Compulsory insurance

Your level of compulsory insurance depends on your UniSuper membership category. Find out what your membership gives you.

Compulsory cover

As a Defined Benefit Division or Accumulation 2 member you automatically receive insurance cover for:

• Death
• Permanent Disablement, and
• Temporary Incapacity

If you reduce your member contributions you’ll still be covered by our compulsory death and disablement insurance. But remember - a reduction in contributions will reduce your resignation benefit and, effectively, your death benefit.

Death cover

Your compulsory Death cover gives you peace of mind that your beneficiaries will receive a lump sum benefit in the event of your death.

If you are a Defined Benefit Division member your death benefit is calculated using a formula based on your salary, period of service, age and contribution levels. If you die before you reach 60 and you are still a contributory member, it provides an additional amount for potential membership to age 60.

You will also receive the accumulation component of your benefit.

If you are an Accumulation 2 member your death benefit will be your account balance. If you die before age 60 and you are still a contributory member, your insurance cover will provide an additional amount for potential membership to age 60.

Permanent Disablement cover

Your compulsory insurance cover includes a permanent disablement component, which, if you meet the relevant definitions in the Fund's Trust Deed, will give you a monthly income benefit equal to 60% of your monthly benefit salary, payable to a maximum of age 65.

• At age 65, you will be paid a retirement benefit lump sum, or
• If you die before age 65, a death benefit lump sum will be paid.

Approved claims for any optional disablement insurance cover you have purchased will be paid in the form of a lump sum.

Temporary incapacity cover

Under this part of your compulsory insurance cover, you may be entitled to receive a monthly income if you become ill or injured and are unable to work for over three months.

This monthly income benefit is equal to 60% of your monthly benefit salary, payable for up to two years.

To qualify for this benefit you need to meet the definition of temporary incapacity in UniSuper's Trust Deed.

Want more details? Just download the fact sheet, Temporary Incapacity Benefits for Defined Benefit Division or Accumulation 2 members or the Trust Deed.

What will your compulsory cover cost?

If you are a Defined Benefit Division member, there are no separate deductions – the cost of this insurance cover is built into the formula used to calculate your benefit.

If you are an Accumulation 2 member, your annual insurance premium is deducted from your UniSuper account. This premium can change from time to time, but is currently calculated as $8.96 per $1,000 of salary upon which your compulsory superannuation contributions are calculated.

Taking a pension under transition to retirement provisions

If you are currently entitled to UniSuper’s compulsory insurance cover and you reduce your hours as a part of transition to retirement, your cover will also be reduced on a pro-rata basis.

If you are a Defined Benefit Division member, and you use all or part of your defined benefit component to purchase a pension under transition to retirement provisions, the premiums will be deducted from your Accumulation 2 account.

If you are an Accumulation 2 member, your premiums are deducted from your Accumulation 2 account.

For more details see Transition to retirement.