Why the cost of cover has increased for just these cover types
The number of claims for Income Protection with a benefit payment period up to five years and up to age 65 has increased, so we've had to substantially increase the cost of these two covers.
The notice we sent you explained that the increase will occur in two phases.
The first increase was applied on 28 May 2022 when the cost of Income Protection with a benefit payment period up to five years increased by 35.6% and the cost of Income Protection with a benefit payment period up to age 65 increased by 62.0%.
The second increase will apply from 27 May 2023 when the cost of these two covers will increase again.
We’ll write to affected members later this year to provide more information about the second increase.
The good news is that over the past year we had fewer claims for Death and Total & Permanent Disablement (TPD) cover as well as Income Protection with a benefit payment period up to two years, so we've decreased the cost of these cover types.
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How can I see what insurance costs have been deducted from my account?
You can view the insurance costs (premiums) that have been deducted from your super account by logging into your account and going to Transactions. You’ll see the costs listed by cover type in the transaction list.
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I have Income Protection with a benefit payment period up to five years or up to age 65. What are my options if I don’t want to accept the increase?
If you still want Income Protection cover and you have a benefit payment period up to five years or up to age 65, you can choose to make changes to your Income Protection to reduce the cost of it. For example, you could choose to change to a shorter benefit payment period up to two years, which is less expensive, if it’s right for you.
Or, if you have a waiting period of 30 days, you also have the option to choose a longer waiting period of 60 days to reduce the cost of your Income Protection cover.
If you’re not sure whether you should change your cover, consider getting advice to help work out what cover you need (if any) and how much is right for you.
With AustralianSuper, you have access to a choice of help and advice options from simple, personal advice over the phone, to more comprehensive, broader advice with a financial adviser*. Go to australiansuper.com/advice for more information.
* Personal financial product advice is provided under the Australian Financial Services Licence help by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your super account subject to eligibility criteria.
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I don’t want insurance cover through my super. Can I cancel it?
You can cancel your cover anytime. Simply log into your account and go to My insurance, then Change my insurance.
It’s important to remember though that if you cancel your cover now you might not be able to get cover later. That’s because you’ll need to reapply and provide detailed health information for our insurer to consider.
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I’m worried that I won’t have enough for my retirement if I’m paying for insurance through my super account. Should I keep my cover?
If you’re not sure whether you should keep your cover, consider getting advice to help work out what cover you need (if any) and how much is right for you.
With AustralianSuper, you have access to a choice of help and advice options from simple, personal advice over the phone, to more comprehensive, broader advice with a financial adviser*. Go to australiansuper.com/advice for more information.
* Personal financial product advice is provided under the Australian Financial Services Licence help by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your super account subject to eligibility criteria.
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You sent me a letter saying my cover had stopped (lapsed), so why do I have cover now?
If your basic cover stops*, it can recommence if you start receiving employer super contributions into your super account again.
If your cover has restarted, you would have been provided with the basic cover for the plan you’re in and your age at the time which could be higher or lower than the cover you had before and it may be limited cover.
* If your cover stopped because you cancelled it, it won’t start again.
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Why do I need to be earning $100,000 or more a year to be eligible for a Professional Income Protection work rating if I meet the other criteria?
Statistics show that people who meet the criteria for a Professional work rating, including earning $100,000 or more, make fewer claims than people who earn less than this amount. This means that if you earn less than $100,000 there’s a higher likelihood that you’ll make an insurance claim. The difference in costs between White Collar and Professional reflects this difference in historical claims experience.
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Why have some members remained in the Public Sector Division after most have transferred to the AustralianSuper Plan?
We’re closing the Public Sector Division as part of our longer-term strategy to simplify our product offer so we can continue to provide the value of scale for members.
We will be doing this with a phased approach to ensure that we are delivering the best possible outcome and assistance to Public Sector Division members.
In the first phase, the majority of Public Sector Division members moved to AustralianSuper’s largest division – the AustralianSuper Plan on 28 May 2022.
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I can’t find the answer to my question. What do I do now?
If you’ve read the SEN and these FAQs and you still have a question, we’re here to help. You can message us via the app or through your online account. Or you can call us on 1300 667 387 from 8.30am to 5pm AEST/AEDT weekdays.
