looking beyond default cover.

So, you’ve got superannuation. Great! And it came with a little bonus, some life insurance cover. But now you’re wondering… is that enough?

Let’s unpack what’s typically included automatically with your super fund and how it compares to standalone life insurance.

What is life insurance through super?

Most super funds include a default level of life insurance when you sign up (unless you opt out). This usually covers Life Cover (aka death cover), and sometimes Total and Permanent Disability (TPD) Cover.

Sounds good, right? But here’s the thing, it might not be the full safety net you think it is.

What about the default cover in super?

The insurance you get through your super fund is usually based on your age, with a set amount of cover that’s meant to suit the masses. Handy? Sure. But let’s be real, life doesn’t come in a standard size. Individual needs vary, and default cover may not suit everyone.

According to FS Super(opens in a new tab) heaps of Aussies are underinsured, with default cover inside super often falling short when life throws a serious curveball.

Potential disadvantages of life insurance through super

Here are a few important quirks of life insurance through your super:

  • Your super fund owns the policy - which can mean added complexity when it comes time to claim or accessing the benefit.
  • You might not be able to tailor it - optional extras like Critical Illness or Child Cover generally aren’t available through super.
  • Legislative changes may affect default cover and your insurance may be cancelled - for example if your super account is inactive or doesn’t meet the balance threshold.
What makes standalone life insurance different?

With a direct life insurance policy, like one from ahm, you can:

  • Choose how much cover you want (with ahm, you can choose cover up to $1.5 million, depending on your income).
  • Add optional covers like Total and Permanent Disability (TPD), Critical Illness and Child Cover if they suit your situation*.
  • Unlike super-based cover, you’re in control of the policy, not your fund.
Final thoughts

Life insurance through super can be a starting point, but for lots of Aussies, it might not be enough.

Taking out life insurance separately can give you more choice, more control, and a better chance of having the right cover when you need it most.

Interested in getting a quote with ahm life insurance?

Get a quick quote online. It’s fast, simple, and could help you take one big life admin task off your plate.

You can also contact us on 1300 867 125 if you have any questions. 

Things you should know

ahm Life Insurance and ahm Income Protection (collectively ahm life insurance) are issued by the insurer, Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 (Zurich). NEOS Direct, a registered business name of NDLI Pty Ltd ABN 70 665 747 277 AFSL 547119 distributes and services ahm life insurance which is promoted by ahm health insurance (ahm), a business of Medibank Private Limited ABN 47 080 890 259. Medibank Private Limited is an authorised representative AR No. 286089 of NEOS Direct.Any advice provided is general only and doesn’t consider your objectives, financial situation or needs. You should consider these factors, the appropriateness of the advice, and carefully read the relevant Product Disclosure Statement (which sets out the product terms, conditions and exclusions), Target Market Determination and Financial Services Guide before making a decision to acquire, or continue to hold, the product.Your personal information will be handled in accordance with the Privacy Policies of the parties involved. Click to view the NEOS Direct Privacy Policy, ahm Privacy Policy or Zurich Privacy Policy.* For details on Life Cover and optional Critical Illness Cover, TPD Cover, Child Cover, including definitions, qualifying periods and eligibility criteria, please refer to the PDS(opens in a new tab)