Life insurance and super – do you have the cover you need?

ARTICLE

7 September 2026

3 min read

Many Australians have some form of protection in place whether through their superannuation fund, private health insurance or workplace benefits. While these can provide valuable support, the level and type of cover available can vary and may differ from person to person.

Understanding what cover you have in place may help you better understand how different forms of protection may apply to your circumstances. Let’s look at some common assumptions and why it’s important to understand exactly what cover you have in place.

Isn’t that what workers’ compensation is for?

Workers' compensation is designed to support eligible work-related claims. Workers' compensation can provide valuable support in certain circumstances, although the scope of cover and eligibility requirements will depend on individual circumstances and applicable legislation:

Generally isn’t available to self‑employed people.
It generally doesn’t cover serious accidents that happen outside of work.
It doesn’t cover illnesses that aren’t work related.

Workers' compensation can play a vital role, but it may not provide for every situation.

Doesn’t Medicare cover me in an emergency?

Medicare is designed to provide access to health services. Medicare can help cover some medical costs if you're injured or ill. The range of benefits available and any out-of-pocket costs will depend on your circumstances, and Medicare does not provide income replacement.

I’ve got private health insurance

Private health insurance can be an important part of your overall protection strategy, helping fund hospital stays and some rehabilitation costs. Private health insurance is designed to assist with certain healthcare costs, however, it doesn’t replace lost income or help meet ongoing financial commitments if you're unable to work.

The government is my safety net

Government social security payments may provide a base level of financial support to eligible individuals, subject to applicable eligibility criteria and payment limits, however, the level of support available may differ from an individual's existing income, expenses and financial commitments.

I have insurance in my superannuation

Many superannuation funds provide either default or voluntary (opt in) life insurance cover as a member benefit, which can provide a valuable foundation to your protection needs. The level, type and structure of cover can vary between superannuation funds and individual members.

If you have insurance through your superannuation, you may wish to consider some of the following questions:

Is the insurance benefit separate from your super balance or does the quoted benefit include both your insurance cover and your accumulated super?
What type of cover is included? Does it only provide cover if you pass away or does it include total and permanent disability cover and income protection/salary continuance cover?
Will you receive a lump sum payment if you suffer a serious injury or illness?
Is your sum insured amount reducing as you get older?
Has your cover kept pace with changes in your income, debts and family responsibilities?

Factors people may consider when reviewing insurance cover

When reviewing insurance arrangements, some people choose to consider factors such as household expenses, income needs and financial commitments.

Other factors may need to be considered, such as: savings and investments, debts, interest rates, future education expenses and inflation.

As income, debts and family circumstances change over time, some people choose to review their insurance arrangements periodically to understand whether the cover they hold remains aligned to their circumstances.

Get affordable, flexible life insurance cover

With AIA Priority Protection, you can apply online in minutes with no medicals or complicated paperwork.

AIA Priority Protection offers a range of cover options that may assist individuals seeking life insurance cover, subject to eligibility criteria, policy terms and conditions.

It’s a simple way to help protect what matters most, plus you’ll receive a 5% discount when you purchase online.

Disclaimer:
Copyright © 2026 AIA Australia Limited (ABN 79 004 837 861 AFSL 230043). This is general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, medical, nutritional, health, fitness or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors. The source information of the articles is current as of the date of publication and may be subject to change. While the information contained herein is believed to be accurate, AIA Australia expressly disclaims any and all liability for representations or warranties, expressed or implied, contained in, or for omissions from, the information.