Cutting the Cost of Your Super Life Insurance

By Norman Howe | More Articles by Norman Howe

Over 70% of working Australians have life insurance inside super [1]  and use super savings to pay their insurance premiums.

If this is you, then here is a sure-fire way to save 20% (or even more) on the cost of your insurance.

Given recent insurance industry announcements (see Sharecafe article by Glenn Dyer) we might need all the help we can get, because APRA signalled Life Insurance premiums are set to rise very soon.

So here is a way to get in front of the expected price rises and save some money.

If you want to get the most savings and reduce the overall cost of your insurance premiums, then an Enduring Rollover Strategy is for you.

But there is a catch.

You need a financial advisor for tailored advice, and you must qualify by having good health and no pre-existing medical conditions.

Enduring Rollover Strategy

For eligible people, this is a robust strategy used by many financial advisors and significantly reduces the cost of super insurance. Typical savings on a like for like basis is around 20%, which includes a 15% tax rebate and an 8.5% annual payment discount.

So how does it work?

Your Life Insurance premium is deducted annually from your current Super Fund and paid to a special complying Life Insurance Company Super Fund, which has been set up for insurance purposes. This strategy uses what is called an ‘Enduring Super Rollover payment’ and reduces the premium cost because a 15% super tax rebate applies.

Here is comparison of the Enduring Rollover Strategy with a typical Super Fund.

It’s important to note that due to tax laws it’s not possible to rollover within your own Super Fund, meaning you cannot use an Enduring Rollover strategy and benefit from the 15% premium reduction.


Enduring Rollover Strategy   Your Super fund
Life Insurance Company Super Insurance Only Fund Industry Super Fund Insurance and Investments
Advisor required No Advisor required
Individual Retail Policy Group Insurance Pool
Full Medical Underwriting Possible Medical Underwriting
Annual Premium Payment 8.5% discount Monthly Premium payments – no annual discount
Enduring Rollover Premium Payment comes from current super fund Premiums deducted from super savings same as current arrangements
15% tax rebate premium reduction No Premium reduction
Total premium savings 8.5% + 15% tax rebate No premium savings unless annual payment option available
Advisor can provide most competitive premium in the market Group Insurance Pool only – not outside market pricing


How it Works in Practice – Using a Financial Advisor

Let’s have a look at how the Enduring Rollover Strategy works in real life and delivers significant savings.

Jenny is an office manager aged 45, in good health, doesn’t have any medical history and is insured for $1 million dollars of life and permanent disability insurance.

Assuming the actual cost of the insurance was the same Jenny saves $460 or 22.2% of the first year’s annual premium cost. The main contributors to the saving were paying premiums annually and the 15% super rollover rebate.

  Typical Super Fund Group Pool Like for Like Comparison Retail Policy
Term Life Cover $1,000,000 $1,000,000
TPD Cover $1,000,000 $1,000,000
Annual Premium Cost $2,070 $2,070
less 8.5% discount for yearly premiums $0 -$176
  $2,070 $1,894
less 15% super rollover rebate $0 -$284
Total Annual Premium Cost $2,070 $1,610
Total Savings in Year 1   $460

*The above premiums are from one of Australia’s leading industry super funds


An Added Bonus – from using a Financial Advisor

Under a Financial Advisor’s Best Interest Duty this case would go one step further, seeking to reduce the overall insurance costs on a like-for-like basis by recommending a replacement policy from the life insurance market with a much lower overall premium.


  Typical Super Fund Group Pool New retail policy Provider
Term Life Cover $1,000,000 $1,000,000
TPD Cover $1,000,000 $1,000,000
Annual Premium Cost $2,070 $1,257
less 15% rollover rebate $0 -$188
Total Annual Premium Cost $2,070 $1,068
Total Savings in Year 1   $1,002


Jenny saved 48.4% compared to her current insurance premiums because Jenny used a financial advisor who had the whole insurance market to choose from, and then used the Enduring Rollover Strategy.

Right for You?

It might be time to have a chat with your financial advisor and mention the Enduring Rollover Strategy.

 Don’t have an advisor?

Maybe now is a good time to go shopping for a financial adviser so you aren’t needlessly overpaying for your insurance.



[1] Money Smart, 2021, Insurance Through Super,

About Norman Howe

Norman Howe is the founder of Strat X Advisory and has been involved with wealth management for over 30 years. He primarily works with SMSF trustees, SME owners and family groups helping them achieve wealth-life goals. As a high-level adviser and strategist, Norman specialises in SMSF, business restructuring, Estate Planning and Wealth-Life planning.

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