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Optional insurance

Do you know if you have enough insurance cover? Now’s a good time to find out.

Did you know that as a UniSuper member you have access to low cost optional Death, Disablement and Income Protection insurance cover? It’s all because UniSuper is able to purchase insurance on a 'group life' basis and pass on the savings to our members.
Here's what you can choose from:

Optional Death and Disablement insurance cover

Our optional Death and Disablement insurance cover could help you and your family when you need it most.
This insurance is provided in one of two ways:

Unitised cover

Unitised cover is based on cover that decrease as your age increases while the weekly premium you pay remains the same.

The amount of cover is based on the age you will be on your next birthday.

Fixed cover

If you prefer the certainty of a fixed level of cover you can convert your unitised Death and Disablement or Death-only cover to fixed cover provided you are under age 61. Between the ages of 61 to 69 (inclusive) Disablement cover reduces by 10% per annum.

Find out more about:

Default optional insurance cover for new members

Accumulation 1 and 2 and Defined Benefit Division members

If you meet the eligibility criteria and are an Accumulation 1 member, or a DBD or Accumulation 2 member who receives 17% employer contributions and have not reduced your standard member contributions under contribution flexibility arrangements on joining the Fund, you will automatically be provided with and start to pay for one default unit of optional Death and Disablement cover or Death-only cover (depending on your eligibility and the type of cover you elect to purchase) when you join the Fund. If you are a DBD or Accumulation 2 member and your employer does not make 17% employer contributions on your behalf, you will generally not be eligible for optional Death and Disablement cover.

You can purchase a further two additional units of the same type of cover as your default cover without providing health evidence to the Insurer, as long as you apply within
180 days of being first eligible to join the Fund and receive an employer contribution into your account within this time frame. You must apply for the additional two units of cover on your membership application form.

You can opt out of the default optional Death and Disablement cover altogether, or choose to purchase Death-only cover when you join the Fund, by completing the appropriate section of your membership application form. However, if you wish to apply for cover at a later date you will need to provide health evidence to the insurer.

Spouse Account members

If you meet the eligibility requirements you will automatically be provided with and start to pay for one default unit of optional Death and Disablement cover or Death-only cover (depending on what cover you have purchased) if you apply within 180 days of your sponsoring member being first eligible to join the Fund and you receive a contribution into your account within this time frame.
If you are not gainfully employed for reward and actively performing all of the duties of your usual occupation from which that reward (i.e. income) is derived, your cover will be Death cover and, for the first 12-month period only, Limited Disablement cover. After this period, cover will revert to standard Death and Disablement cover. Please refer to the Optional insurance cover for members booklet for more information on Limited Disablement cover.

You can purchase a further two additional units of the same type of cover as your default cover without providing health evidence to the Insurer, as long as you apply within
180 days of being first eligible to join the Fund and receive an employer contribution into your account within this time frame. You must apply for the additional two units of cover on your membership application form.

Eligibility

If you are an Accumulation 1, DBD or Accumulation 2 member, you are eligible for default Death and Disablement cover, if you:

  • are working on a full time, part-time, permanent or contract basis, and
  • join the Fund within 180 days of when you are first eligible to become a Fund member, and
  • have not joined the Fund as a result of a payment split under the Family Law Act.

You must also be an Australian citizen or a holder of an Australian permanent visa or reside in Australia on a 457 working visa to be eligible to purchase default Death and Disablement cover.

You will automatically be provided with and start to pay for one default unit of optional Death and Disablement cover if:

  • you are less than 70 years of age when you join the Fund, and
  • you do not have a current claim for, are not eligible to claim, and have not previously received, an insured terminal illness or disablement benefit.

Please note, your cover will be automatically transferred to optional Death-only cover when you turn 70 and your optional Death-only cover will cease when you turn 75.

The cost of cover

Each unit of optional Death and Disablement cover costs $1.40 per unit per week and each unit of Death-only cover costs 80 cents per unit per week.

Fixed cover is calculated based on your age and the level of cover you apply for per $1,000 sum insured.

The premiums are automatically deducted from your account /accumulation component each month in arrears based on the number of Fridays in the month.

What insured benefits are payable?

If you die, are diagnosed with a terminal illness or suffer disablement and a claim is made under your optional Death and Disablement cover and it is approved, the insurer will pay a lump sum benefit, subject to the limits set out in the Optional insurance cover for members booklet.

