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What’s the difference between life insurance through super and life insurance through a provider?


Whether you're just considering life insurance cover for yourself, or cover that includes your loved ones, you have a few options on your plate. Two of these are life insurance through your super fund and life insurance through a provider like AAMI.

Here are some of the differences between life insurance through super vs life insurance through a provider.

What is 'life insurance through super fund'?

This means paying your Life Insurance premiums with money that's sitting in your super fund and generally getting the default level of cover offered. Super funds usually cover total or permanent disability and death.

What is 'life insurance through a provider'?

You can also choose to take out life insurance with an insurance provider, like AAMI. You'll be able to select from a broad range of covers, as well as basic to premium levels of cover, and you'll pay the required premium out-of-pocket. Because the policy is entirely set up and managed by you, you can personalise it to meet your needs and budget. For example, someone who set up their AAMI life insurance with a low level of cover when they were young, carefree and had zero dependants can easily increase their cover when they tie the knot or have a baby.

Why choose life insurance through super?

Because super funds often purchase policies in bulk, the premiums on the policies can be cheaper. These premiums are also automatically deducted, meaning you have one less monthly bill to remember. Often life insurance through super has automatic acceptance without the need for medical questionnaires or examinations.

Why choose life insurance outside super?

You generally have more flexibility around your kind and level of cover when you have life insurance through a provider. This means you can adjust the contribution amount to increase the cover, so that whatever happens, you and your family's needs are met.  Any benefits you need are delivered quicker by a provider because the benefit amount is passed directly to you rather than via your super fund.

Which is better?

Well, it comes down to what you need, what you can afford, and the benefits or limits you require. If you've got an underlying medical condition, it's possible that you may prefer life insurance through a provider to ensure you've got cover for it.

If you're not sure about the kind or level of cover you need, check out AAMI's Life Insurance comparison table . You can also use our Life Insurance calculator to work out how much cover you might need, or give us a call on 13 22 44 (Monday to Friday, 8am – 8pm AEST).

AAMI Life Insurance is issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530, AFSL 229880 and is distributed by Suncorp Financial Services Pty Ltd ABN 50 010 844 621, AFSL 229885 under the AAMI brand. Information provided is general advice only and has been prepared without taking into account your personal objectives, situation and needs. Eligibility for cover and the payment of any benefit are subject to the relevant terms and conditions including no claim and waiting periods, exclusions, limits and eligibility conditions.  Read the AAMI Life Insurance Product Disclosure Statement available at and consider whether it is appropriate for you before making any decisions about whether to buy or continue to hold a product.