Insurance through your super

Australian Ethical Super offers automatic insurance of three units of default Death and Total and Permanent Disablement (TPD) insurance (‘Default Cover’) at a cost of $4.23 per week. As we know our members are all very different, you have the option to tailor this insurance to suit your needs. From 1 April 2020, Default cover is automatically provided when you reach age 25 and have had an account balance of at least $6,000.  If you’d like to have cover before these conditions are met, you can let us know here.

Insurance can be complicated, so it might be a good idea to speak to a financial advisor to determine your insurance needs, and if the cover provided by the fund is suitable for you.

There are some circumstances that can complicate receiving insurance, such as having a pre-existing illness, injury or condition. Our Insurance Guide outlines all the important terms and conditions that apply.

You can cancel your default (automatic) insurance at any time - find out how

What’s so good about having insurance through super?

Death and TPD insurance can provide you or your loved ones with financial support if the unexpected happens.

There are some advantages of having insurance through your super rather than buying it yourself outside of super, such as:

  • it’s often cheaper – group buying power generally means you enjoy lower premiums compared to buying insurance yourself
  • it’s convenient – because your premiums automatically come out of your super account and not from your take home pay, and – you don’t have to remember to pay for it!
If you receive 3 units of Default (automatic) Cover when you meet the above conditions and do not opt out of insurance, an annual premium of $219.96 will be automatically deducted from your account in monthly instalments.

What is Fixed Cover?

You also have the option to take out ‘fixed cover’ which means you choose the dollar amount of insurance you want (in multiples of $1,000), and this will remain fixed up until age 60.

Typically, the premiums you pay for fixed cover will increase as you get older and they depend on your occupation category, employer sponsored or personal member, and whether you’re a smoker or non-smoker. From age 61 the amount of fixed cover you have decrease with age.

Once you have fixed your cover, you won't be able to reverse back to unitised cover. 

A little question is a big deal when shaping your experience with us

When it comes to insurance, we do have to ask your biological sex. We understand this question can be intrusive and not very inclusive, but unfortunately it affects the premiums you pay and other insurance-related features, like cover for certain health issues. This is because the risk of death and injury for an individual is affected by their chromosomal sex at birth.

One of the benefits of our fund is that all new members are provided with default insurance cover and you can opt-out if you want to. Knowing who is in our fund helps the insurer predict the risk of potentially covering all those that join us.

It’s also worth noting that some of our competitors don’t offer insurance when you first apply but ask for this information later.

If you’ve received an employer contribution, you’ll be considered an employer sponsored member unless your employer contributions stop, in which case you may be reclassified as a personal member.

You can refer to our premium rates tables for fixed cover in our insurance guide.

To change your default (automatic) cover or apply for an increased amount of cover you can log into your account and select ‘manage insurance’ and go from there. Alternatively, you can complete the Insurance Variation Form or the Insurance Application Form and send it back to us.

Types of insurance

It’s a good idea to understand what your personal needs and circumstances are when deciding what type of insurance is right for you.

If you have dependents, you may want to consider the amount of money they would need to support themselves if you were unable to work, either temporarily or permanently, or if you passed away. Having insurance means you’ll be able to provide your family with financial protection should the unexpected happen.

If you don’t have any dependents, having income protection will help you if you become ill or injured for some time and you’re no longer able to work. Having income protection means you’ll still be able to meet your day-to-day living expenses paid out to you as an income stream for a specific period.

There are three main types of insurance inside your super for you to consider.

Death Cover

Death & TPD

Income protection

Death insurance pays a lump sum amount to your loved ones if you die or are diagnosed with a terminal illness. Death & TPD insurance is designed to provide financial support if you die, are diagnosed with a terminal illness or suffer an illness or injury that leaves you totally and permanently disabled and unable to work again. Income protection provides you with an income to help meet your living expenses if you're not able to work for a period due to illness or injury. This cover is subject to applicable waiting and benefit periods chosen.

Please read our Insurance Guide for complete definitions of the types of insurance and the terms and conditions that apply.

Australian Ethical Super doesn't provide standalone TPD cover. You can only insure for TPD through the Fund if you have Death cover.

What is Death cover?

This type of cover is designed to provide your family, or any nominated beneficiaries with a sum of money/regular income stream if you were to pass away. It also provides a benefit if you’re diagnosed with a terminal illness.

What is Death & Total and Permanent Disablement (TPD)?

If you’re a member of Australian Ethical Super you are likely to have Death & TPD cover by default (unless you cancelled your cover, or you are a new member since 1 April 2020 are younger than 25 and or/ your account balance hasn’t reached  $6,000 and you haven’t opted in to have cover).  

Death and Total & Permanent Disablement insurance provides cover if you die, are diagnosed with a terminal illness and are unable to work due to an injury or illness which leaves you totally and permanently disabled.

It can help cover the costs of rehabilitation, debt repayments and the future cost of living.

From 1 April 2020, you can receive Death and TPD cover in three ways. 

  1. You receive 3 units of Default Cover automatically when you have had an account balance of $6,000 and are 25 or older (or earlier if you opt-in upon joining the fund).
  2. You can apply for additional units of Death and TPD.
  3. You apply for a fixed amount of Death and TPD.

Australian Ethical Super doesn't provide standalone TPD cover. You can only insure for TPD through the Fund if you have Death cover.

What is Income Protection Insurance?

Income protection insurance can provide up to the lowest of  (i) the amount of cover you have nominated (ii) 85% of your monthly Income (where 75% of your monthly income will be paid to you in as income with the balance of 10% paid as superannuation contribution) or (iii) $30,000 per month for any time you’re off work due to injury or illness.

You can apply for income protection cover by logging into your account and selecting ‘manage insurance’ and go from there. Alternatively, you can complete the Insurance Application Form on our website.

Please refer to the Insurance Guide for detailed information about this insurance option including waiting periods, returning to work and other important conditions. You can call us on 1300 134 337 for help.

Transferring insurance from another fund

You may be able to transfer your insurance (Death, Death & TPD or Income Protection) from another complying super fund to Australian Ethical Super.

Your cover will need to be current and the policy with the other fund needs to be of a similar nature to the cover provided by Australian Ethical’s Super’s insurance arrangements. Any exclusions or loadings you have on your insurance with your current fund will apply to your Australian Ethical Super account.

To transfer your insurance, you’ll need to complete the Transfer of Cover Form and provide your most recent super statement to verify the amount of cover.

Once your transfer of cover has been accepted by Australian Ethical Super, your cover automatically becomes fixed. This means you won't be able to convert to unitised cover.

It’s important you don’t cancel your current insurance cover with your existing fund until Australian Ethical Super accepts your transfer of cover application.

Only after you have received confirmation that you’re covered under Australian Ethical Super’s insurance arrangements, you can cancel your previous cover so that you’re not doubling up.

The Insurer may decline to pay benefits if you concurrently hold two or more policies of a similar nature.