Important change to your Income Protection FAQs

It’s important that you get value from your insurance cover¹ and that it’s right for your needs, because insurance costs are deducted monthly from your super account and they reduce your retirement savings.

We’re reducing your Income Protection because you may be paying too much for your cover and may not be able to claim the full amount of your cover, as your estimated annual salary is less than $25,000. This is based on the gross Superannuation Guarantee contributions you’ve received in your AustralianSuper account for the last four financial years.

Based on the Superannuation Guarantee contributions you’ve received in your AustralianSuper account for the last four financial years up to 30 June 2023, your age-based Income Protection may be unsuitable for you². This is because:

• The maximum Income Protection benefit payment amount you can get if you’re eligible to claim is the lower of your cover amount or 85% of your pre-disability income and the payments may be reduced by income you receive from other sources³. Up to 75% of your benefit payment is paid to you
• If the amount of cover for your age is more than 85% of your salary, you may not be able to claim the full cover amount you’re paying for from your super account.

However, you should review your insurance needs and circumstances and consider the impact of insurance costs on your retirement savings. You may choose to keep your basic age-based Income Protection, or you may want to apply to increase, decrease or cancel it.

Income Protection can provide monthly payments to help you get by if you become ill or injured (at work or outside of work) and can’t work. Basic Income Protection is automatically provided to most members. Basic cover is age based which means the cover amount and the cost of it changes as you get older. It’s designed to provide a minimum amount of cover for changing needs as you get older. Basic Income Protection is available from age 25 up to age 70. The maximum Income Protection benefit payment amount you can get is the lower of your cover amount or 85% of your pre-disability income (offsets and other conditions may apply).

Here’s an example:
Kylie has just turned 35. She has age-based Income Protection with AustralianSuper. She’s covered for $3,000 a month ($36,000 a year).
She’s been working part-time for the past few years as her family grows. She’s earning $24,000 a year (before tax and excluding super). 85% of her part time earnings is $20,400 a year or $1,700 a month.
Kylie plans on returning to work full-time within the next six months. Her full-time earnings will be $45,000 (before tax and excluding super). 85% of her full-time earnings will be $38,250 a year or $3,187 a month.
The Income Protection amount Kylie may be able to claim is shown below:

Kylie decides to keep her age-based cover, because she knows that she’ll soon be earning enough to claim up to the full age-based Income Protection amount.

You currently pay for basic age-based Income Protection from your super account. We’re reducing the amount of Income Protection you have to $1,000 a month and changing it to fixed cover.

If your Income Protection is reduced to $1,000 a month of fixed cover, these won’t change:

• any Income Protection waiting period and benefit payment period you have, and
• any limited cover or exclusions you have.

If you choose to keep your basic age-based Income Protection and you let us know by 25 March 2024, these won’t change:

• your cover amount
• your cover type
• any Income Protection waiting period and benefit payment period you have, and
• any limited cover or exclusions you have.

In both cases, your member number, login details, investment choices and costs, and any beneficiary nominations associated with your super account will also stay the same.

You’ve been included in this change because based on the gross Superannuation Guarantee contributions received for the last four financial years up to 30 June 2023 in your AustralianSuper account, your estimated annual salary is less than $25,000 indicating that basic age-based Income Protection may be unsuitable for you. This estimate doesn’t take into account contributions you may be receiving at any other super fund, your insurance needs and your financial circumstances.

No, this change only affects AustralianSuper plan members with basic age-based Income Protection who have an estimated annual salary less than $25,000 based on the gross Superannuation Guarantee contributions received in their AustralianSuper account for the last four financial years up to 30 June 2023.

We don't know your personal and financial circumstances. We're writing to you before we reduce your Income Protection so you can consider your insurance needs, how much cover (if any) might be right for you and your options if you do want to keep or change your Income Protection.

If you want to keep your basic age-based Income Protection, you can. See How to keep your age-based Income Protection and Change your Income Protection sections in the notice you received to find out how.

Not sure what insurance cover is right for you? Speak to a financial adviser to get the right protection for you. Simple advice over the phone is included in your membership at no additional cost¹. To book an appointment call 1300 300 273 from 8am to 8pm AEST/AEDT weekdays.