If you have unitised cover, the amount that you will be entitled to will depend upon the number of units of cover that you have and your age on your next birthday after you:

  • cease work due to disablement (where applicable) or death, or
  • are diagnosed with a terminal illness.

If you have fixed cover, you will receive the fixed insured benefit amount to which you are entitled.

Taking a Flexi Pension under Transition To Retirement provisions

As long as you continue to have an accumulation component/account and you meet all other eligibility criteria, any optional insurance cover that you have as part of your UniSuper membership will continue.

If you have taken out optional insurance cover:

  • your optional Disablement insurance stops at age 70.
  • your optional Death-only insurance stops at age 75.
  • your optional Income Protection insurance stops at age 65 (Accumulation1 and Spouse Account members only).

When does cover cease?

Provided the balance of your accumulation account/component is above $2,000, or you continue to receive contributions to your accumulation account/component, any optional Death and Disablement cover that you have will generally continue up until the age limits outlined above. (Other circumstances also dictate when a member’s cover may cease. Please refer to the Optional insurance cover for members booklet) for more information.

 

Optional Income Protection cover

This insurance cover is only available to eligible Accumulation 1 and Spouse Account members.

Eligibility

To be eligible for optional Income Protection insurance on joining UniSuper you must be:

  • an Accumulation 1 member who is at work (as defined in the Optional insurance cover for members booklet) or a Spouse member who is gainfully employed for reward,
  • aged 15 or over but under 65 years when you join UniSuper, and
  • an Australian citizen or a holder of an Australian permanent visa or reside in Australia on a 457 working visa.

If you are an Accumulation 1 member who is not at work on the date that cover commences you will only be entitled to Limited Income Protection cover for the initial 12-month period.

All Spouse members who purchase Income Protection cover within 180 days of their sponsoring member being first eligible to join UniSuper and do so by completing their Spouse Account application form will be entitled to, for the first 12-month period only, Limited Income Protection cover provided all eligibility criteria are met. After this period, cover will revert to standard Income Protection cover for total disability and partial disability.

Please Note: DBD and Accumulation 2 members are eligible for temporary incapacity benefits under the Fund’s inbuilt benefit provisions. Therefore, optional Income Protection insurance cover is not available.

What insured benefits are payable?

If your claim is accepted, a monthly benefit is payable for a period of up to two years.

The cost of cover

Income Protection insurance cover is unit based and is provided in multiples of $100 per week of cover. The premiums are based on your age and the level of cover you apply for.

Premiums are deducted from your account in arrears on a monthly basis based on the number of Fridays in the preceding month, depending on when your cover starts.

Applying for cover

If you apply for optional Income Protection cover and become a member of the Fund within 180 days from when you are first eligible to do so and an employer contribution is received in respect of you in that period, you will not be required to provide health evidence to the Insurer (subject to cover limits).

If you are a Spouse member and you apply for optional Income Protection cover within 180 days of your sponsoring member being first eligible to join the Fund, you are gainfully employed and receive an employer contribution into your account within that time frame and are actively performing all the duties of your usual occupation and are not receiving income support benefits (for example, workers compensation or statutory disability benefits) from any source, you will not be required to provide health evidence to the Insurer (subject to cover limits).

In other circumstances, you can still apply for cover, however health evidence will be required.

How much cover can you apply for?

Subject to meeting the eligibility criteria you can apply for the lesser of:

  • 75% of your pre-disability monthly income and an additional amount of up to 10% of your pre-disability monthly income as an employer superannuation contribution, or
  • a maximum of $6,900 per week, (69 units).

The minimum pre-disability monthly income that can be insured is $100 per week.

Where your selected level of Income Protection cover results in your insured income being less than 85% of your pre-disability monthly income, only the portion above 75% will be payable as an employer superannuation contribution.

You must provide health evidence to the Insurer if these requirements are not satisfied, if you apply for cover above $2,300 per week (23 units) or if you apply outside of the initial 180-day eligibility period. All applications must be approved by the Insurer.

Transferring cover

Your optional Death and Disablement or Death-only insurance cover with another provider may be able to be transferred to equivalent cover with UniSuper with minimal underwriting requirements. Accumulation 1 and Spouse Account members may also be able to transfer their Income Protection insurance cover to UniSuper. To apply, complete a Transfer of insurance cover form.

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