Does Your Super Include Insurance? How to Check Right Now
- Apr 12
- 7 min read
If you have ever had a job in Australia, there is a strong chance you have insurance cover sitting inside your superannuation account right now. Most people do not know it is there. Many who do know have no idea what it covers, how much it is worth, or that they may be entitled to make a claim.
Over $1 billion in super insurance benefits goes unclaimed in Australia every year. The most common reason is not ineligibility. It is unawareness.
This guide explains exactly what insurance is held inside Australian superannuation accounts, how to find out what you have, and how to access it if you are eligible to claim.
What Insurance Does Super Include?
Most Australian super funds provide three types of insurance cover as part of a default group insurance arrangement. These are separate from your retirement savings and are funded through a small premium deducted from your account balance.
The three types are:
Total and Permanent Disability (TPD) insurance pays a lump sum if you suffer an illness or injury that permanently prevents you from returning to work. The average TPD payout across Australian claims is approximately $440,000.
Life insurance (death cover) pays a lump sum to your dependants or estate if you die. In some cases, a terminal illness diagnosis allows you to access part of this benefit while you are still alive.
Income protection insurance pays a monthly benefit, typically up to 85% of your pre-disability income, if you are temporarily unable to work due to illness or injury. This benefit is paid over a defined period called the benefit period, after an initial waiting period has been served.
Not every fund offers all three. And the definitions, amounts, and conditions vary significantly between funds.
Over 50% of Australians do not know their super includes insurance cover. Most of the other 50% do not know the full extent of what they are entitled to.
Why Most Australians Don't Know About Their Cover
Super insurance is a default, opt-in product for most members. When you join a super fund through an employer, insurance cover is usually activated automatically and premiums are deducted from your contributions. There is no application to fill in, no medical examination, and in most cases, no letter that says "you now have $500,000 of TPD cover."
Because the cover is invisible in day-to-day life, most people only discover it exists when something goes wrong. By that point, the confusion of dealing with a serious illness on top of navigating an insurance claim they did not know they had becomes overwhelming.
This information asymmetry is not accidental. Super funds profit from premiums and are not required to proactively inform you when you may be eligible to claim.
How to Check What Insurance You Have Right Now
There are several ways to find out what insurance is attached to your super account:
1. Log in to your super fund's member portal.
Most major funds have an online member portal where you can view your insurance cover type, benefit amount, and current status. Look for a tab or section labelled "Insurance" or "Cover."
2. Read your annual super statement.
Your fund is required to send you an annual statement. It should include details of any insurance included in your membership. If you have not received one recently, check your email or contact your fund.
3. Request a copy of the Product Disclosure Statement (PDS).
The PDS details all the terms, conditions, exclusions, and definitions that apply to your insurance cover. This is the document that determines whether you are eligible to claim. Contact your fund directly to request the most recent version.
4. Use the ATO's myGov super lookup tool.
If you have had multiple jobs, you may have insurance across several old super accounts. The ATO's Find My Super tool, accessible via myGov, helps you locate inactive or lost super accounts that may still carry active insurance.
5. Contact Better Claim for a free check.
If you are not sure where to start, Better Claim can check your super fund's insurance cover and eligibility criteria on your behalf as part of a free assessment. We regularly find cover in accounts clients did not know existed.
What Each Type of Super Insurance Covers
TPD Insurance
TPD pays a lump sum when a member is assessed as being totally and permanently disabled, meaning they are unlikely ever to return to work. The definition of "totally and permanently disabled" varies between funds and is one of the most important factors in whether a claim succeeds.
Two main definitions exist. Under "any occupation" TPD, you must be unable to work in any occupation you are reasonably suited to by education, training, or experience. Under "own occupation" TPD, you only need to be unable to return to your previous specific occupation. Own occupation is easier to satisfy, but most industry funds now use the any occupation definition.
TPD benefits are paid as a lump sum into your super account and can be released to you directly.
Income Protection Insurance
Income protection replaces a portion of your income (usually up to 85%) while you are temporarily unable to work due to illness or injury. It is not a lump sum. It pays monthly over a defined benefit period, after a waiting period.
Waiting periods are typically 30, 60, or 90 days. Benefit periods are typically 2 years or until age 65. Your specific terms depend on your fund's group insurance policy.
