Insurance through your super

What is Default Cover?

Australian Ethical Super offers default Death and Total and Permanent Disablement (TPD) insurance (‘Default Cover’). The amount of Default Cover you receive is based on your age. Insurance premiums are paid monthly from your super account and are based on your age, occupation category and sex at birth. 

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 are 25 or older (but under 65) and have had an account balance of $6,000 (as long as you don't have an inactive account and haven't previously cancelled any insurance held through the Fund). 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 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 Default Cover when you meet the above conditions and do not cancel insurance, annual premiums (based on your age, sex at birth and occupation category) will be automatically deducted from your account in monthly instalments unless you tell us you wish to cancel this cover.

What is Fixed Cover?

You also have the option to take out ‘Fixed Cover’ which means you choose the dollar amount of Death only or Death & TPD insurance you want (in multiples of $1,000). You will be required to complete a series of health questions which will need to be accepted by the Insurer. Fixed Death cover will remain fixed up until age 70.  The amount of fixed TPD cover however decreases after the age of 60 until it reaches zero when you turn 70.

Typically, the premiums you pay for Fixed Cover will increase as you get older and they depend on your occupation category, sex at birth and whether you’re a smoker or non-smoker. 

You may be required to provide additional information depending on the cover amount you are applying for and your personal circumstances.

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 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.

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.

Having income protection can help you if you become ill or injured for some time and you’re no longer able to work. Having income protection can help you meet your day-to-day living expenses paid out to you as an income stream for a specific period, after a waiting period has been served.

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 can provide 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, after having served a waiting period. 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 as income with the balance of 10% paid as a superannuation contribution) or (iii) $30,000 per month for any time you’re off work due to injury or illness.

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.

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 be assessed by our insurer to ensure that these exclusions and loadings should apply. 

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 (no older than 6 months). If you can't provide a current statement, you will need to provide an up-to-date certificate of currency or letter from their previous super fund confirming the level of cover, cover type and any exclusions or loadings.

Once your Transfer of Cover is accepted, all your cover (including any Default Death and TPD Cover you may have) becomes Fixed Cover. However, if you don’t hold Default Cover before your Transfer of Cover is accepted, you will not be eligible to obtain Default Cover in the future.

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.

IMPORTANT: If the transfer of your insurance cover is accepted, but you continue to hold the insurance cover transferred to Australian Ethical Super elsewhere, then any benefit paid to you under insurances held through Australian Ethical Super will be reduced by the amount of insurance cover that you continue to hold elsewhere that is the subject of your transfer cover application.