Often not. Default cover in super is designed for a broad population, not your debts and dependants. Also check you still have it: default insurance is generally switched off for accounts inactive for 16 months, and is opt-in for members under 25 or with balances under $6,000. Log in and check your cover amounts and definitions today.
What it depends on
The full answer depends on your specific circumstances. Here’s what matters.
Your debts and dependants
A common starting point is enough life and TPD cover to clear debts and support dependants for a period. Default amounts are frequently well below that for people with mortgages and children.
The definitions
TPD cover in super may use an "any occupation" definition, which is harder to claim on than "own occupation". Income protection in super typically has shorter benefit periods.
The cost to your retirement balance
Premiums reduce your super balance. That can be efficient, but for younger members the compounding cost over decades is real.
The last 10%
What a qualified professional can add
The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.
- Calculating a cover amount based on your debts, income and dependants
- Comparing super-held cover with personally held cover on definitions and cost
- Consolidating super accounts without accidentally losing cover you need
Questions to ask before you engage one
If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.
How much life, TPD and income protection cover do I have now, across all my funds?
Is my TPD definition own occupation or any occupation?
What happens to my cover if I roll over or consolidate funds?
What does this cover cost my balance per year?
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General Advice Warning
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640) and should not be relied upon as a substitute for professional advice. Consider whether the information is appropriate before acting on it. Read our Financial Services Guide.