The protection most people don’t think about

Many Australians are quick to insure their homes, cars and health, but may give less thought to the insurance that helps protect their income and financial wellbeing.

However, when life takes an unexpected turn, protection can be crucial.

“A common financial risk for Australian families is not understanding the protection they have, or the protection they may need, when unexpected events occur,” said Gai Ferrington, North’s General Manager for Product and Pricing.

Why group insurance exists in the first place 

At its heart, insurance is about protecting what matters. Group insurance builds on that idea and applies it collectively.

“It can give many Australians an accessible entry point to protection, subject to eligibility regardless of where they’re starting from financially,” said Ferrington.

 Some people may see some type of insurance like health, car, home and content insurance as necessary but might not feel the same way about life insurance.  By bringing large groups of people together, group insurance can help make cover more accessible, and in some cases more affordable than it might be for many individuals on their own.  

This collective approach reflects something deeply familiar in Australia: the idea that many people contributing together can help support individuals when they need it most. And because group insurance is often provided through super, the cost is generally paid from your super balance rather than directly from your take-home pay. However, premiums reduce your super balance, which can affect your savings at retirement.

“For many Australians, insurance through super provides an important foundation of protection that can help support them and their families when life doesn't go to plan,” she said.

The role group insurance plays in people’s lives

For many Australians, their super includes more than just retirement savings. It can also provide insurance designed to help protect their financial wellbeing.

While it may sit quietly in the background, that cover can be important during some of life's most challenging moments. An illness, injury or the loss of a loved one can place significant pressure on household finances at exactly the wrong time. 

For example, if an injury leaves you unable to work for a period longer than your sick leave allows income protection through group insurance could help replace part of your income, subject to waiting periods, benefit periods and the policy terms.  

Insurance cannot prevent these events from occurring, but it can help reduce the financial impact, allowing people and their families to focus on recovery, adjustment, and rebuilding their lives.

Insurance through super involves trade-offs that are worth discussing with your adviser. Premiums reduce super balances and may affect retirement outcomes, cover can stop in some circumstances (such as account inactivity or a low balance), and default cover may not reflect an individual's needs. Benefits are subject to eligibility, terms, and conditions.

“It’s worth understanding how you and your family would be supported, if something happens to you that could cause financial burden,” said Ferrington.

What happens without protection? 

When you don't have the right protection in place, the impact can reach far beyond the immediate event.

“Without adequate cover some families may face serious financial strain, or life could become significantly more difficult for a family without the proper cover,” said Ferrington.

Your savings can be quickly depleted, debt can become harder to manage, and the goals you've worked towards may need to be delayed or put on hold. For many households, the financial consequences of illness or injury can be just as can add to the challenges of an already difficult time.

That's why understanding the insurance available through your super fund, and whether it meets your needs, is important, including the cost of the insurance.. 

The quiet value of collective protection

Insurance isn't something most people think about when life is going to plan. Its value often only becomes clear when it's needed most.

Yet every day, it helps provide financial protection to millions of Australians through a model built on collective participation and shared risk. While it may not be the most visible part of our financial system, it plays an important role in helping people navigate uncertainty and maintain financial wellbeing when life takes an unexpected turn.

“Some people hold insurance across multiple super funds, which can add cost and complexity. Advisers can help clients review these arrangements and consider whether bringing them together on one platform suits their needs,” said Ferrington. It is important to note before cancelling or replacing cover, consider whether you may lose benefits or face new exclusions or waiting periods..  

“At North, we're working to bring group insurance through super into our ecosystem to help create more options and a more connected wealth and protection experience for advisers and their clients.”

As the insurance landscape evolves, the challenge for providers is not simply offering cover. It's helping Australians better understand the protection they have, identify potential gaps and make more confident decisions about their financial future. That's a conversation the industry needs to continue having.  

To learn more about North Protect, talk to your Business Development Manager about how North Protect can fit into your practice. Available on 30 September 2026.