Super Insurance Cost Impact Calculator
Estimate how much insurance premiums deducted from your super could reduce your retirement balance over time.
Your results
Calculation breakdown
- Yearly step
- (balance − annual premium) × (1 + return)
Worked example
A $400 annual premium deducted from a $60,000 balance over 25 years at 7% growth can reduce the final balance by well over $20,000.
Assumptions
- Premiums are assumed to stay constant in real terms, though they typically rise with age.
- Contributions during the period aren't modelled — this isolates the insurance cost only.
How this calculator works
This calculator projects the long-term impact of ongoing insurance premiums (such as life, total and permanent disability or income protection cover) deducted from your super balance, compared with the same balance growing without those premiums.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 14/08/2026.
Frequently asked questions
Why does insurance in super reduce my retirement balance?
Premiums are deducted directly from your super balance, so that money is no longer invested and compounding towards retirement.
Should I cancel insurance in super to save fees?
Not necessarily — weigh up the value of the cover for your circumstances before cancelling, since replacing it outside super may cost more or be harder to obtain.
Does this include stapled or default cover changes?
No, enter your own known annual premium; default cover amounts vary by fund and by your account balance and age.
Editorial review and responsibility
Reviewed by the CalcAussie editorial team on 21 September 2026. Review scope: Method, Australian terminology, material assumptions, source links and user-facing limitations.
Calculator results remain estimates based on the figures entered. Check material decisions against current official information and report a suspected error so it can be reproduced and corrected.
Results are estimates only and are not financial, tax, legal or credit advice.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.