Should I get insurance inside or outside of super?

PERSONAL insurances provide a safety net that can cover expenses related to accidents, illnesses, or other unforeseen circumstances.

This ensures that you and your loved ones are financially secure even during challenging times.

Appropriate cover is most important for those with debt and dependents and is something that should be reviewed as people get older, given their need for cover generally reduces.

When considering cover, there are two main options.

Group cover

This cover is typically provided automatically through each super fund, based on the person’s age, employment type or income. It’s cost-effective and convenient, with no health checks required upfront. However, because it’s not underwritten (health check), there is no guarantee people are fully covered until they need to claim—when the insurer may investigate and potentially limit or deny the claim.

Other features and benefits of group cover include:

Automatic acceptance: no medicals or detailed forms required up to certain limits, making it easy to get started

Lower initial costs: group cover is often a vanilla product spread across a large pool of members, helping keep cover affordable in the early years.

Convenient payment via super: premiums are automatically deducted from the super balance, which reduces impact on personal cash flow.

Underwritten cover

With this type of cover, people are underwritten at the time of application based on their health, occupation, and lifestyle. This ensures everyone pays a fair cost for the cover they need—those with higher risk may pay more or have exclusions applied.

Importantly, underwriting locks in the terms of cover. It also means the insurer can’t reassess eligibility at claim time—they’ve already insured based on the information provided, even if the claim happens 10 or 20 years later.

Additional features and benefits of underwritten cover include:

Access to Trauma Insurance, which is not available through most super fund group policies

Broader definitions that make it easier to successfully claim

Portability: the policy stays with you, regardless of job changes or super fund switches, offering continuity of cover

Customisation: cover amounts can be tailored, waiting periods, benefit periods, and add optional features (like inflation protection or business cover) to suit personal needs

Guaranteed renewability: once in place, the insurer can’t cancel cover if premiums are continued to be paid —regardless of changes to health

Clear ownership structures: You can choose to own the policy personally, through super, or via a split structure, giving more control over tax, cash flow and estate planning.

Faster claims turnaround: because underwriting is done upfront, generally there’s less investigation needed at claim time, potentially leading to quicker payment outcomes.

There is no one size fits all option for personal insurances.

For people who are seemingly healthy and have basic insurance needs, group cover may be appropriate.

For people with pre-existing health issues, family history, or perhaps require a more customised policy, underwritten insurance is suitable.

Don’t wait until it’s too late. Schedule an insurance review with Will Raleigh and take the first step towards a secure and worry-free future.

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