Understanding insurance through your super
Being in the know about insurance offered in your super can help protect you and your loved ones in case the unexpected happens.
Insurance in your super can be a complex topic. That’s why we’ve prepared some handy resources to unpack the basics and help you make an informed choice.
Insurance frequently asked questions
Defined Benefit Division insurance and inbuilt benefits
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What are inbuilt benefits?
Inbuilt benefits is the term used to describe benefits payable to DBD members or their beneficiaries in the event of disablement, temporary incapacity, a terminal medical condition or death.
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Are inbuilt benefits the same as insurance?
Not quite. Even though inbuilt benefits are similar to life insurance cover because they can provide financial protection against injury, illness or death, there are some differences. Unlike cover provided by our insurer, they form part of your defined benefit and there’s no charge deducted from your account.
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As a DBD member, do I receive inbuilt benefits and insurance automatically?
Inbuilt benefits are aptly named—they’re built into the DBD design. Most DBD members receive these automatically, although you won’t be covered for any pre-existing medical conditions for three years after you join the DBD.
You’ll generally also receive one unit of default Death and/or Total and Permanent Disablement (TPD) insurance cover without providing health evidence to our insurer if you meet the eligibility criteria. You may also be able to elect an additional two units of Death and/or TPD insurance cover within your first 180 days of membership.
Insurance premiums will be deducted from your accumulation component and insurance cover will cease if you have insufficient funds.
Everyone’s insurance needs are different. As your life changes, your insurance needs can change too. You should frequently review your cover to ensure it’s right for you and your situation. If you’re unsure, consider speaking to our award-winning advice team.
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How are my inbuilt benefits determined?
We use formulas that consider numerous factors to determine your inbuilt benefits, such as your work arrangements, salary and default member contribution rate.
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Who provides the inbuilt benefits component of the DBD design?
UniSuper provides your inbuilt benefits, not our insurer.
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Who provides UniSuper’s insurance?
We provide cover through our insurance partner. We bulk-buy cover – sometimes referred to as ‘group insurance’ – which allows us to keep premiums as low as possible.
We offer insurance for Death and TPD.
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When is inbuilt benefits cover available?
Inbuilt benefits cover you for life’s unplanned events. They may be payable if you’re temporarily or permanently unable to work, suffer a terminal medical condition or die.
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Can I change my inbuilt benefits?
As inbuilt benefits are generally provided automatically as part of your DBD membership, you can’t change or cancel them.
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Will my inbuilt benefits cease or no longer apply?
Your inbuilt benefits will usually only apply while you’re with your employer and eligible to contribute to the DBD.
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As a DBD member, is Income Protection cover available to me?
Income Protection cover isn’t available to DBD members. This is because DBD members generally have access to the inbuilt temporary incapacity benefit, which also provides an income until you’re able to return to work.
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How do I pay premiums?
The cost of inbuilt benefits is included in the DBD design, so no deductions are made from your account. The great news is you won’t have to worry about the cost of inbuilt benefits changing over time.
Premiums for your insurance cover are deducted from your accumulation balance, so there’s no need to pay separately from your hip pocket. However, for this reason, you should regularly check that you have sufficient funds to cover your premiums and that the level of insurance cover is right for you.
Glossary terms
Benefit Period – The maximum period of time you will receive an Income Protection payment after your claim has been accepted.
Claim – The process where we assess your eligibility to be paid your insurance cover after you tell us about an injury, illness or death.
Sum insured – The amount you’re insured for.
Fixed cover – The level of insurance cover will stay at the same level you choose, even as you age. However, TPD cover will reduce from age 61 until it expires at age 70.
Loading – An extra cost on top of the standard premium to account for the higher level of risk associated with your health, age or other factors.
Premium – The amount that we deduct from your super account to pay for your cover.
Underwriting – The process where our insurer assesses your application for insurance cover.
Waiting Period – The amount of time that will need to pass before any amount of Income Protection can be paid to you. There’ll be no amount payable if you recovered from your illness or injury during the waiting period.
Inbuilt benefits – Inbuilt benefits is the term used to describe benefits payable to DBD members or their beneficiaries in the event of disablement, temporary incapacity, a terminal medical condition or death.
Defined Benefit Division (DBD) – The DBD is a UniSuper product open to eligible higher education employees receiving 14% or 17% employer contributions. It provides super benefits that are based on a formula. Inbuilt benefits are generally included with DBD membership.
Types of insurance cover
Ensure you and your family have financial certainty through the difficult times with insurance through your super.
To find out more, read the Product Disclosure Statement (PDS) relevant to your membership category and the Insurance in your super booklet (PDF, 1.13 MB).