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.
- AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.
- Based on the gross Superannuation Guarantee contributions received for the last four financial years 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 does not take into account contributions you may be receiving at any other super fund, your insurance needs and your financial circumstances.
- Income from other sources include benefits payable under other Income Protection policies, workers’ compensation and motor accident compensation (eg TAC). For more examples see the Insurance in your super guide.