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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 products, other than in some circumstances the Redundancy Benefit, are provided by either Asteron Life & Superannuation Limited ABN 87 073 979 530, AFSL 229880 (Asteron) or by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). Both Asteron and TAL Life are part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies use the AAMI brand under license. Redundancy Benefit issued on or before 31st March 2020 was offered by AAI Limited ABN 48 005 297 807, AFSL 230859 (AAI) trading as AAMI which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 will be issued by Asteron Life and Superannuation Limited, ABN 87 073 979 530, AFSL 229880 (Asteron). Suncorp Group is a distributor of products issued by Asteron and TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.
Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement.