When we think of financial planning, we often jump to investing, budgeting, or saving for retirement. But there’s another crucial piece of the puzzle—one that often gets overlooked until it’s too late:
Having the right insurance cover.
Recent reporting by the ABC highlights that thousands of Australians are discovering—usually during a crisis—that their default insurance through superannuation might not provide the cover they expect. Some are left out-of-pocket or denied support altogether, because the fine print didn’t match their needs.
Here’s what you need to know—and why taking action now could be the smartest move you make for yourself and your family.
💸 Why Insurance Through Super May Not Be Enough
Most Australians have life insurance, TPD (Total and Permanent Disability), and sometimes income protection insurance automatically bundled into their super funds. While this can offer basic coverage at a low cost, it’s rarely personalised—and often, it’s not enough.
The Risks Include:
- Too little cover: Many policies only pay out limited amounts, far below what’s needed to replace income or pay off debt.
- Exclusions or conditions: Some claims are denied due to job type, health history, or work hours (especially casual or part-time roles).
- Cancelled or inactive policies: If your super hasn’t had contributions in 16 months, cover may have lapsed without notice.
As the ABC article reports, Australians have been caught off guard by claims being rejected or capped, leaving families in financial distress.
🚨 Real-World Consequences
Imagine this: You suffer a serious injury, are unable to work, and assume your insurance will kick in—only to learn your income protection policy expired last year due to inactivity in your super. Or your TPD policy doesn’t cover your occupation. Suddenly, a health crisis becomes a financial one.
This isn’t rare. It’s happening every day across Australia.
💡 What You Need to Check
You should regularly review your cover, especially if you:
- Have changed jobs, gone part-time, or become self-employed
- Have dependents or a mortgage
- Haven’t reviewed your super or insurance in the past 12 months
Key Questions to Ask:
- What types of cover do I have?
- What are the payout amounts and waiting periods?
- Are there any exclusions?
Am I paying for multiple policies unnecessarily?
🤝 The Role of a Financial Adviser
Insurance is complex. Policies differ in wording, definitions, and conditions—and most people don’t have time to read through them all.
A financial adviser can:
- Analyse your current insurance and identify gaps
- Help you consolidate policies if you’re paying too much
- Tailor a strategy to match your income, family needs, and risk tolerance
- Ensure your cover grows with your life stage
At CFV Advisory, we help Australians not just grow their wealth, but protect it. Victor Idoko, CFA and founder of CFV Advisory, brings more than 13 years of experience in helping clients understand their insurance needs clearly and confidently.
📅 Ready to Take a Look at Your Cover?
The best time to review your insurance isn’t after something’s gone wrong—it’s today.
If you’re unsure how much cover you have, or whether it’s still right for your life, reach out for a personal strategy session with our team.
Your future self—and your family—will thank you.
Helpful Resource:
ABC News: Default super insurance fails Australians in their time of need
Any discussion in this article does not take into account your objectives, financial situation or needs. Before acting on it, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.