An Australian super fund income protection policy helps you stay afloat in times of need. Families with school-going children or single-income homes are especially vulnerable to salary loss. Even a temporary gap in salary payouts can wreck carefully planned goals. Income Protection cover provides up to 75% of your regular salary for a certain period if you find yourself unable to work due to illness or injury. With this type of insurance cover, you can take care of most of your everyday expenses, including rent or mortgage repayments, bills, and even groceries.


Did you know you can get insurance cover for your salary as part of your superannuation fund? Protective insurance through your super is a great way to get the cover you might not otherwise be able to afford in a stand-alone policy. But you must be aware of the limitations of such an arrangement. Even though several factors guide insurance cover through the super account, it comes loaded with easy, assured benefits for your dependants. These insurance premiums are also often more affordable than stand-alone policies. In addition, you can choose the features you want to incorporate and the payout duration. By placing the choice in your hands, you control your super funds and future.


Most people are optimistic and believe that they will be able to earn an income throughout their lives, most certainly up until retirement age. However, we live in a world of uncertainty, and something unexpected can happen at any time. For example, ask yourself how you would cope if the unthinkable occurred and you could not work for a while.

Would the interruption of your ability to earn put yourself and your loved ones at risk? If you could not make an income for a period, would you be able to eat, pay your debt and expenses, and keep up your present quality of life? If the answer is no, it may be the right time to investigate income protection insurance.

Most Australian workers and employees have some level of income protection through a separate income protection insurance policy or as part of their superannuation fund. Income protection can be an enormous help in time of need.

This need can include becoming ill or sustaining an injury at any time in your life. In the process, the chances are that you will be unable to work temporarily. As part of your super, income protection will provide monthly payments to support you while you cannot earn your regular salary.

Income protection is one type of life cover that insurance companies offer you as part of your super fund. Some insurers also refer to it as salary continuance cover. However, it is essential to understand that the income protection it offers is not unlimited. If you become ill or are injured, the fund will only pay you a regular income for a specified period. This payment arrangement varies from fund to fund and between insurers.

For example, payment periods can be two or five years or may pay out only until a certain age. It is also essential to understand that income protection as part of your super will not pay your entire salary but will only pay you up to 75% of your current monthly earnings or income. Everyone can agree that this percentage is better than not receiving any financial assistance.

In some cases, a super fund will provide income protection automatically. However, this is not by default. For example, your superannuation fund attracts automatic death and total and permanent disability insurance cover. However, income protection is not always automatically included when joining a super fund. Instead, you may need to apply separately for income protection cover in your fund membership.

Most superannuation funds offer some level of income protection as an optional extra to their members, so it may be in your best interest to check with your fund to see if they have this option available. An easy way to do this would be to look at a recent superannuation statement. If you have any doubts, then follow up with your fund provider, who will be able to assist you and answer your questions.



There are two ways that you can fund income protection insurance:

  • You can pay for the entire amount using your super balance, and you can generally use any super fund in Australia to pay for your income protection policy. This tactic avoids changes to cash flow needs as you only use super money.
  • The second way to fund income protection is to pay directly from your bank account or credit card. There are pros and cons to doing this, and the policies can vary between super-owned policies and policies funded outside of the super environment. We would strongly suggest giving us a call to discuss your options before deciding between the two.


AustralianSuper, like all super funds in Australia, allows you to apply for a level of personal insurance cover within the fund. This benefit is generally “group insurance.” However, many people don’t know that you can take out an insurance policy through any retail insurance provider on our website and fund the premium from your existing super fund, for example, AustralianSuper. For more information, contact an insurer today on our website because you have the freedom to shop around for cover and consider alternatives without disturbing existing policies.

Choosing a policy
Income Protection can prove vital should your family's primary breadwinner fall seriously ill or become injured. To make sure you have the right policy to meet your individual needs, contact one of our Wealth Smart advisors. They can help you find the best Income Protection policy to get covered for job loss with their knowledge and expertise. If you're looking to incorporate an Income Protection policy into your super or want help to increase your current level of cover, contact us for professional, personal advice today!