Should I cancel the insurance in my super?

Cancelling is easy. Undoing it isn't. That asymmetry is the whole decision.

What you give up when you cancel

Default cover in super is accepted without health questions. That's rare, and it's worth something even if you never claim. Once you opt out, you usually have to apply again later with a health assessment, and the answer might be a higher price, an exclusion, or a no. Some funds let you reinstate cover without health questions within a short window, such as 60 days, but it varies, so read your fund's guide before relying on it.

If you've since developed a condition, the cover you cancelled can be impossible to replace on the same terms. That includes conditions that aren't serious. A history of anxiety, back pain or high blood pressure can change what an insurer offers.

When cancelling usually makes sense

You hold the same cover in two accounts. Death and TPD can pay from both, but you may not need both. Income protection normally pays about 75% of your income in total, so the second policy mostly adds a second premium. Keep the one with better terms and cancel the other. Check the terms before you do, including the waiting period and whether the cover is limited.

Nobody depends on your income and you have no debts. If you're single, have no dependants and no mortgage, death cover mostly pays your funeral and estate costs.

The balance is small and the cover is a poor fit. If premiums take a meaningful slice of a small balance and the cover is something you don't need, that money is better left invested.

You've already replaced it. Only cancel once the new cover is confirmed in writing. Cancelling first, then applying, is how people end up with none.

When it usually doesn't

You have children or a partner relying on your wage, and a mortgage. This is when cover matters most. Our sample household in the calculator, a 35-year-old on $85,000 with a partner on $60,000, two young children and a $550,000 mortgage, needs about $1.1 million of Death cover and $875,000 of TPD (with income protection to 65). Default cover at most funds is a fraction of that. See the working.

You're self-employed or have no sick leave. Income protection is the cover that keeps rent and bills paid when you can't work. It's also the cover people most often lack.

You have, or might have, a health condition. Keep what you have.

The cost side

At 35, automatic cover at the funds we compare costs between about $80 and $590 a year. On a $20,000 balance, a $300 premium is 1.5% of your account in a year. On a $200,000 balance, it's 0.15%. Full figures by fund.

A middle path

You don't have to choose between everything and nothing. You can keep Death and TPD and drop income protection, reduce the amounts, or keep one policy and cancel the duplicate. Many funds let you change amounts online.

Before you cancel anything

1. Find out what you have in every account.
2. Work out what you need.
3. Check what you'd have to go through to get it back.
4. Confirm any replacement in writing before you cancel.

This is general information, not advice for your situation. If you're weighing a large decision or you have a health condition, talk to a licensed adviser first.

Sources

• ASIC MoneySmart, Insurance through super
• Fund insurance guides as at 22 October 2026, via the miadvice fund comparison
• Sample household calculated in the miadvice needs analysis

General information only, not personal advice. Fund rules and premiums change, usually on 1 July or 1 October. Check the fund's current insurance guide before relying on a figure here.