Significant Event Notice – 1 March 2016

Changes to insurance

Australian Ethical Super is proud to offer members one of the most competitive, best-value insurance arrangements on offer. Our insurance premiums have not increased for the past 3 years, and we were recently nominated as a finalist in the Money Management Adviser Choice Risk Awards.

The changes outlined in this notice are reflective of our continued commitment to provide good value, easy-to-understand insurance for our members.

Terminal Illness Benefit

In July 2015 the Government amended superannuation laws to allow earlier access to super fund monies for people suffering from terminal illnesses. The change means that the life expectancy requirement for early access has increased from 12 months to 24 months.

The driving force behind this proposal can be attributed to lobbying from breast cancer support groups, such as Breast Cancer Network Australia, to enable women suffering from secondary breast cancer, with a life expectancy of two years, to access their super to assist with medical costs.

While trustees will be required to give effect to this more generous condition of release, there is no legislated requirement to bring insurance arrangements in line with these changes.

We believe that earlier access to super fund monies could be beneficial for people suffering from a terminal illness and we have worked closely with our insurer to make this positive change to our insurance policy.

Terminally ill people can seek an early release of death benefits[1] where medical certification indicates that they have less than 24 months to live. Previously this period was 12 months.

Terminal Illness means:

  1. two Medical Practitioners, one of whom specialises in your illness, certifies in writing that despite reasonable medical treatment the illness will lead to your death within 24 months of the date of the certification; and
  2. the insurer is satisfied, on medical or other evidence, that despite reasonable medical treatment the Illness will lead to your death within 24 months of the date of the certification referred to in paragraph (a).

Premium changes

On 1 March 2016 there will be an increase to the amount you pay for your insurance. The increased cost reflects a rise in insurance claims across the industry and also the inclusion of a longer Terminal Illness benefit period. The amount of cover you currently hold will not change.

Default & Unitised Insurance

The premium for 1 unit of Death and Total & Permanent Disablement (TPD) insurance will be $1.08 per week (previously $1.00 per week).

As an example, this means that members with default cover of 3 units of Death and TPD cover, the cost of your insurance will increase from $3.00 per week to $3.24 per week.

The amount of cover provided for each unit and each age will not be changing. Please refer to the appendix for details of the default level of cover provided.

You should refer to the Insurance Guide available at australianethical.com.au/super/insurance/ for further information.

Income Protection Cover

On 1 March 2016 there will be an increase to the amount paid for Income Protection cover.

If you hold or are considering applying for Income Protection cover you should refer to the Income Protection Cover premium rate tables available at australianethical.com.au/super/insurance/ for further information.

Fixed Cover

On 1 March 2016 there will be an increase to the amount paid for fixed insurance cover. If you are considering applying for fixed cover you should refer to the Insurance Guide available at

australianethical.com.au/super/insurance/ for further information.

Occupation Category changes

As part of the insurance renewal effective 1 March 2016, the occupation categories will be renamed to make them easier to understand and more reflective of our membership.

If you have not advised us of your occupation category it will be recorded as the default category of Standard.

For members with unitised cover, the occupation category affects the level of cover you have but not the amount you pay. It is important that you advise us of your correct occupation category to make sure you have the correct level of cover. In the event of a claim the Insurer will re-assess your occupation category that applies at that time.

You can update your occupation category by completing an Insurance Variation form available at australianethical.com.au/super/forms/.

Current Occupation Category New Occupation Category
Heavy Blue (Unskilled) Basic
Heavy Blue (Skilled) Standard
Light Blue Standard Plus
White Collar White Collar
Professional Professional

What do you need to do?

This notice is for information purposes. In conjunction with this notice you should also read the updated information contained in the Insurance Guide available at australianethical.com.au/super/insurance/.

This information is general information only and does not take account of your individual investment objectives, financial situation or needs. Before acting on it, consider seeking independent financial advice.

If you wish to update your personal information this can be done through the secure member portal at australianethical.com.au/client-login/, by calling us on 1300 134 337 or emailing us at members@australianethical.com.au

Yours sincerely

Adam Kirk
Head of Client Relations

Appendix: Amount of Default Cover (White Collar Occupation)

Age Next Birthday Default Automatic Insurance
16 $221,313
17 $221,313
18 $221,313
19 $221,313
20 $221,313
21 $221,313
22 $221,313
23 $221,313
24 $221,313
25 $235,920
26 $257,967
27 $294,960
28 $331,953
29 $368,949
30 $398,502
31 $398,502
32 $398,502
33 $398,502
34 $398,502
35 $398,502
36 $398,502
37 $398,502
38 $398,502
39 $398,502
40 $398,502
41 $324,480
42 $265,440
43 $199,233
44 $157,167
45 $144,273
46 $131,349
47 $118,800
48 $106,251
49 $95,040
50 $83,487
51 $74,331
52 $65,520
53 $57,702
54 $51,258
55 $46,149
56 $41,760
57 $38,022
58 $34,629
59 $31,578
60 $28,527
61^ $26,127
62^ $23,760
63^ $21,393
64^ $18,993
65^ $16,971
66^ $14,949
67^ $13,233
68^ $11,553
69^ $10,182
70^ $8,811

^ The amount of TPD cover you have decreases when you reach age 61. 

Notes Occupation Class Death Death & TPD
  • Occupation Rating Factor to be applied to the applicable Rate of Premium for each Covered Person.
  • For the unitised cover, divide the sum insured by the applicable Occupation Rating Factor.
Professional 85% 85%
White Collar 100% 100%
Standard Plus 130% 140%
Standard 170% 200%
Basic 215% 250%

[1] Terminal illness benefit is equal to your insured death benefit, up to a maximum of $5 million.