3 September 2026
Even if you've never thought about insurance through your super, you probably already have some. Its absence from your to-do list is so relatable – life’s hectic enough when you’re developing and educating young minds, without thinking about what’s going on in your super. But it’s still quietly covering you for worst-case-scenarios.
Most super funds (including GuildSuper) provide a basic level of insurance automatically, without you needing to apply for it or answer a single health question. If you’re aged 25 or older and have more than $6,000 in your super, there's a good chance your insurance cover has already switched on in the background. It’s easy to miss, because nothing about it feels different; no extra forms, no phone calls, just a line item sitting in your account.
While this may feel like a win, it’s also exactly why so many people are underinsured without realising it. Cover that switches on automatically is designed to be a reasonable starting point for an average member – not a personalised assessment of what you specifically would need. You also need to continue contributing to your super to keep your cover active, or let us know you want to keep your cover even though you are not regularly contributing to your account.
So, let’s start with the basics: what you’re actually covered for, what's missing, and why it works the way it does.
Insurance types in super
Most super funds offer up to three types of insurance, often bundled together. GuildSuper provides all three to eligible members.
Death cover (aka Life insurance) pays a lump sum to your family or nominated beneficiaries if you die. Confusingly, Life and Death cover are two names for exactly the same thing… it’s just usually called ‘life insurance’ outside of super, and ‘death cover’ inside super, appearing on super statements across Australia.
Example: Christine dies unexpectedly. Her Death cover would provide financial support for her loved ones. If she has set the right level of cover, this could mean her home loan is paid off and her family is financially supported despite losing her income.
TPD (Total and Permanent Disability) cover pays out a lump sum if illness or injury leaves you permanently unable to work. It’s usually bundled together with Death cover as a package.
Example: Mark develops a neurological condition that means he will no longer able to return to work and requires specialist care for the rest of his life. If he meets the insurer's definition of Total and Permanent Disability, his TPD insurance could provide a lump sum payment.
Income protection works differently again. Instead of a lump sum, it pays you a portion of your regular income (often up to 70-85%) or like Guild Super / Child Care Super a set amount for a set period of time if you’re temporarily unable to work. Some super funds include this by default; others offer it as something you switch on yourself.
Example: Priya needs six months off work while recovering from breast cancer treatment. If she has Income Protection insurance and meets the policy conditions, it could replace part of her income while she's unable to work.
Between them, these three types cover the two big financial risks of working life: not being able to work for a while, and not being able to work again at all.
What’s not included
Outside of super there are lots of other ways to protect yourself against poverty and adversity. Many employed people take out separate funeral, redundancy, or trauma / critical illness, which protect you against similar scenarios in different ways. These aren’t generally offered by super funds, but do cover some gaps.
Funeral cover means that your funeral costs don’t have to come out of your Death cover.
Redundancy cover can keep a roof over your head while you look for new work.
Trauma or critical illness cover pays out on diagnosis of a specific serious illness, like cancer or a heart attack, and can help cover specialist treatment until you return to work.
Superannuation law only allows insurance that pays out under a specific set of conditions: death, permanent incapacity, or temporary incapacity. Trauma insurance works differently again, because superannuation law only allows certain types of insurance to be held inside super. We'll unpack why – and whether trauma cover might be worth considering separately – in a future article.
Lower-cost insurance
Insurance through super tends to be more affordable than buying the same cover on your own, for two reasons. First, funds buy cover in bulk on behalf of all their members, which brings the price down in the same way any group discount would. Second, premiums are usually paid from your super balance before tax, instead of from your take-home pay – which makes the same dollar of premium stretches further.
The trade-off is worth knowing too; those premiums come out of your super balance, so they’re quietly reducing what you'll retire on. And if you ever need to make a claim, it can take a little longer to reach you than a standalone policy would, because the insurer pays your super fund first, which then pays you.
How much do you need?
Automatic cover is a genuinely good safety net, but it’s sized for an average member, not for your actual situation. Research into underinsurance in Australia consistently finds that default cover, particularly for TPD, tends to fall well short of what people would actually need if they had to rely on it, especially if their circumstances change. It’s not that the system is broken, it's that ‘default’ was never meant to mean ‘exactly right for everyone.’
More cover isn't always better, though. Higher levels of insurance tends to mean higher premiums, which come out of your super balance. That’s why it’s worth checking your cover matches your needs, rather than simply choosing the highest amount available.
The good news is that checking where you stand takes a few minutes, not a few hours. By simply logging into your super account and looking up what cover you currently hold – type, amount, and whether it matches anything close to your situation.
To actually work out how much cover you need, try our Insurance Calculator. But it’s important to know what ‘too much cover’ looks like – because that’s a real cost, too.
To get started, click the links below to explore our insurance pages, then log in to your super account and just see what's there. Many people who do this for the first time are surprised – either by how much they're covered for, or by how little.
You don't need to become an insurance expert overnight. Simply understanding what cover you already have is a great first step. Once you know what's there, you'll be in a much better position to decide whether it still suits your life today.
All information is general and does not take account of your personal objectives, financial situation or needs. Before deciding whether a particular product is appropriate for you, please read the relevant Product Disclosure Statement including any incorporated information, Target Market Determination and Financial Services Guide available at guildsuper.com.au, and consider speaking with a GuildSuper Coach or financial adviser.
FAQs
I never applied for insurance in my super. Do I still have it?
You will automatically have default-level cover if you:
are over 25.
have more than $6,000 in your super.
have received an employer contribution, personal contribution, or rollover into your super in the past 16 months.
Many Australians are not across what cover they have, or how much they need. Default-level cover is decided by your fund, age and other variables – but you can check how much cover is right for you and adjust accordingly.
Does insurance in your super only cover accidents at work?
No, this is a common myth. If you are diagnosed with a life-changing illness or injury for any reason, your super cover may be able to help under the ATO’s Conditions of Early Release.
What’s the difference between Life insurance and Death cover?
Only the name! The insurance inside your super is called Death cover. Outside of super, it’s sold as Life insurance. You can have both, and buy as many Life Insurance policies as you like.
If I injure myself at work, am I covered through my super?
If your super includes Income Protection (helps cover lost wages during temporary time off work) or Total and Permanent Disability (TP) cover (for severe, lasting illness or injury), this applies whether or not the injury happened at work. Super cannot include trauma / critical illness cover, which needs to be purchased separately and pays out a lump sum in the event of specific, severe medical events.
Do I need more insurance than the default cover?
Default cover is designed as a generic, low-cost safety net. It may not provide enough support for your family or lifestyle needs, and many Australians are unknowingly underinsured. Use our insurance calculator to help work out how much cover you need based on your circumstances.