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 in the amount you pay for your insurance cover. 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.

Fixed Cover

The cost of your fixed insurance cover will increase by an average of 8%. The new insurance rate tables can be found in the appendix to this notice as well as in the Insurance Guide available at australianethical.com.au/super/insurance/.

You can update or change your level of cover by completing an Insurance Variation form available at australianethical.com.au/super/forms/. Further information can also be provided by calling us on 1300 134 337 or emailing us at members@australianethical.com.au.

Default & Unitised Insurance

On 1 March 2016 there will be an increase to the amount paid by members who hold default or unitised cover. The premium for 1 unit of Death and Total & Permanent Disablement (TPD) insurance will be $1.08 per week (previously $1.00 per week).

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.

Occupation Category changes

 As part of the insurance changes 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.

The occupation category we have recorded for you may directly affect the amount you pay for your cover. It is important that you advise us of your correct occupation category to make sure you are paying the correct premium. 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: Rate Tables

Employer sponsored member – Fixed Cover Rate of Premium

Notes:

Age Next Birthday Males Females
Death Only Death &TPD Death Only Death &TPD
16 $0.30 $0.31 $0.12 $0.13
17 $0.32 $0.33 $0.12 $0.13
18 $0.38 $0.39 $0.15 $0.16
19 $0.43 $0.44 $0.16 $0.17
20 $0.44 $0.46 $0.16 $0.17
21 $0.45 $0.47 $0.15 $0.17
22 $0.44 $0.47 $0.15 $0.17
23 $0.43 $0.49 $0.15 $0.16
24 $0.42 $0.47 $0.14 $0.15
25 $0.41 $0.48 $0.13 $0.15
26 $0.40 $0.47 $0.13 $0.15
27 $0.38 $0.46 $0.12 $0.15
28 $0.37 $0.45 $0.13 $0.16
29 $0.36 $0.46 $0.13 $0.18
30 $0.36 $0.46 $0.14 $0.19
31 $0.36 $0.46 $0.16 $0.22
32 $0.36 $0.48 $0.16 $0.23
33 $0.36 $0.49 $0.18 $0.26
34 $0.38 $0.51 $0.19 $0.28
35 $0.39 $0.54 $0.21 $0.33
36 $0.40 $0.57 $0.23 $0.37
37 $0.42 $0.62 $0.25 $0.42
38 $0.43 $0.67 $0.28 $0.47
39 $0.47 $0.74 $0.31 $0.53
40 $0.50 $0.80 $0.33 $0.60
41 $0.55 $0.90 $0.37 $0.68
42 $0.59 $0.99 $0.41 $0.77
43 $0.64 $1.09 $0.44 $0.86
44 $0.70 $1.22 $0.48 $0.94
45 $0.76 $1.36 $0.50 $1.02
46 $0.82 $1.52 $0.55 $1.13
47 $0.90 $1.70 $0.57 $1.24
48 $0.98 $1.90 $0.62 $1.39
49 $1.07 $2.13 $0.67 $1.53
50 $1.11 $2.35 $0.68 $1.60
51 $1.23 $2.66 $0.69 $1.79
52 $1.34 $2.99 $0.77 $2.03
53 $1.47 $3.36 $0.87 $2.30
54 $1.60 $3.77 $0.95 $2.57
55 $1.76 $4.24 $1.04 $2.85
56 $1.91 $4.70 $1.13 $3.14
57 $2.06 $5.22 $1.25 $3.47
58 $2.25 $5.85 $1.37 $3.82
59 $2.44 $6.55 $1.48 $4.20
60 $2.66 $7.38 $1.59 $4.63
61 $2.90 $8.18 $1.70 $5.07
62 $3.17 $9.03 $1.82 $5.60
63 $3.45 $9.93 $1.98 $6.22
64 $3.75 $10.94 $2.15 $7.00
65 $4.07 $12.01 $2.35 $7.89
66 $4.55 $15.01 $2.66 $8.94
67 $5.11 $17.10 $2.97 $10.13
68 $5.79 $19.49 $3.36 $11.48
69 $6.54 $22.19 $3.80 $12.99
70 $7.39 $25.29 $4.30 $14.72

Employer Sponsored Member – Occupation Rating Factor

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%


Personal member – Fixed Cover Rate of Premium

Notes:

Age Next Birthday Male Female
Non-smoker Smoker Non-smoker Smoker
Death Only Death & TPD Death Only Death & TPD Death Only Death & TPD Death Only Death & TPD
16 $0.33 $0.36 $0.63 $0.69 $0.12 $0.13 $0.23 $0.26
17 $0.33 $0.36 $0.63 $0.69 $0.12 $0.13 $0.23 $0.26
18 $0.35 $0.38 $0.67 $0.74 $0.13 $0.14 $0.25 $0.27
19 $0.39 $0.44 $0.74 $0.83 $0.14 $0.16 $0.28 $0.31
20 $0.41 $0.48 $0.79 $0.91 $0.15 $0.17 $0.29 $0.35
21 $0.44 $0.51 $0.83 $0.97 $0.14 $0.17 $0.28 $0.34
22 $0.44 $0.53 $0.85 $1.00 $0.14 $0.16 $0.27 $0.33
23 $0.45 $0.54 $0.87 $1.06 $0.13 $0.16 $0.26 $0.32
24 $0.45 $0.55 $0.87 $1.07 $0.13 $0.16 $0.25 $0.32
25 $0.45 $0.55 $0.85 $1.06 $0.12 $0.17 $0.24 $0.32
26 $0.44 $0.56 $0.83 $1.06 $0.13 $0.16 $0.25 $0.33
27 $0.42 $0.55 $0.81 $1.04 $0.13 $0.18 $0.26 $0.35
28 $0.42 $0.55 $0.80 $1.04 $0.14 $0.19 $0.27 $0.36
29 $0.41 $0.54 $0.78 $1.04 $0.14 $0.21 $0.28 $0.41
30 $0.40 $0.54 $0.76 $1.03 $0.15 $0.23 $0.30 $0.44
31 $0.40 $0.54 $0.76 $1.03 $0.16 $0.24 $0.31 $0.48
32 $0.40 $0.54 $0.75 $1.04 $0.18 $0.28 $0.33 $0.53
33 $0.40 $0.55 $0.76 $1.05 $0.19 $0.32 $0.35 $0.58
34 $0.40 $0.56 $0.76 $1.07 $0.20 $0.35 $0.38 $0.65
35 $0.41 $0.60 $0.78 $1.13 $0.22 $0.38 $0.41 $0.72
36 $0.42 $0.63 $0.81 $1.21 $0.24 $0.44 $0.45 $0.81
37 $0.44 $0.68 $0.84 $1.29 $0.26 $0.48 $0.49 $0.90
38 $0.46 $0.74 $0.89 $1.41 $0.29 $0.53 $0.54 $1.02
39 $0.49 $0.80 $0.94 $1.53 $0.31 $0.60 $0.60 $1.13
40 $0.53 $0.89 $1.00 $1.69 $0.34 $0.67 $0.66 $1.28
41 $0.57 $0.97 $1.07 $1.83 $0.38 $0.74 $0.71 $1.42
42 $0.61 $1.04 $1.14 $1.98 $0.41 $0.83 $0.78 $1.58
43 $0.65 $1.14 $1.24 $2.16 $0.45 $0.93 $0.87 $1.78
44 $0.69 $1.22 $1.32 $2.33 $0.49 $1.02 $0.94 $1.96
45 $0.74 $1.34 $1.41 $2.55 $0.54 $1.14 $1.02 $2.17
46 $0.80 $1.47 $1.52 $2.80 $0.59 $1.28 $1.11 $2.41
47 $0.87 $1.63 $1.64 $3.08 $0.64 $1.40 $1.21 $2.66
48 $0.94 $1.80 $1.78 $3.41 $0.69 $1.54 $1.31 $2.93
49 $1.03 $2.01 $1.96 $3.81 $0.74 $1.69 $1.41 $3.21
50 $1.13 $1.77 $2.15 $3.56 $0.80 $1.85 $1.52 $3.52
51 $1.25 $1.94 $2.38 $3.89 $0.87 $2.03 $1.64 $3.86
52 $1.38 $2.09 $2.63 $4.19 $0.93 $2.22 $1.77 $4.21
53 $1.53 $2.26 $2.90 $4.56 $1.01 $2.43 $1.91 $4.62
54 $1.67 $2.45 $3.23 $4.90 $1.09 $2.68 $2.07 $5.09
55 $1.81 $2.66 $3.58 $5.32 $1.19 $2.98 $2.27 $5.66
56 $1.95 $2.87 $3.90 $5.72 $1.28 $3.34 $2.50 $6.32
57 $2.10 $3.09 $4.21 $6.19 $1.36 $3.75 $2.73 $7.12
58 $2.28 $3.35 $4.55 $6.69 $1.45 $4.25 $2.90 $8.05
59 $2.46 $3.61 $4.92 $7.22 $1.57 $4.82 $3.12 $9.13
60 $2.66 $3.90 $5.31 $7.81 $1.66 $5.47 $3.32 $10.37
61 $2.87 $4.22 $5.75 $8.45 $1.75 $6.21 $3.50 $11.79
62 $3.12 $4.58 $6.25 $9.18 $1.85 $7.06 $3.71 $13.40
63 $3.39 $4.97 $6.77 $9.94 $1.98 $8.02 $3.96 $15.22
64 $3.67 $5.39 $7.33 $10.77 $2.09 $9.09 $4.18 $17.24
65 $3.98 $5.85 $7.96 $11.69 $2.21 $10.26 $4.42 $19.49
66 $4.48 $6.58 $8.96 $13.16 $2.55 $11.47 $5.11 $21.77
67 $5.07 $7.44 $10.14 $14.89 $2.88 $12.86 $5.77 $24.41
68 $5.85 $8.59 $11.70 $17.18 $3.33 $14.38 $6.64 $27.27
69 $6.75 $9.90 $13.48 $19.80 $3.82 $16.02 $7.65 $30.39
70 $7.71 $11.32 $15.43 $22.67 $4.40 $17.82 $8.79 $33.80

Personal Member – Occupation Rating Factor

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.