Life Insurance (Death Cover)
Life insurance pays a lump sum to your nominated beneficiary or estate on death. If you have received a terminal illness diagnosis with a life expectancy of under 24 months, you may be able to access some or all of this benefit immediately, in addition to any TPD cover.
What Your Super Fund Won't Tell You
Super funds are not required to contact you when you may be eligible for an insurance claim. They are not required to explain your options when you stop working due to illness. They will not call to check whether you should be claiming.
Beyond that, there are specific things most funds will not proactively disclose:
You can have insurance across multiple funds simultaneously. If you have had more than one employer, you may have active cover under several accounts at once. Each can be claimed against separately.
Inactive accounts may still have active insurance. An account you stopped contributing to years ago may still carry cover, depending on when it was last active and the fund's rules.
A denial is not final. If your claim has been rejected, you have the right to an internal review, an AFCA complaint, and in some cases legal action.
Pre-existing condition exclusions are frequently applied incorrectly. Funds must meet specific legal standards before excluding a pre-existing condition. Many exclusions are applied in error and can be successfully challenged.
Do You Qualify to Make a Claim?
The eligibility criteria for a super insurance claim vary by insurance type:
For a TPD claim, you may qualify if:
You have superannuation in any fund, including inactive or multiple accounts
A medical condition, physical or psychological, has permanently prevented you from returning to work
You were working or had active cover when your condition began
You are under the fund's benefit age (typically 65 to 70, depending on the fund)
For an income protection claim, you may qualify if:
You were working at the time your condition began
You have served the policy's waiting period
Your condition prevents you from working in your usual occupation or any occupation, depending on the definition
For a terminal illness claim, you may qualify if:
You have received a medical diagnosis with a life expectancy under 24 months
Two medical practitioners have certified this, including one specialist treating your condition
If you are unsure whether your situation qualifies, Better Claim offers a free eligibility check with no commitment required.
How Better Claim Can Help
Better Claim helps Australians identify, understand, and access the insurance benefits they have been paying for through their superannuation. We handle the entire process from start to finish.
What we do:
Locate all super accounts and confirm insurance cover. Many Australians are unaware of inactive funds or cover held across multiple accounts. We find them.
Review your policy's TPD definition and eligibility criteria. We read the PDS so you do not have to. We identify which definition applies and whether your circumstances satisfy it.
Prepare and lodge your claim. We gather the right medical evidence, brief your treating doctors on what the policy requires, and submit a complete claim package to your fund.
Handle denials and appeals. If your claim is denied, we manage the internal review, AFCA complaint, and legal escalation if needed.
Better Claim works on a no win, no fee basis. There is no upfront cost and no fee unless your claim succeeds.
Frequently Asked Questions
How do I know if my super account is still active?
Log in to your fund's member portal or call them directly. You can also use the ATO's Find My Super tool via myGov to locate all super accounts registered under your tax file number.
What if I have not worked for a while? Can I still claim?
Possibly. Your entitlement depends on whether you had active insurance cover at the time your condition began, not whether you are currently working. Some funds cancel cover after a period of inactivity, but this is not universal. Better Claim can check your specific fund's rules.
Can I claim from more than one super fund?
Yes. If you have insurance under multiple super accounts, you can claim against each separately. Better Claim regularly manages simultaneous claims across multiple funds.
How much is the typical super insurance payout?
For TPD claims, the average payout in Australia is approximately $440,000, though benefit amounts vary widely based on your policy and when you joined the fund. Income protection payments depend on your pre-disability income and the benefit period in your policy.
Will making a claim affect my super balance?
Insurance payouts are separate from your accumulated super balance. TPD and life insurance benefits are paid into your super account and can be released to you. They do not reduce your existing super balance.
How long does a super insurance claim take?
Straightforward claims typically take 3 to 6 months. Complex or disputed claims can take 6 to 18 months. Better Claim manages the process throughout, so you do not need to chase your fund.
Start With a Free Check
If you have a serious illness, injury, or disability that has affected your ability to work, the cover in your super may be one of the most significant financial resources available to you. Most people who are eligible do not know it exists, and many who do know are not sure how to access it.
Better Claim checks your super insurance and eligibility at no cost. There is no commitment to proceed and no fee unless your claim succeeds.
This article is intended as general information only and does not constitute legal, financial, or insurance advice. Super insurance entitlements vary between funds and individual circumstances. Better Claim recommends seeking professional advice specific to your situation. For complaints or disputes, contact AFCA at afca.org.au.
