Could Your Super Insurance Costs Be Increasing?

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:

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
  
  

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.