It would be easy to assume that insurance in super doesn’t cost you anything. After all, you won’t be sent monthly or quarterly bills to pay like you might with other types of insurance cover you take out.
Insurance in super is generally cheaper than insurance you might hold outside of your super fund, but it does still have a cost. We like to be super upfront with our members about that!
We retain 6% of each insurance premium to pay for admin fees but many other major funds charge between 12% and 20%. In case you were wondering, admin fees cover things such as assisting you at claims time if you need to make an insurance claim. As you get older, insurance costs may gradually and automatically increase, so we recommend doing your research as part of deciding on a fund and cover that’s right for you.
Page last updated 1 December 2023