Wealth Management Business Essentials

Could Your Super Insurance Costs Be Increasing?

2 min read

30 April 2026

Takeaways:

Super insurance premiums are rising across the industry, with funds like AustralianSuper increasing costs significantly.
Many Australians may be unknowingly overpaying or holding outdated, duplicated, or unsuitable cover within their super.
Insurance inside super is often complex and “set and forget,” making it easy to miss key details like coverage levels, exclusions, and costs.
Reviewing your insurance now can help ensure appropriate cover, reduce unnecessary premiums, and better align with your financial goals.

Could Your Super Insurance Costs Be Increasing?

Insurance premiums within superannuation funds are on the rise across the industry, with many providers reassessing pricing structures in response to changing economic and demographic conditions. While these adjustments are not uncommon, they often occur quietly in the background, meaning many Australians may not realise how much they are paying, or whether their cover still aligns with their needs.

For example, from 30 May, AustralianSuper has announced premium increases of up to 40% across certain insurance options, highlighting a broader trend affecting super fund members nationwide. As one of Australia’s largest funds, these changes serve as a timely reminder for individuals to review their own arrangements, regardless of their provider.

Why Are Insurance Costs Increasing?

Across the superannuation landscape, insurers are facing a range of pressures that are driving higher premiums, including:

Rising claims, particularly for Total and Permanent Disability (TPD) and income protection
Longer life expectancies, increasing the duration of potential payouts
Higher reinsurance costs
Ongoing economic and regulatory changes

As a result, many super funds are adjusting their insurance offerings and pricing, which can lead to higher costs being passed on to members.

For individuals, this may mean a greater portion of their super balance is being allocated toward insurance premiums, potentially impacting long-term retirement outcomes if left unchecked.

The Hidden Complexity of Insurance in Super

Insurance held within super is often “set and forget,” but it can be more complex than it appears. Typically, cover may include:

Life insurance (death cover)

Total and Permanent Disability (TPD) cover

Income protection insurance

However, important details such as levels of cover, policy definitions, waiting periods, exclusions, and premium structures are often not well understood.

Because this insurance is commonly provided by default, many individuals:

Aren’t aware of how much cover they actually hold
Haven’t reviewed whether it suits their current life stage
May be paying for duplicate or unnecessary policies
Could be overpaying for cover that doesn’t fully meet their needs

Why a Review Matters Now

With industry-wide premium increases becoming more common, now is an ideal time to take a closer look at your insurance within super.

A review can help ensure:

Your level of cover is appropriate
You’re not paying for unnecessary or duplicated policies
Your premiums are competitive
Your insurance aligns with your broader financial goals

How Kelly+Partners Private Wealth Can Help

At Kelly+Partners Private Wealth, we understand that insurance can be complex and often overlooked. That’s why we are offering complimentary insurance reviews designed to give you clarity and confidence around your cover.

Our advisors can:

Break down your existing insurance in plain language
Assess whether your current cover is still suitable
Identify opportunities to optimise your premiums
Provide tailored recommendations based on your needs

Take Control of Your Insurance

As insurance premiums continue to shift across the super industry, inaction could result in paying more for cover that may not be aligned with your current circumstances.

Taking the time to review your insurance, especially with professional guidance, can help ensure you’re adequately protected while making the most of your super.

If you’d like to better understand your cover or explore potential savings, consider booking a complimentary review with Kelly+Partners Private Wealth. Please reach out to leanna.katsikaris@kellypartnerswealth.com.au or click the button below to get in touch.

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