Do I need death or disability cover on my super?

Once you've stopped working in Australia and plan to leave, generally no. Cancelling stops the premiums draining a balance you're about to claim.

Will cancelling insurance affect my DASP?

No. It only stops future premiums. Your DASP claim and its 65% tax are unaffected, you just keep more of the balance.

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Superannuation

The silent fees eating your super, and how to stop them

Updated 2026-06-16

When a super fund opens, it usually switches on default insurance, death cover, total-and-permanent-disability, sometimes income protection. The premiums come out of your balance every month, whether or not you're still working. On a small backpacker balance, those fees plus admin fees can quietly drain the account to nothing before you ever claim it.

If you've stopped working in Australia and don't intend to return to that job, you almost certainly don't need this cover. Turn it off to protect what's left.

Log in to your super fund's online portal (or app).
Find the Insurance section.
Cancel or switch off each cover (death, TPD, income protection).
Confirm in writing and keep the confirmation email.

Do this for every fund you have, especially old ones you've stopped contributing to. If you worked for several employers, you may have several funds quietly charging insurance. Consolidating funds before you claim your DASP also cuts duplicate fees.

FAQ

Do I need death or disability cover on my super?: Once you've stopped working in Australia and plan to leave, generally no. Cancelling stops the premiums draining a balance you're about to claim.
Will cancelling insurance affect my DASP?: No. It only stops future premiums. Your DASP claim and its 65% tax are unaffected, you just keep more of the balance.

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General information to help you find your way, not personalised tax advice. For your exact situation, refer to the ATO (ato.gov.au) or a registered tax agent.