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Default Insurance Through Your Super Explained (video)

Posted by Sean Callery August 21, 2018

When was the last time you reviewed your super? In particular, have you checked what life insurance policies you might be paying for by default?

There’s a chance that things like death cover, total and permanent disability insurance or income protection insurance could be included as part of your super without you knowing it.

Josh Callaghan, Canstar’s General Manager, Wealth, recently appeared on The Project and explained to viewers that it’s important to understand how much you’re paying for insurance and to know what it covers you for.

You start a new job, sign on to the default super policy with the default fund and presto – you could be losing hundreds of thousands of dollars thanks to default super insurance! If that's not enough to make you interested, have no fear, Super Tommy is here! #TheProjectTV pic.twitter.com/MBulvGykI7

— The Project (@theprojecttv) August 14, 2018

Compare super funds

The table below displays a snapshot of 5-Star rated super funds on Canstar’s database that include income protection insurance, sorted by provider name (A-Z). These Star Ratings are based on a 30-39 year old with a super balance between $100,000 – $250,000.

Compare direct life insurance

The table below displays a snapshot of direct life insurance policies on Canstar’s database, sorted by Star Rating (highest to lowest) and then by provider name (A-Z). These results are based on a female policyholder aged 30-39 years old.

Important Information

This advice is general and has not taken into account your objectives, financial situation, or needs. Consider whether this advice is right for you. Consider the product disclosure statement (PDS) before making any financial decision. For more information, read Canstar’s Financial Services and Credit Guide (FSCG).
Superannuation products displayed above that are not 'Sponsored' are sorted as referenced in the introductory text to the table. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. Products displayed above do not include all products/providers and may not include all features relevant to you. Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

Performance information shown is for historical periods up to 31/12/2018 and investment options noted in the product information. Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the maximum applicable ongoing management fees and membership fees. Performance information is provided by Rainmaker Information Pty Ltd ABN 86 095 610 996 AFSL 461816 (www.rainmaker.com.au) which provides general information on superannuation. Performance data may not be available for some products. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs and is not a recommendation for your particular circumstances. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. You may need financial advice from a qualified adviser.

Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated. The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product.

Investment returns of superannuation products: Canstar considers the annual investment returns of a product’s default investment option, including the default life-stage option where applicable. Where a product does not have a default investment option, annual returns for the investment option with the highest funds under management (FUM) and a 60-80% growth asset allocation are used.

Annual cost includes administration fees and indirect costs (including the investment fee, performance fee where applicable, and any other indirect management costs). This cost is calculated based on the super balance specified and the investment option considered in the 2018 Superannuation Star Ratings, which is the default investment option (including default life-stage options). Where a product does not have a default investment option, annual fees for the investment option with the highest FUM and a 60-80% growth asset allocation are used.

Performance and Investment Allocation Differences
• Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology that matches the age group you selected.
• Some providers use different age groups for their investment profiles which may result in you being offered or being eligible for a different product to what is displayed in the table. See here for more details.
• SunSuper’s allocation of funds for investors aged 55-99 differ from Canstar’s methodology – see details here.
• The Sunsuper for Life product may appear in the table multiple times. While you will not be offered any single investment option, this is to take into account the different combinations of investment options SunSuper may apply to your account based on your age. For more detail in relation to the SunSuper for Life product please refer to the PDS issued by SunSuper for this product.
• QSuper sets different balance ranges, resulting in a different investment mix in some cases to that resulting from Canstar’s methodology – see details here.
• Investment profiles applied initially may change over time in line with an investor’s age. See the provider’s Product Disclosure Statement and in particular applicable age groups for more information about how providers determine their investment profiles.
Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.
Direct Life Insurance policies displayed above that are not “Sponsored” are sorted by Star Rating and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. If you decide to apply for Life insurance, you will deal directly with an insurance provider, and not with Canstar.

Consider the provider’s detailed product and pricing information before making a decision to purchase a policy. The products displayed on this page do not include all providers and may not compare all features relevant to you.