Death and Total & Permanent Disablement (TPD)
Income Protection

Death and Total & Permanent Disablement (TPD)

The cost of your cover will depend firstly on whether you have units of cover or fixed cover. It is also affected by your age and occupational rating (Standard, Low Risk or Professional).

Choosing units of cover or fixed cover

When applying for Death and/or TPD cover, you can choose between units of cover or fixed cover, but you cannot have a combination of both.
 

1. Units of cover
   
   With units of cover, you buy your cover in units and each unit is worth a specific amount of cover depending on your age. The cover amount provided by a unit decreases as your age increases, but the number of units you have and the amount you pay stays the same. When you join, your Death and TPD cover is provided in units. The following table shows the premium cost per week for a unit of cover:
   
   

   Type of cover	Weekly cost per unit of cover
   Death	$0.491
   TPD	$0.50

   Total weekly premiums are rounded to the nearest whole cent.

   Example Michael has 3 units of Death cover and 4 units of TPD cover. So the cost for his cover is: Death cover is 3 units x $0.491 = $1.48 per week TPD cover is 4 units x $0.509 = $2.04 per week

   You can view a unitised cover table which shows the amount of insurance cover provided by a unit of cover based on your age and your occupational rating.

    

2. Fixed cover
   
   

   With fixed cover, you buy an amount of cover (in multiples of $1,000). Your cover stays the same but as you get older, the costs you pay will increase each year. TPD cover does, however, reduce gradually from age 61 to nil at age 65. Please see our Insurance Guide for more information on how TPD reduces from age 61.

   The formula to calculate the cost of fixed death or TPD cover is:
   
   The amount of cover you want ÷ 10,000
   x the relevant premium for your age
   = weekly premium cost

   Total weekly premiums are rounded up to the nearest whole cent.

    
   

   Example Peter is aged 27. He wants $150,000 death cover and $300,000 TPD cover. Peter's job involves manual labour, so his occupational rating is Standard. Peter's weekly cost for death cover is: The cover he wants of $150,000 ÷ 10,000 x the premium of $0.088 = $1.32 per week

   
   You can view a fixed cover table showing the premium cost per week, per $10,000 sum insured.

    

   What's covered by death insurance?
   Death cover provides a lump sum to your beneficiaries if you die. It is designed to provide your dependents with money to live on, or repay your debts. A death benefit may also be prepaid if you are terminally ill. Please see the Insurance Guide for more information on terminal illness benefits.
   
   What’s covered by TPD insurance?
   TPD cover provides a lump sum to you if you become totally and permanently disabled. This amount is designed to replace your future income and provide you and your dependants with money to live on. A TPD benefit may also be paid if you are terminally ill. Please see the Insurance Guide for more information on TPD and terminal illness benefits.

    

Income Protection

The following table shows the weekly cost of a $500 unit of Income Protection cover based on your current age, waiting period and occupational rating.

	Standard		Low Risk		Professional
Current age	30 day waiting period	60 day waiting period	30 day waiting period	60 day waiting period	30 day waiting period	60 day waiting period
Up to 20	$0.329	$0.161	$0.215	$0.068	$0.179	$0.053
21 - 24	$0.329	$0.227	$0.215	$0.097	$0.179	$0.076
25 - 29	$0.329	$0.227	$0.215	$0.091	$0.179	$0.072
30 - 34	$0.400	$0.247	$0.265	$0.118	$0.221	$0.086
35 - 39	$0.529	$0.315	$0.343	$0.168	$0.286	$0.112
40 - 44	$0.714	$0.482	$0.466	$0.248	$0.386	$0.187
45 - 49	$0.965	$0.769	$0.636	$0.395	$0.529	$0.296
50 - 54	$1.365	$0.927	$0.879	$0.638	$0.737	$0.449
55 - 59	$2.008	$1.158	$1.258	$0.770	$1.051	$0.523
60 - 64	$2.159	$1.158	$1.579	$0.889	$1.315	$0.603

Total weekly premium will be rounded up to the nearest cent.