Yes. Moneysmart’s guidance on insurance through superannuation funds, published 17 September 2026, says that, by law, super funds cancel insurance on accounts with no contributions for at least 16 months; figures checked 1 October 2026. Some super funds also have their own rules and may cancel insurance if the balance is too low.
What should I do before my cover ends?
Moneysmart says your fund will contact you before cover ends. When that notice arrives:
- Contact the fund, log in to your super account, or check your annual statement and product disclosure statement (PDS).
- Confirm what life, total and permanent disability (TPD) and income protection cover you have, including each amount, premium and end or cancellation date.
- If you want to keep the insurance, tell the fund or add money to that super account. Ask what action or contribution amount the fund requires; the published guidance does not state that every contribution will preserve or reactivate cover.
- Check your insurance before changing super funds or closing an account.
Keeping the cover may be particularly important if you have no insurance through another fund or insurer, have children or dependants, or work in a high-risk job.
Can a low balance cancel super insurance too?
Yes. Some funds have their own rules and may cancel insurance when the balance is too low, but the published Moneysmart guidance does not give one dollar amount that applies to every fund.
The $6,000 figure in Moneysmart’s 17 September 2026 guidance has a narrower purpose:
- For a new member under 25 or a balance under $6,000, insurance through super generally does not start automatically.
- You may need to ask the fund for cover.
- Some funds provide automatic cover for people in dangerous jobs, which can be cancelled if unwanted.
- If you already have insurance through super and the balance falls below $6,000, you will usually keep that cover.
Therefore, $6,000 should not be treated as a universal cancellation point. Ask your fund whether its own low-balance rules apply to your account.
What types and amounts of cover should you check?
Moneysmart says most super funds, except self-managed super funds, offer three types of insurance. The amounts are set by the relevant policy rather than by one standard figure in the cited guidance.
| Cover | What it pays | Usual ending point or payment period |
|---|---|---|
| Life cover, also called death cover | A lump sum or income stream for beneficiaries if you die or have a terminal illness | Usually ends at age 70 in super |
| Total and permanent disability cover | A benefit if you become seriously disabled and are unlikely to work again | Usually ends at age 65 |
| Income protection, also called salary continuance cover | Regular income if you cannot work because of illness or injury | Could be paid for 2 years, 5 years or up to a certain age |
Most funds automatically provide life and TPD cover to members aged 25 or over, while some also provide income protection. The guidance says this default cover is for a set amount and can usually be obtained without medical checks.
Check your annual statement for the amount you actually hold. If you want more cover, you may be able to increase it, but you will usually need to answer questions and may need medical checks.
What exclusions and loadings should you look for?
Read the PDS rather than relying only on the cover amount. It explains who the insurer is, what is covered, the claim rules, exclusions and any rules for pre-existing conditions.
Also ask whether your premium includes a loading. A loading is a percentage increase to the standard premium for a higher-risk classification, including:
- A high-risk job
- A pre-existing medical condition
- A smoker classification
If you believe the fund has classified you incorrectly, contact it and ask for a review. You could otherwise be paying more than necessary.
Should you compare super cover with insurance outside super?
Moneysmart recommends checking your super cover and comparing it with cover available outside super. The comparison should include the amount, benefit period, exclusions, premium, loading and age limits—not just whether cover exists.
For cover bought outside super, TPD still usually ends at age 65, but life cover may be kept as long as premiums are paid. Default super cover may provide less than cover outside super and may have eligibility rules. If you are over 60 or have a pre-existing medical condition, you may not be able to obtain the cover you want.
Premiums through super may be lower because funds buy cover in bulk and are generally deducted from your super balance rather than take-home pay. Depending on your circumstances, this may be more tax-effective than paying from after-tax income. Premiums still reduce your super balance, which can matter more near retirement because there is less time to recover.
If you hold policies through more than one super account, check whether you are paying more than one premium and whether you need multiple policies. Whether you can claim the full benefit from more than one policy depends on the policies.
This is general information, not financial or legal advice. Check the current official Moneysmart guidance and your policy’s PDS before changing your cover.
Sources
- Insurance through super — Moneysmart.gov.au, published 17 September 2026; checked 1 October 2026.
FAQ
Does any contribution automatically prevent cancellation?
Moneysmart says adding money to the super account is one way to indicate that you want to keep the insurance. The guidance does not state that every contribution amount will automatically preserve or restart cover, so confirm the requirements with the fund first.
Does a balance below $6,000 automatically cancel existing cover?
No. Moneysmart says existing super cover usually continues when the balance falls below $6,000. However, some funds have their own low-balance rules and may cancel insurance if the balance is too low.
Which super cover usually ends first?
TPD cover usually ends at age 65, while life cover usually ends at age 70. Income protection pays for a set period, which could be 2 years, 5 years or up to a certain age.
What if I have insurance through more than one super account?
You may be paying premiums on more than one policy, which can reduce your super balance. You may not be able to claim the full benefit from more than one policy, depending on the terms, so check whether your needs can be met through one fund.
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