Why getting a mortgage is a natural moment to check your super

Why should I review my super when considering a mortgage?

Because a mortgage changes how your financial responsibilities – and risks – work together.

Once repayments become a long‑term commitment, income becomes more critical and flexibility can reduce. Lenders factor this in too. While banks usually only require property‑specific cover like home and contents insurance, the mortgage process often prompts broader conversations about financial protection, including what would happen if your income changed due to illness or injury.

This is where super becomes relevant now, not just something to think about at retirement. It’s also when people often discover they already hold insurance through their super – cover that was set up automatically when they joined a fund.

Nothing is necessarily wrong with their super. What’s changed is the context. A mortgage connects income, insurance and super more closely, making it natural to want a clearer picture of how everything fits together.

What insurance can be held inside super?

Insurance held inside super is designed to help you financially if you become seriously ill, injured or pass away – as everyday expenses and commitments don’t simply stop.

• Life insurance, which may provide a benefit to your beneficiaries if you pass away

• Total and permanent disability (TPD) insurance, which may apply if you’re permanently unable to work

• Income protection, which may help replace part of your income if you’re temporarily unable to work

• Additional cover, through Life Events cover, may be available to eligible AMP Super members during significant changes (like getting a mortgage)

How do I pay for my insurance through super?

Insurance premiums held inside super are deducted from your super balance, rather than your everyday bank account.

This can make cover feel easier to maintain during periods of tight cash flow, but it also means your level of insurance, and therefore your premiums, can affect how much remains invested for your future over time.
 

Should you change insurance inside your super when you get a mortgage?

Not necessarily. Reviewing insurance doesn’t automatically mean making changes.

What makes sense for you will depend on your individual circumstances, such as your income, debts, dependants and how long you expect your financial commitments to last.

Insurance through super can have limitations. The types and levels of cover may be more general, exclusions may apply, and the cover may not be tailored to your personal circumstances. You may also be paying for insurance in more than one super account if you have multiple funds.

That doesn’t make it “bad” – it just means it’s worth understanding what you have, and what you may need. Our Insurance Needs Calculator can help sense‑check how insurance might fit alongside a mortgage and other commitments.
 

What should I do next?

If you’re getting a mortgage – or have recently taken one out – a helpful first step can be checking what insurance you currently have inside your super. This isn’t necessarily about upgrading or increasing cover. It’s about understanding what’s already there, how premiums are paid, and whether you’re paying for insurance across multiple super accounts.

If you’re an AMP Super member, you can review your insurance details in My AMP. You also have access to Digital Financial Advice at no extra cost, including sessions with a financial advisor who can help you understand your insurance needs.

If you’re not with AMP, your super fund, a licensed adviser, or ASIC’s MoneySmart website can help explain what cover is included and how insurance through super works.