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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 Guide (FSG).
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 30/6/2018 and investment options noted in the product information. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown. 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. 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.
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.
Products displayed above that are not “Sponsored” are sorted by Star Rating and then alphabetically by company, aside from the Trauma Insurance and TPD Insurance tables which are sorted by Estimated Monthly Premium. 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. View the Canstar Life Insurance Star Ratings Methodology and Report, or the Direct Income Protection Star Ratings Methodology and Report. The rating shown is only one factor to take into account when considering products.