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Compare super funds with health insurance

Find a superannuation fund also offering health insurance. Compare super funds via rate, performance and fees to find an option that suits your financial needs.

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Does superannuation come with health insurance?

Yes, it’s possible to get superannuation with a side of health insurance but you’ll need to find a super fund that includes it in its offering. 

A lot of super funds in Australia offer health insurance as a fringe benefit to members, among other discounted products and services. As a prospective member, this means you have the opportunity to get extra benefits from your super fund.

What other types of insurance can you get through your super fund?

Superannuation funds generally offer three insurance options to eligible members:

  • Death cover (life insurance); this type of cover pays a lump sum or income stream to your nominated beneficiaries after your passing. If you don’t nominate anyone, a trustee or your estate will decide where the money goes.
  • Total and permanent disability (TPD) cover; this provides you with a lump sum payment if you can’t work again due to becoming totally and permanently disabled. The definition of ‘total and permanent disability’ differs slightly between funds, so it pays to check how a policy defines disability, as this will affect your TPD cover.
  • Income protection (IP) cover; income protection cover provides you with a regular income for a certain period of time if you’re unable to work due to temporary illness or injury, giving you peace of mind over your financial situation.
    Additional insurance policies are offered at the fund’s discretion.

What’s the benefit of buying health insurance through a super fund?

The convenience of having all your insurance policies under the one roof is the major benefit of taking out health insurance through your super. Not only can you more easily keep tabs on your cover but the recurring payments for premiums will come out of the one place—your super account balance, keeping repayments simple and out of pocket expenses low.

If you want to consolidate all your insurances in your super, you’ll have to find an Australian super fund with health cover. It’s important to shop around and compare your existing fund with competitors before you sign on the dotted line, to ensure you’re getting a fund that suits your personal circumstances.

Another benefit of taking out super insurance with health cover is the potential to receive a discount. Most Australian super funds offer discounted health insurance to their members, which can help you keep more money in your retirement nest egg.

If you decide to take out superannuation health insurance, the transfer from your current health insurer could potentially be done for you and the waiting periods could be waived, making the conversion process easier.

Should you get health insurance through your super fund or another provider?

The decision on whether to get health insurance through your super fund or a standalone provider rests on where the best value lies for you. So, take the time to compare policies to ensure you find one that has the inclusions and level of cover you’re after.

It’s also important to take into consideration that some super funds require a medical examination for health insurance policies. This is particularly important if you or a family member has any pre-existing health conditions, as this may affect your cover.

How do you find a super fund that offers health insurance?

There are a limited number of Australian super insurers that offer health insurance, so it can be a challenge to find one. 

GMHBA, an Australian not-for-profit health fund, is one of the main insurers partnering with superannuation funds to offer health insurance policies.

When searching around for superannuation insurance, it’s important to know the difference between life and health insurance, as they’re very different policies; health insurance protects against the risk of hospitalisation and medical expenses while life insurance protects against the risk of death.

Be sure to read the product disclosure statement of any superannuation fund you’re considering, to ensure you understand exactly what it covers.

 How can you check what types of insurance you hold through your super fund?

Considering that super fund insurance premiums are taken out of your retirement savings, it’s important to know where that money is going.

To find out what types of insurance you have in your super, you can:

  • Check the information on your annual statement
  • Read the relevant product disclosure statement (pds)
  • Visit the super fund’s website or online portal
  • Reach out to your fund directly for confirmation.

From this, you’ll also be able to see how much cover you have and how much you’re paying in premiums.

What are the pros and cons of holding insurance through super?

There are both advantages and disadvantages when it comes to taking out super insurance cover.

Pros of super insurance:

  • Easy to pay: insurance premiums are automatically deducted from your super balance, meaning your repayments are on autopilot and you’re not out of pocket in terms of cash flow.
  • Tax-effective payments: your employer’s super or salary sacrifice contributions are taxed by 15 per cent, which is lower than the marginal tax rate for most people. This can make paying for health insurance through super more tax-effective than a standalone health insurance provider.
  • Convenient: housing all your insurance policies in the one place can make things easier and potentially relieve pressure, as the premiums are not being taken out of your bank account that funds other financial commitments.
  • Could be less than standalone insurance: oftentimes if you take out health insurance with your super fund you can access discounts, so you may be able to secure a better deal.

Cons of super insurance:

  • Reduces your retirement savings: insurance premiums are deducted from your super balance, which means there’ll be less funds to pull from when you retire.
  • Limited cover: the amount of cover you get through super insurance may be lower than a standalone insurance policy, with certain exclusions, meaning it may not be sufficient for your insurance needs.
  • Cover could end: if you swap super funds, your contributions stop or your super account becomes inactive, your cover could possibly end, leaving you with no level of insurance.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.