What Impact Will ‘Stapling’ Of Super Funds From November Have On Income Protection Insurance?


Australian superannuation funds have always been considered one of the best in the world. They are now set to become even better as the government is currently set to implement ‘stapling’.

Stapling means your superannuation fund will remain the same even if you switch jobs. This reduces duplicate accounts and paperwork; you also don’t have to double pay any account fees if you move funds and forget to close the account when you change jobs.

At present, anyone who changes jobs in Australia can nominate to have the same super fund as a previous job. However, in specific industries, this is not always possible. Stapling is particularly helpful if you are moving jobs within the same field. You can switch jobs and still keep the same superannuation account, meaning you will be free from all the hassle of creating a new account and paying fees on more than one account. 

Stapling superannuation funds has several pros. However, it also has some disadvantages that might not be ideal for you if your job is high-risk. When your super is stapled, you are tied to the insurance cover your superannuation fund allocates depending on your job type. The premium can be high even if the cover is good, and it could ultimately reduce your retirement savings.


Australian superannuation funds have always been considered one of the best in the world.


The coverage of income protection insurance that comes with your superannuation fund can differ hugely. For instance, some will cover reduced wages, while some won’t, some will cover COVID related loss, and some won’t. Many Funds only offer income protection on an opt-in or voluntary basis, so you may not have any income protection cover at all. Simply put, it is very different for each fund. The issue here is that income protection insurance is highly individualised, or at least it should be. It can also be dependent on your job, so through stapling, it can become ineffective. Also, those with a high-risk job right now who might want to switch to a low-risk job will still have to pay a higher premium despite needing a lower-risk cover.

Since there is so much uncertainty about how insurance and income protection will change within stapling, purchasing yourself an individually tailored insurance policy with a general insurer, either inside or outside your super fund is an option well worth considering. 

Suppose you feel you are not getting the right coverage and security from the income protection within your super fund. In that case, you can get yourself income protection insurance outside of super from insurance providers such as Aspect Underwriting.

Stapling starts from November 2021, so you still have a few months to get yourself sorted. Aspect Underwriting offers one of the best income protection insurance products that covers up to 85% of your income, which is 10% more than many other insurance providers.

Aspect income protection policies are flexible, meaning you can tailor your policy according to your needs instead of someone forcing you to choose something that does not cater to your circumstances.

Visit the Aspect Underwriting website and buy income protection online to keep yourself protected from the financial crisis you and your family could face if you lose your job due to illness or injury.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.