Insurance Inside Super
Many superannuation plans include insurance as part of their offer, as it may be a benefit to members of the super plan. Insurance inside super is often general cover that’s provided to a set group of people and can help protect them and their loved ones if something were to happen.
How it works
- Your insurance premiums are paid out of the money in your super account. So, it’s one less expense that you need to budget for from your take-home pay.
- As the insurance is held in your super account, any proceeds are paid to the super fund.
What’s group insurance?
When insurance inside super is provided to a set group of people, like employees of a company, it’s known as group insurance.
Group insurance is generally considered the number one way for Australians to access affordable cover1.
Getting group insurance also doesn’t usually require underwriting – a process of health and lifestyle questions insurance companies ask, to help them assess the suitability of cover for an individual. It’s important to note, though, that group insurance policies aren’t tailored to individual needs and circumstances.
Types of insurance attached to AMP super accounts
AMP offers three different types of insurance inside super.
Sometimes called death cover, life insurance
works by providing a lump-sum payment to your super account if you die or become terminally ill.
It can be used to help support your loved ones financially, with costs like a mortgage, or other debts as well as your family’s future expenses to help maintain their lifestyle when they need
it most. So, it’s important to consider who your super benefits will go to if you die.
Total and permanent disablement (TPD)
TPD cover provides you with a lump-sum payment
if you suffer a disability that prevents you from
ever working again.
This cover could help you pay for ongoing medical expenses, alterations to your home to make
day-to-day life easier, and help provide future financial stability.
TPD is generally only available if you also take life insurance and normally, the amount of your life insurance cover will be reduced by the amount of any TPD claim that is paid.
Temporary salary continuance (TSC)
Your ability to earn an income is likely to be one of your most valuable assets in life.
TSC, also known as income protection, is designed to pay a monthly benefit of up to 75% of your pre-disability regular income if you’re unable to work due to injury or illness.
Typically, within super, income protection provides you with cover either for a two-year period or until you turn 65.
To understand if you have insurance inside your AMP super account, check your member statement or login to login to My AMP. You’ll get a clear picture of your cover type, as well as the amount of cover you have, and its costs.
Understand your insurance needs
As life changes, your insurance needs may too. It’s important to regularly review your cover to make sure it continues to be right for you.
To understand your insurance needs, ask yourself how much money your family would have if you were to die or become disabled. Then compare that with how much money your family might need in the same situation – including how they’d manage paying for day-to-day costs like child care and mortgages. The difference between the two can give you some guidance for how much insurance you may need.