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.

Australian Ethical Super offers automatic insurance of three units of default Death and TPD insurance (default cover) without the need to complete forms or have medical examinations. Your default insurance is unitised which means it is measured in blocks of cover called ‘units’.

From 1 April 2020, Default cover is automatically provided when you reach age 25 and have had an account balance of $6,000. If you’d like to have cover before these conditions are met, you can let us know here.

You pay a set price for each unit and the amount of insurance you’re covered for depends on your age and occupation category. You’ll be automatically classified in the Standard occupation category unless you update your insurance details through our member portal, send us an, or you call us to let us know.

Unitised cover reduces with age and reduces significantly after the age of 40. To see what the rates are, refer to the Amount of Default Cover 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 1 July 2019.

Additional two units (automatic acceptance)

You can receive up to two additional units of insurance without underwriting if you’re an employer sponsored member (not self-employed) who has their first superannuation guarantee contribution received by the fund within six months of being first eligible.

Each additional unit costs $1.41 per week.  This additional insurance is subject to you meeting the active employment criteria.  For more information on taking up additional insurance units, refer to our Insurance Guide.

The application for additional two units must be received within 60 days of your first super contribution. You can apply for these units by completing the Insurance Variation Form.

Cover for special life events

You can also apply for ‘life events cover’, which increases your insurance when major milestones happen, such as getting married, having children, or getting a mortgage. You’ll need to apply within 60 days of the life event, or within 30 days of your member statement after the event. You can apply for this cover by completing the Insurance Variation Form.

Refer to the Default Cover section in the Insurance Guide for more information about eligibility for Default Cover. 

If you want to change your cover (opt out, reduce or fix your cover or apply for additional units under automatic acceptance), you can log into your account and select ‘manage insurance’ and go from there. Alternatively, you can complete the Insurance Variation Form.

Otherwise, if you want to apply for additional units at any other time, you can log into your account and select ‘manage insurance’ and go from there or you can complete the . 

We’ll let you know when the application or variation 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.

Simple tips to help make sure you have the right level of cover

  1. Find out your current level of cover. For Australian Ethical Super members login to our member portal or call us on 1300 134 337.
  2. 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.
  3. 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.
  4. 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.
  5. Insurance can be complicated, it might be a good idea to speak to a financial adviser about your insurance needs.