Age-based cover means the amount of Income Protection you have, and the cost of it, will change as you get older.

Fixed cover means the amount of cover you have stays the same unless you change it and generally the cost of it increases as you get older.

For more information about age-based and fixed cover see the Insurance in your super guide at australiansuper.com/InsuranceGuide

Here are some reasons you may want to keep it:

• If your cover reduces to $1,000 a month of fixed Income Protection, you’ll need to apply and provide detailed health information for the Insurer to consider if you want more Income Protection in the future. The Insurer may decline to accept your application.
• If the cover you have is right for you based on your salary and financial circumstances.
• If you expect that your salary may increase in the near future.

If we don’t receive your completed Keep your basic Income Protection form by 25 March 2024 (and if you haven’t made any changes to your Income Protection or notified us of a claim), your amount of Income Protection will be reduced to $1,000 a month of fixed cover, effective 30 March 2024. We’ll write to you to confirm we’ve reduced your cover.

If you want to keep your basic age-based Income Protection, you can.

You need to let us know by completing the Keep your basic Income Protection form either online at australiansuper.com/KeepIP or the paper form included with your Important change to your Income Protection notice (if you received it by post) by 25 March 2024.

If we don’t receive your completed form by 25 March 2024 (and if you haven’t made any changes to your Income Protection or notified us of a claim), your amount of Income Protection will be reduced to $1,000 a month of fixed cover, effective 30 March 2024. We’ll write to you to confirm we’ve reduced your cover.

If you choose to keep your basic age-based Income Protection or change it, your cover may still stop in the future if your account becomes inactive (because you haven’t received any contributions or rollovers into your super account for a continuous period of 16 months). We’ll write to you before this happens.

Your cover could also stop for several other reasons. Refer to the When cover stops and how you can get cover again section of the Insurance in your super guide at australiansuper.com/InsuranceGuide

If you already have insurance with another super fund or insurer you should think about whether you need both (or whether you need more or less cover). Consider the features, who pays for it (you or your employer) and how (costs deducted from your super account or your take home pay). If you’re not sure how much (if any) cover is right for you, you can use our insurance calculator to work out how much cover you may need. Visit australiansuper.com/InsuranceCalculator and choose the I’d like to see how much cover I need button.

See the FAQ Where can I get financial advice? for advice options available to you.

To check how much cover you have, use the AustralianSuper app or log into your account at australiansuper.com, go to Insurance, then Manage insurance.

The cost of your cover will be based on your age, level of cover and your individual work rating. You can check the cost of your cover using the calculator at australiansuper.com/InsuranceCalculator

You can find your individual work rating using the AustralianSuper app, by logging into your account and going to Insurance or by calling us on 1300 667 387.

When you have insurance cover, an individual work rating classifies the usual activities of your job into one of three ratings: Blue Collar, White Collar or Professional. Your individual work rating is one of the factors that determines how much you pay for your insurance cover. Blue Collar is our default work rating and is the most expensive.

You can find your individual work rating using the AustralianSuper app, by logging into your account and going to Insurance or by calling us on 1300 667 387.

If you have a Blue Collar individual work rating you can check if you may be eligible to apply for a White Collar or Professional individual work rating at australiansuper.com/WorkRatingTool

For updates about the changes and access to the Keep your basic Income Protection online form and the Important change to your Income Protection notice, go to australiansuper.com/IncomeProtectionChanges

You can read and download the notice we sent you in November 2023 (by email or post) at australiansuper.com/IncomeProtectionChanges

We’ll write to you again in early 2024 if we haven’t received your completed Keep your basic Income Protection form (and if you haven’t made changes to your Income Protection or notified us of a claim), to remind you of this change and how you can keep your basic age-based Income Protection. If you choose to keep your basic age-based Income Protection before 25 March 2024, we’ll write to you to confirm your choice.

If we don’t receive your completed form by 25 March 2024 (and if you haven’t made any changes to your Income Protection or notified us of a claim), your amount of Income Protection will be reduced to $1,000 a month and changed to fixed cover, effective 30 March 2024. We’ll write to you to confirm we’ve reduced your cover.

