Superannuation Life Cover
Preparing for the inevitable is preparing for life. Superannuation Life Cover can pay out a lump sum to provide financial security for your loved ones when you no longer can. It can be used to settle debt, outstanding loans and other financial costs.
Paying for your life cover via your super can be a convenient and tax-effective way of protecting you and your family.
Assess Your Insurance Needs
Use this calculator to work out how much cover you may need.
Find an adviser near you
If you would like to talk about your life insurance needs, we can put you in touch with an adviser in your area
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Email link:
au.adviserservices@aia.com
Superannuation Life Cover
Why it’s worth considering
Superannuation Life Cover offers life cover through your super account where the Trustee (either a Self Managed Superannuation Fund (SMSF) or the AIA Super Fund) of the super fund owns the insurance policy. A lump sum will be paid to your trustee in the event of death or a diagnosis of a of a terminal illness.
Superannuation PLUS provides Total and Permanent Disablement and Crisis Recovery benefits outside of super. It lets you retain direct ownership of the Total and Permanent Disablement and Crisis Recovery benefits whilst paying a reduced premium. It means a lump sum will be paid directly to you upon permanent disablement or the diagnosis of a listed crisis event.
- Superannuation Plus
- Total and Permanent Disablement
- Crisis Recovery
- Complimentary Interim Accidental Death cover
- Choice of payment options
- Download
Product Disclosure Statement
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Making the most of your Superannuation Life Cover
Complimentary Interim Accidental Death Cover
While your application is being assessed, we will provide Complimentary Interim Accidental Death Cover.
Premium Freeze
Allows you to select to pay the same premium as you paid the previous year by reducing your Sum Insured before the Policy Anniversary date.
Benefit Indexation
The Sum Insured on your policy will automatically increase each year by the Consumer Price Index (CPI) or 5%, whichever is higher.
Guaranteed Future Insurability
You can apply for increases in your cover without supplying further evidence of health when you experience a ‘personal event’ or a ‘business event’ before the age of 55.
Terminal Illness Benefit
If you are diagnosed with a terminal illness before your policy expires, we will pay you 100% of your life cover.
Advantages of Superannuation Life Cover PLUS
- Flexible policy ownership
- Potential for tax deductibility of the Life Cover benefit within Super
- Bundled pricing
- One policy fee even though two policies are issued
- Total and Permanent Disablement and Crisis Recovery benefits can be held outside Super
- Permanent Disablement can be held within Super – potential for tax deductibility of premiums
Superannuation Life Cover Overview
| Life Cover benefit | Term Cover benefit | Accidental death benefit | |
|---|---|---|---|
| Entry age (next birthday) | 11 and 74 | 11 and 60 (5 year term) 11 and 55 (10 year term) |
16 and 74 |
| Expiry age (policy anniversary prior to age) | 75 | End of chosen benefit term (5 or 10 years) | 75 |
| Premium options | Level, Stepped and Optimum | Level and Stepped | Level |
Read Sandra’s story…
Sandra is a 45 year old Senior Sales Manager married with two young children, she wants to ensure her family are looked after should something happen to her. She and her husband Brian still owe $200,000 on their mortgage something Sandra wants to make sure is covered if something unforeseen happens to her. In addition, Sandra wants to ensure their children’s educational costs will be covered. Her adviser suggests she takes out insurance through her AIA Superannuation Fund as it is tax-effective way to pay for premiums since they are paid for out of contributions made by her employer (including any personal contributions she makes). Sandra decides to take out superannuation Life Cover benefit for $500,000. 2 years later, Sandra is involved in an accident and dies. As Brian is Sandra’s beneficiary, he receives her Life Cover payment of $500,000.
Brian is able to pay off the remaining costs of their mortgage ($100,000) and he is also able to afford to take time off to look after the children and when he goes back to work he is able to do so part time.
$300,000 of Sandra’s Life Cover is subsequently re-invested, after Brian consults an Adviser on how to ensure the growth of the children’s education fund.
The financial assistance Brian received during this difficult time ensured that he was able to concentrate on looking after his children without financial concern.