Best-value Death Insurance in Super

GOLD WINNERS VISION SUPER & VIRGIN MONEY SUPER

Death cover in super can be good value, but make sure it suits your circumstances, especially if you’re young

There have been big changes to insurance in super in 2020. Since October, if you are aged under 25 or have a fund balance of less than $6000 you are no longer automatically signed up for insurance in super.

The change was made to prevent insurance fees eating away at balances when cover was not required or when members entered into it by default.

But if you want some form of life insurance because you have shared debts or dependants, you are able to opt in for group insurance.

Many people still don’t realise that they have insurance in their super, while others think they are covered for more than they are. But insurance in super can be good value that can help you and your family endure bad times.

Group insurance through your MySuper fund is usually cost effective, but unlikely to be transferable, so this should be a consideration if changing or consolidating funds. Typically these policies are based on age and group characteristics, including the industry in which you work.

This category recognises super funds with the cheapest death insurance for men and women; there are different winners because there are different underlying assumptions in price for the risk of men and women. Clearly, men are judged to be a higher risk in most age groups.

The difference in comparing super funds typically is for the amount of insurance required. In our tables, funds are assessed for white-collar professional rates, for $300,000 of cover, and at the different ages of 30, 40 and 50 for men and women.

If you need more or less insurance, you will need to do your own comparisons between funds – each fund usually has an insurance calculator.

The winner of the Best-Value Death Insurance in Super for men, Vision Super, also features in the top three in the women’s category and was the winner of the Best Value Insurance in Super for women (see previous page).

Virgin Money Super has been judged to have the BestValue Death Insurance in Super for women, and also features in the finalists for the Best-Value Insurance in Super for men.

Stephen Rowe, Vision Super’s chief executive, says he’s delighted to see the fund’s efforts to maintain the best value insurance product recognised in the Best of the Best.

Also featuring on the table for Best-Value Death Insurance in Super (men) is Christian Super (second for the second year running), VicSuper Future Saver and QSuper Accumulation Account. In the women’s category, AMG Super, Hostplus and Bendigo SmartOptions Super are also finalists.