Why is your insurance changing?

We’re making changes to our insurance offering from 14 October 2020, including changes to Death cover, Total and Permanent Disablement (TPD) cover and Income Protection. 

We’ve reviewed our offering to take into consideration the ‘Putting Members’ Interests First (PMIF)’ legislation introduced by the Federal Government on 1 April 2020. These legislation changes and external pressures have generally resulted in increased premiums across the super industry. However we've worked with our insurer to ensure our offering better reflects our members’ life stages and characteristics, while keeping our premiums fair and competitive.

Things to know:
  • please take a look at our new rates tables for the new premiums and level of cover from 14 October 2020. Premiums are deducted from your account at the end of each month, and generally increase annually on your birthday
  • there's some updates to the Terms and Definitions which may impact you depending on your situation. Please read them along with our Insurance Guide to understand the details of these changes and what they may mean for you
  • we're also making some changes to the names we use for occupation categories so they're easier to understand
  • Australian Ethical does not take any commissions or have any profit-sharing arrangements with the Insurer and any tax rebates received for premiums paid are put back into your super account

You can check your insurance cover and premiums in your member portal.

You won’t be able to see your updated insurance or make any insurance changes in the portal between 14 October and 21 October 2020 while we're finalising these changes.

What are the changes?


Default Cover changes

Default Death and TPD Cover is changing and the amount of cover you receive will be based on your age. 

We’ll now be looking at the following factors to work out your premiums:

  • your age - this will be used to work out how much cover you receive and the premiums you pay, which will change each year
  • your sex at birth – we need to collect information about the chromosomal sex at birth of our members because this affects the overall cost of default group insurance cover which is automatically available to all members of the Fund. We understand sex at birth is different to gender identity. Your sex at birth will be used to work out the premiums you pay
  • your occupation – your occupation category will now be used to work out your premiums and will no longer impact the amount of cover you have.

If you currently have Default Cover with no other insurances with us, and you're in a ‘Manual’ occupation (previously known as ‘Standard’), you'll automatically be moved to ‘Light Manual’ on 14 October 2020 - which has lower premium rates than ‘Manual’ (if all other factors remain the same).

Fixed Cover changes
  • Fixed Cover premiums are changing. Please see our new rates tables for the new premiums that will apply from 14 October 2020
  • There'll also no longer be a distinction between Employer-Sponsored members and Personal members.

What are your options?

If you have 3 units of Default Death & TPD cover, you can work out your new level of cover and premiums by checking the New Default Cover rates.

To check what occupation category we have for you, please log into your member portal and go to ‘Manage Insurance’. If this occupation category isn't correct, let us know by completing the Insurance Variation Form as this will impact the premiums you pay.

Your options:

1. Do nothing and you'll automatically move to your New Default Cover from 14 October 2020. The amount of insurance cover you have under the New Default Cover also changes over time, typically reducing after 40 years of age; or

2. Keep the amount of Current Default Cover you'll have on 13 October 2020 by choosing to fix it, with no medical screening required. You should consider the new Fixed Cover Rates and you’ll need to complete this form by 13 October 2020 at the latest.  

You always have the option to cancel, vary or apply for additional insurance. You can do this by logging onto your member portal.

To see a copy of the email outlining these changes click here. If you have 3 units of Default Cover and Income Protection see this version instead.

If you've previously chosen tailored Death or Death & TPD insurance cover with a specific number of units unfortunately this type of cover will no longer be available and the closest alternative is fixed insurance. This means that from 14 October 2020 your insurance will automatically become Fixed Cover, without medical screening, and your premiums will change.

The amount of Fixed cover you receive will remain the same until you turn 61 (subject to maximum insurable age restrictions). From 61, your TPD will reduce each year in equal stages until it reaches zero at 70. 

Your premiums will change to the new Fixed Cover Rates and will be based on the new level of Fixed Cover that you’ll receive on 14 October 2020, as well as your age, sex at birth, smoker status and occupation category. The premiums may be different than what you pay now. You should also note that generally, insurance premiums increase annually on your birthday. 

Your options: 

1. Do nothing and your cover on 13 October 2020 will automatically move to your new Fixed Cover from 14 October 2020 (no medical screening is required); or 

2. If you don’t want your cover to become Fixed, you’ll need to complete this form by 13 October 2020, to replace it with our New Default Cover. Please review our new Rates tables to understand the premiums, level of cover and the new terms and conditions that apply.

You always have the option to cancel, vary or apply for additional insurance. You can do this by logging onto your member portal. 

If the occupation category and smoking status we have recorded for you in your member portal aren't correct, please let us know by completing the Insurance Variation Form as this will impact the premiums you pay.

Important: If you've previously been accepted for cover with exclusions or loadings, these will still apply to your current and new insurance. Please check your original acceptance letter for those details.

To see a copy of the email outlining these changes click here

If you have Fixed Cover, your amount of cover won’t change (although TPD cover does reduce from age 61 until it reaches zero at 70), but your premiums will change from 14 October 2020. To see your new premiums please take a look at the new Fixed rate tables.

You always have the option to cancel, vary or apply for additional insurance. You can do this by logging onto your member portal. 

To see a copy of the email outlining these changes click here

If you don’t currently have insurance with us, but you’d like to, then there's some things you need to know.

If you're under 25 or haven’t had an account balance of at least $6,000

Even though you don’t have insurance yet, it can be turned on automatically without medical screening in one of the following ways:

  • you opt-in to start your insurance by completing this form;* or
  • as you turn 25 years old or above (but under 65), and your account is active and has a balance of at least $6,000.*

Please see the terms and conditions that apply to the New Default Cover. 

*If you start your insurance before 14 October 2020 you can choose to either move to the New Default cover or change to Fixed Cover without medical screening.

If you've opted out of (or cancelled) insurance

If you've opted-out or cancelled your Default insurance, you’re not eligible to have this type of cover again. However, you can still apply for cover under our new Fixed cover offering.

To see a copy of the email outlining these changes click here

Please read the new terms and definitions for further details about your options.

What is insurance inside of super?

Having life insurance can be a part of your financial wellbeing. It may help you or your family stay protected if something unexpected happens such as an accident, illness, or worst case scenario, death.

You don’t really want to think about something bad happening to you or someone you love and yet, if something does happen that is life-changing or life-ending, having life insurance can be a real comfort. 

If you're not sure what insurance inside super is, here's a 2 minute video to explain.

video_insurance_inside_super-1572995218232.jpgThis video is provided by MetLife Insurance Ltd ABN 75 004 274 882, AFSL 238096.