Your insurance cover needs
Having the right type of insurance and the right level of insurance cover is an important part of planning for the future and protecting the finances of yourself and your family. While people insure their car and home, when it comes to personal insurance many people are under-insured. Think about how you or your family might cope financially if you were not able to work either temporarily or even permanently due to illness or injury or in the event of your death.
Insurance can be complex, so we recommend you speak with a licensed financial adviser before making a decision about your insurance needs.
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 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.
You’ll be automatically classified in the Light Manual occupation category unless you update your insurance details by completing an Insurance Variation Form.
Default Cover reduces with age and reduces significantly after the age of 40. To see what the rates are, refer to the table in our Insurance Guide.
Insurance rates tables
We’ve worked with our insurer to keep our rates competitive, look at our insurance rates tables to find your rate. These rates are effective from 14 October 2020.
New Member Offer
You can apply to increase your Default Cover up to a certain limit, as long as you do it within 120 days of joining us and you meet certain conditions including your super account receiving at least one employer contribution. You must have completed the New Member Offer application and submitted it to us within 60 days of your first employer contribution. You can't apply for New Member Offer cover if you don’t have Default Cover.
Cover for special life events
You can apply for additional Death and TPD cover up to a certain limit if you experience a specific life event, such as marriage or having a child. You can only apply for Life Events cover once and if you already have Default or Fixed Death and TPD insurance cover.
You’ll need to apply within 60 days of the life event, or within 30 days of your member statement after the event. Please refer to the Insurance Guide for more information. You can apply for this cover by completing the Insurance Variation Form.
Changing your cover
If you want to change your cover (cancel, reduce or fix your cover), you can log into your account and select ‘manage insurance’ and go from there. Alternatively, you can complete the Insurance Variation Form.
We’ll let you know when your application form has been accepted by the Insurer and comes into effect.
When you’re considering the amount of cover that is right for your circumstance, the types of things to take into account are:
- your personal debt
- the future education costs of your children
- your current lifestyle if you could not work for an extended period – or if you were never able to work again
- whether you and your family have other financial resources you could draw on if you were unable to work or passed away.
Please note that if you apply to increase or decrease your Default Death and TPD Cover (including if you cancel your TPD Cover) and it is accepted by the insurer, your insurance cover will be converted to Fixed Cover and Fixed Cover premium rates will apply. This does not apply if you apply to increase your Default Cover by applying for New Member Offer or Life Events Cover.
Simple tips to help make sure you have the right level of cover
- Find out your current level of cover. For Australian Ethical Super members login to our member portal or call us on 1300 134 337.
- Don’t just settle for default cover – use a calculator like the one at MoneySmart to help you with the expense details you should factor in. If you want to increase your cover, take a look at our Insurance Guide which explains how to change your level of cover or apply for additional cover.
- Let us know about big life changes. If you get married, have children, buy a property or get promoted this may change the level of cover you need. You’ll need to apply within 60 days of the big life change, or within 30 days of your member statement after the event – whichever occurs later.
- If you have multiple super accounts, you might want to consolidate your super and insurance with one provider. Just remember that different insurance companies have different rules. So before switching, check that you can transfer to the same level of cover that you’re currently on to make sure you don’t lose insurance cover that you might actually need. Australian Ethical Super is only a phone call away if you want more information.
- Insurance can be complicated, it might be a good idea to speak to a financial adviser about your insurance needs.