Money names the Best-Value Income Protection Insurance in Super


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Default insurance cover in superannuation is usually limited to death and TPD (total and permanent disability), but many funds also offer income protection insurance to members if they want to opt-in and have the premiums paid out of their super savings.

Colonial First State - FirstChoice Employer Super has won the category for men for the second year in a row, offering cheaper cover across all age groups for white-collar professional rates for $100,000 salary cover (with a 90-day waiting period).

"Income protection needs to be competitive, not only on price but also on product features and, more importantly, on the claims ecosystem that supports a member while they are claiming and receiving payments," says Adrian Fortescue, Colonial First State's head of insurance.

best of the best 2022 best value income protection insurance

"As income protection is a temporary benefit, it's important that the claims ecosystem supports someone's return to work strategies via rehab and other services," he says.

"Our income protection product also protects a member's retirement savings while receiving payments, with up to 10% of salary being paid into the superannuation account, continuing to build retirement savings while the member is unable to work."

Russell iQ Super offers the best-value income protection insurance for women this year, with premiums starting at $53 a year for younger women.

Applicants for Russell's income protection cover need to be a permanent or contract employee under 65 who works at least 15 hours a week. Cover provided is up to 75% of salary, with a 90-day waiting period, and is paid for two years. The Russell iQ Super insurance is also competitive for men, ranking third, as the premiums do not change based on gender.

When considering income protection Fortescue says that people need to ensure their cover will provide for them in their time of need. "Income protection cover can be complex so it's important to understand the general features of the product and ensure they will get value for the cover should they ever need to claim," he says.

As income protection insurance in super is usually limited to a short-term payment benefit, people may want to consider protection outside super as well.

"They can also personalise their cover and design inside super with premiums deducted from their superannuation account, while policies held outside super may be tax-deductible," says Fortescue.

Other good-value products in this category for men include AMG Smart Choice Super - Employer and AMG Personal Super, which won the best-value income insurance category for women last year.

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