You can reduce or cancel part (or all) of your cover anytime.

When you cancel your cover you won’t be insured from the date your cancellation is accepted. You (or your beneficiaries) won’t be able to make an insurance claim if you suffer an illness or injury after the cancellation. Claims may still be paid for an illness that became apparent, or injury that occurred before you cancelled.

If you’re replacing this cover with another insurance policy, before you cancel you should wait until the other insurer confirms your cover has started.

Consider getting financial advice first. If you cancel your cover you might not be able to get cover later. That’s because you’ll need to reapply and provide detailed health information for the Insurer to consider.

Log into your account and go to Insurance then Manage insurance or complete the Change your insurance or Cancel your insurance form at australiansuper.com/InsuranceForms

You can cancel, decrease or apply for more cover anytime by using the AustralianSuper app or logging into your account at australiansuper.com or by completing the appropriate form at australiansuper.com/InsuranceForms

You may need to provide detailed health information for the Insurer to consider if you apply for more Income Protection in the future.

The estimated salary may not align to your actual salary. That’s because our estimate is based on the gross Superannuation Guarantee contributions you’ve received in your AustralianSuper account for the last four financial years up to 30 June 2023. The salary estimate doesn’t take into account contributions you may be receiving at any other super fund, your insurance needs and your financial circumstances.

No action is required by you to make sure we have your correct salary on file, however you’ll still need to make a choice to keep your basic age-based Income Protection or have it reduced to $1,000 a month of fixed cover.

You can apply to increase your Income Protection once every 12 months when you have a salary increase by answering a few a health questions (limits and conditions apply). You can apply by using the AustralianSuper app or logging into your account at australiansuper.com, or by completing the Increase your Income Protection after a salary increase form available at australiansuper.com/InsuranceForms

No, there are no changes to any of your other cover types you might hold such as Death and TPD cover. This change only impacts basic age-based Income Protection.

You can find details on your advice options available to you as an AustralianSuper member at australiansuper.com/advice

You can access simple super advice¹ over the phone or more comprehensive and tailored advice² with a professionally qualified financial adviser as well as other tools and information.

An Income Protection benefit is payable if you’re totally or partially disabled after the waiting period has ended. No benefits are paid for, or during, the waiting period. You don’t pay for the cost of Income Protection while you’re receiving Income Protection payments. You’re not required to use up your sick or annual leave before you make a claim for an Income Protection benefit.

Refer to the Insurance in your super guide for the definitions of pre-disability income, total disability, partial disability and waiting period at australiansuper.com/InsuranceGuide

The table below shows how your monthly Income Protection benefit payment is calculated for a total disability benefit payment or partial disability benefit payment. If your pre-disability income has been $0 for more than 12 consecutive months, there may be no benefit payment in the event of a claim.

Any income that you’re entitled to be paid in a month that your Income Protection benefit is payable (whether you received it or not in that month), including:

• income or payments that are paid as a result of your illness or injury, including any:
  • benefits payable under other Income Protection policies
  • workers’ compensation, motor accident compensation (for example TAC) or other payments under legislation
  • sick leave
  • income component of a common law settlement
• employer super contributions, including if you’re self-employed and make tax deductible contributions.

Any income or payments from other sources you receive (or are entitled to receive) because of your illness or injury, that’s a lump sum, or exchanged for a lump sum, will be converted to a monthly figure as reasonably determined by the Insurer.

Income from other sources doesn’t include:

• income earned from investments
• annual leave or long service entitlements (these entitlements are considered income you earn from working. Under a partial disability claim, they may reduce the benefit amount you get paid)
• Centrelink and Department of Veterans’ Affairs payments, or
• any lump sum payments for total and permanent disablement.

If your amount of Income Protection is reduced to $1,000 a month of fixed cover, we’ll write to you to confirm we’ve reduced your cover. You’ll be able to see this change in your account online from late April 2024, however the reduction of cover will be effective from 30 March 2024. This may impact any claim you notify us of after 30 March 2024.

You can change your cover anytime by using the AustralianSuper app or logging into your account at australiansuper.com or by completing the Change your insurance form at australiansuper.com/InsuranceForms