Super-Smart, Super-Simple: The Insurance Option Every Woman Should Know About

When it comes to financial planning, insurance is often the part that gets pushed to the bottom of the to-do list—especially for women juggling careers, families, businesses, and everything in between. But here’s the truth: protecting your future is just as important as building it.

One of the easiest and most cost-effective ways to do that? Using your superannuation fund to access life insurance and TPD (Total and Permanent Disability) insurance.

Let’s break down how it works, why it matters, and how you can take advantage of this powerful option—without cutting into your day-to-day cash flow and without eating into your future retirement savings.

First, What Is Life Insurance and TPD Insurance?

• Life insurance pays out a lump sum to your beneficiaries if you pass away or are diagnosed with a terminal illness.

• TPD (Total and Permanent Disability) insurance provides a payout if you become permanently disabled and can no longer work.

These types of insurance give you and your family a financial safety net during life’s worst-case scenarios. Outside of super, they can be expensive—especially for women who may earn less or work part-time. But through your super fund, they can become much more affordable.

Which Super Fund Is Best For Me?

As a woman—and especially as a single mum—every dollar you put toward your future counts. That’s why choosing a reputable superannuation fund with low fees is so important. The right fund won’t just protect your hard-earned money—it will help it grow.

High fees can quietly chip away at your super over time, but a well-performing, low-fee fund helps ensure your savings are working for you. Look for funds with strong long-term returns, transparent fee structures, and flexible options that suit your stage of life. Trusted funds like AustralianSuper, HESTA, Aware Super, and Hostplus are often recommended for their consistent performance and low costs.

As a single mum, your future—and your children’s—deserves the security and peace of mind that comes with smart financial choices. You’re already doing the hard work; make sure your super is doing its part, too.

I’ve personally been with AustralianSuper since moving to Australia in 2011, and they’ve delivered consistent investment growth, low fees, and clear transparency around how my money is being managed. It’s given me real confidence in my financial future.

That said, everyone’s situation is different—so I encourage you to do your own research and find a fund that aligns with your goals and what’s best for your family. Empower yourself with the right knowledge to make smart, future-focused choices.

How Much Life Insurance Do You Actually Need?

There’s no one-size-fits-all answer, but a helpful rule of thumb is this:

Aim for 10 to 12 times your annual income.

So if you earn $80,000 a year, your recommended life cover might be in the ballpark of $800,000 to $960,000.

This ensures your loved ones could maintain their lifestyle, pay off debts, and cover future costs like education or medical care.

You should also consider:

• Any outstanding mortgage or personal debts

• The cost of raising children or caring for dependents

• Funeral and medical expenses

• Your partner’s ability to work or earn without your income

Your super fund may offer a default level of cover, but often, it’s far below what’s truly needed. Taking the time to top up your cover can make all the difference.

Why Use Your Super Fund for Insurance?

Many Australian superannuation funds automatically include life and TPD insurance, often at a reduced group rate. This makes it a smart and accessible option for women at all life stages.

Here’s why it’s worth considering:

• Lower cost: Premiums are often cheaper than standalone policies thanks to group buying power.

• No upfront payments: Premiums are deducted directly from your super account, not your weekly pay.

• Smoother application process: Some funds don’t require extensive health checks for default cover.

• Convenience: Coverage may already be in place—you just need to check and manage it.

Important Tip: Offset Insurance Costs with Extra Contributions

While paying insurance premiums from your super is convenient, keep in mind those premiums reduce your super balance over time, which means less money at retirement if you don’t plan accordingly.

The solution?

Wherever possible, consider making extra contributions to your super to cover the cost of insurance. This way, you protect your future and preserve your retirement savings.

You can do this through:

• Salary sacrificing a small amount from your pay

• Making voluntary after-tax contributions (which may even qualify you for a tax offset or government co-contribution, depending on your income)

Even $10–$20 a week can make a meaningful difference over time.

I put an extra $80 per fortnight into my super fund to cover the cost of my insurance. This means I can still grow my investment portfolio without premiums and fees eating into my ongoing contributions.

Don’t Overpay: Check Your Work Rating

Most people don’t realise that your occupation rating directly impacts your insurance premiums within super.

Super funds typically classify members into categories such as:

• Standard or Blue Collar: Higher physical risk, higher premiums

• White Collar: Office-based work with minimal risk

• Professional or Low Risk: Advanced qualifications or desk-based roles with low exposure to hazards

If your job is low-risk, but you’re paying “standard” premiums, you’re likely overpaying.

What to do:

• Log into your super account and check your current work rating

• Update your occupation details if they’re out of date

• Contact your fund for support—they may be able to reclassify you and reduce your premiums

The Female Factor: Why This Matters for Women

Women often face unique financial challenges—such as career breaks for caregiving, part-time work, and longer life expectancies—which makes insurance coverage even more critical.

When I separated from my ex-husband at 29, I’d only been back in the workforce for a year. I’d spent the previous four years as a stay-at-home mum, raising our family—something I’ll always be proud of. But during that time, I missed out on thousands in superannuation contributions. And when we eventually divorced, I made the decision not to claim any of his super.

Looking back, I realise how much that choice impacted my financial future.

What I’ve learned is this: your future matters just as much as your present. And making smart, informed decisions—especially around money, super, and security—isn’t just important, it’s essential.

Insurance through super can help:

• Protect your income if something unexpected happens

• Cover debts, household costs, and future expenses

• Ensure your family is looked after financially

It’s a practical safety net that supports long-term security without placing pressure on your day-to-day budget.

Don’t Forget to Nominate Your Beneficiaries

This one is often overlooked but so important: make sure your super and insurance payouts go to the right people.

When you set up or update your life insurance through your super, always nominate your beneficiaries—and make sure the nomination is:

• Current (review it every couple of years or after life events like marriage or divorce)

• Binding, if possible (this gives your nomination legal weight, so your wishes are followed)

To ensure your superannuation is distributed according to your wishes when you pass away, you can make a Binding Death Benefit Nomination. This legally binding nomination directs your super fund to pay your benefit to your chosen beneficiaries. To make it valid, the nomination must be in writing, signed and dated in the presence of two independent witnesses (who are not named as beneficiaries), and submitted to your super fund. Most nominations are valid for three years and must be renewed to remain binding, though some funds now allow non-lapsing nominations. It's important to check your super fund’s specific rules, as each may have slightly different requirements.

How to Get Started

1. Log into your super fund portal and review your insurance cover

2. Check your occupation rating—update it if needed to reduce premiums

3. Calculate how much cover you actually need using the 10–12x income rule

4. Set up or update your beneficiary nomination

5. Start making small extra contributions to cover premiums and protect your super balance

6. Seek advice if needed—your fund or a financial adviser can help tailor your setup

Final Thoughts

Using your super to access life and TPD insurance is a smart, often underused financial strategy—especially for women who want to protect their families, their income, and their long-term financial independence.

Take the time to review your setup. Make sure you’re not overpaying, under-covered, or letting your insurance eat away at your future. A few small tweaks today can make a powerful difference tomorrow.

Need a simple checklist or want help reviewing your setup?

Reach out to your fund, a financial coach, or a licensed adviser who can guide you through it.

Your money should work for you—and that includes protecting the life you’re building.