Can you claim on multiple insurance policies at the same time?
If you've got life insurance through your super and a newer retail policy you set up with your adviser, you might be wondering: “Can I actually claim on both?”
The answer? Like all good insurance questions, it depends.
Let’s break it down.
Income Protection: Can you double dip?
Short answer: Nope—not fully.
Income protection (IP) is designed to replace up to 75% of your pre-disability income. So even if you’ve got two IP policies—say one through your super fund and one outside—you won’t get double the payout.
If both policies pay out and the total is still under that 75% limit, you might be okay. But many super funds apply offset rules, which means they reduce your payout by however much you’re getting from another source—whether that’s WorkCover, TAC, or a second IP policy.
So even if you’ve got two valid policies, you might only see one payment land.
According to Moneysmart, most income protection policies won’t let you receive more than 75% of your income from combined sources like IP, workers comp, and Centrelink.
Source: moneysmart.gov.au
How do I check my fund’s rules?
Simple. Jump onto your super fund’s website and download their Insurance Guide or Product Disclosure Statement (PDS). Search for keywords like offset, multiple policies, or benefit limits.
Example: Some funds allow partial claims if the combined benefit is under 75%, but others will offset any payment you’re getting elsewhere—even if you’re under the cap.
📌 Pro tip: If your fund offsets your payout to $0 because you’ve claimed elsewhere, you could end up paying premiums for cover you’ll never use. That’s why understanding this up front is key.
What about life insurance, trauma, or TPD?
These are lump sum covers, so the rules are a little looser.
Generally, insurers allow you to claim from multiple policies as long as the total amount you’re insured for is reasonable (and was disclosed at application time).
Here’s a rough guide:
Let’s say you’ve got $500k life cover in your super and another $1 million retail policy. If something happens, both can pay out—if you disclosed both policies when you applied for the second one.
As per TAL’s Product Disclosure Statements, multiple claims on life or TPD can be paid out if they are not offset, cancelled, or overlapping in exclusions.
It’s possible to stack life, trauma, and TPD policies—but it’s not automatic. Some insurers will only approve new cover if you agree to cancel the old one.
So what should you do?
✔️ Check your PDS – Find out what your super fund allows when it comes to offsets or duplicate claims.
✔️ Ask your adviser – We can run a pre-assessment and let you know if your structure makes sense.
✔️ Don’t wait until claim time – If your policies aren’t compatible, it’s better to fix that now—not during a medical emergency.
In summary,
You can claim on multiple insurance policies—but not always the full amount.
Income protection is usually capped at 75% of income, across all policies.
Life, TPD and trauma can be paid out from multiple policies, if properly structured.
Check your super fund’s offset rules.
Always disclose existing cover when applying for something new.
Resources
Moneysmart – Income protection insurance
https://moneysmart.gov.au/how-life-insurance-works/income-protection-insuranceTAL – Insurance information https://www.tal.com.au