Insurance cover through your super – what you need to know

Many people consider personal insurance a luxury they can’t afford, but as a member of AustralianSuper you may already have insurance cover through your super. This cover can help to protect your future financial security, should the unexpected happen leaving you injured and unable to earn an income.

The 3 most common types of insurance cover included in super are:

  • Death cover,
  • Total & Permanent Disablement (TPD) cover, and
  • Income Protection.

Take some time to understand each one, know what you’re covered for and how much your cover costs. The cost of your insurance is called a ‘premium’ and is automatically deducted from your super account, not your take home pay.

 

3 types of insurance cover through your super 

Death cover (also known as Life insurance) 

Death cover is a type of insurance which pays out a lump sum of money in the event of your death. It can also be claimed if you’re diagnosed with a terminal illness.

You’ll get basic Death cover1 once you’ve turned 25, have a super balance of $6,000 or more, and you’re receiving employer contributions2. Your cover is age-based, so the amount and cost of it will change as you get older. The cost of cover is deducted monthly from your super account and you won’t have to provide any health information.

With Death cover, the money is paid to a beneficiary – someone you nominate to receive your payout. It can be your partner or anyone who depends on you financially, such as children. In some cases, the money may go to a legal representative, who can then follow any wishes in your Will, or pass the money to your nominated person.

It’s important to make sure you have nominated a beneficiary, as it can help prevent any confusion in the future. You can change your beneficiary at any time.  

READ MORE: WHAT HAPPENS TO MY SUPER WHEN I DIE – CHOOSING A BENEFICARY

 

Total & Permanent Disablement (TPD) cover

TPD cover can pay you a lump sum if you become totally or permanently disabled and you’re no longer able to work. It also covers terminal illness. It can help cover rehabilitation costs, renovations to your home to manage your disability, debt repayments or help with the cost of living.

Please note that this cover is only applicable if you’re unable to work at all, not just within your current job.

As with Death cover, you’ll get basic TPD cover1 once you’ve turned 25, have a super balance of $6,000 or more, and you’re receiving employer contributions2. The cost is deducted monthly from your super account.

Costs vary for TPD. For more information about costs of cover and terms and conditions, refer to the Insurance in your super guide for your division today.

FIND OUT MORE: INSURANCE IN YOUR SUPER

 

Income Protection cover

Income Protection is designed to protect your income if you become injured or ill and can’t work for a period of time. It can provide monthly payments to support you while you’re not earning your regular salary.

You can apply for cover from age 15 – 69 and like Death cover, if you’re age 25 or over with $6,000 or more in your super account, and receiving employer contributions2, your cover will be automatically provided1.

How much your Income Protection costs will depend on your age, the amount of cover you need and your individual work rating (see below). The cost is deducted monthly from your super account, you just need to make sure you have the right level of cover.

Income Protection doesn’t cover redundancy. Insurance against loss of income from business closure or lack of shifts can’t be provided by super funds.

FIND OUT MORE: INSURANCE THROUGH SUPER

 

Check your insurance cover

AustralianSuper automatically provides most members with a basic level of insurance cover when they first join (age-limits and conditions apply). You can check your cover any time by using the AustralianSuper app and going to Insurance, or by logging into your online account and going to My insurance.

Check your work rating so you don't overpay

What you do for a living can affect what you pay for your cover. Your job will fall into one of 3 categories, called work ratings. AustralianSuper offers 3 levels of work ratings. These are called: Blue Collar, White Collar and Professional. Please note, Blue Collar was previously called ‘Standard’ and White Collar was previously called ‘Low Risk’. Professional remains the same3.

A Blue Collar work rating is automatically given to most new members regardless of their occupation, which means your cover is the most expensive. You should consider whether you’re eligible for a White Collar or Professional work rating to ensure you're not paying more for cover than you need to.

If you’re an AustralianSuper member you can use the Work Rating Tool to see if you’re eligible for a different rating. If you are, you can apply to change your work rating. Log into your account and go to My Insurance.

CHECK IF YOU'RE ELIGIBLE NOW

 

Understand how much cover is right for you

The right level of cover for you depends on your personal circumstances, lifestyle and future needs. For example, do you have a mortgage, or a family? Or do you rent and live with housemates? Just like home insurance, your lifestyle will affect your needs.

When you look at insurance cover and how much you need there are several things to consider. Including:

  • Day-to-day living expenses that your salary covers (such as bills, food, transport).
  • Any debts – mortgages, credit cards, personal loans.
  • How much income you (and your family) need to live comfortably.
  • Future costs such as medical care, education for your children or yourself, and the costs associated with anyone you support financially.

READ MORE: DO I NEED COVER

 

CALCULATE HOW MUCH COVER YOU MAY NEED

 

Making changes to your insurance cover

You can make changes or cancel your cover at any time if you decide it’s right for you. Before cancelling, you should check your current cover first.

To change or cancel your current cover use the app, log into your account and go to My insurance, then Change my insurance or complete the appropriate form.

LEARN MORE: CHANGING YOUR COVER

 

Speak to an insurance consultant for more help

Insurance may not be the easiest thing to make time for, as it can be a complicated area to get right. But insurance that’s right for you can provide peace of mind that you’ll be prepared financially if something unforeseen happens.

Download the Insurance in your super guide for more information about insurance through AustralianSuper. You can also speak to the AustralianSuper team to book a personal insurance consultation.

CONTACT US: BOOK AN INSURANCE REVIEW

 

Sources: 

1. Death cover and TPD cover depend on the plan or division you join. If you work If you work for a Federal, State or Territory Government employer through a department, agency, government business enterprise or statutory authority, you may be a member of our Public Sector Division. If your employer provides tailored insurance under an employment arrangement, you may be a member of AustralianSuper Select Division.
2. Age limits and other conditions apply
3. Updated work ratings names are effective from 29 May 2021.

This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs.  Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 



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