Death Cover paid from your super can provide a lump-sum benefit if you pass away or if you meet the policy’s definition of terminal illness. This type of insurance can offer support to your beneficiaries at a difficult time by helping with expenses, such as living costs, debt repayments or other financial commitments.
At Australian Ethical, Death Cover may be available in different ways depending on how you hold your insurance:
- Default cover is provided automatically to eligible members as part of combined Death and Total and Permanent Disablement (TPD) cover — Default Death Cover is not available on its own.
- You can also apply for Voluntary cover (unitised) or Fixed cover, which may allow you to tailor the level and type of Death and TPD cover to better suit your needs and personal circumstances.
As with all insurance through super, cover is subject to the insurer’s terms, conditions and acceptance criteria. Full details, including eligibility rules and exclusions, are set out in the Insurance Guide.
Why have death cover in your super
Having death cover in your super can be an effective way to ensure your family is protected. Because insurance fees are paid from your super balance, they do not need to be paid from your take-home income.
However, insurance fees will reduce your super balance and may impact your retirement savings. You should consider whether the cover is appropriate for your circumstances and seek financial advice before making a decision.
Benefits of having death cover in super
- Potentially lower cost — Group insurance arrangements may result in lower insurance fees than obtaining similar cover outside super. Premiums and fees vary and are not guaranteed to be lower.
- It’s convenient — Insurance fees are deducted automatically from your super account, so no separate payments are required.
- Fewer medical checks — A default level of Death Cover is generally available without medical underwriting. Eligibility rules, exclusions and limitations apply, and cover is not guaranteed. Applying for Voluntary or Fixed Cover requires answering questions about your health.
- MetLife 360Health access — Members and their families have access to MetLife 360Health wellbeing support services at no additional cost. This includes support like mental health assistance, expert medical advice, nutrition, fitness and mobility services. These services are subject to availability and may change over time.
What’s covered (and what’s not)
Death Cover may pay a benefit if you pass away or if you are diagnosed with a terminal illness that meets the insurer’s medical definition and policy terms as well as the necessary conditions under superannuation law. The benefit can be used by your beneficiaries however they choose whether that is to meet household expenses, mortgage repayments or future education costs.
It is important to understand that exclusions or conditions may apply, particularly in relation to any health conditions you may have or your employment status. These are outlined in the Insurance Guide and may differ depending on your cover. Claims are assessed by the insurer.
See the full details in the Insurance Guide.
How much cover do you need?
The amount of cover that may be suitable for you can depend on your health, family situation, financial commitments and long-term financial goals. You might consider factors such as your financial dependants, household income needs, existing debts and any savings or investments.
Reviewing your insurance needs, especially after major life changes like buying a home, welcoming a child or changing jobs, can help ensure the level of Death Cover and other insurance you hold remains appropriate.
Take the next step with Australian Ethical
Death Cover can play a role in helping protect the people who matter most. If you would like support understanding your cover options or reviewing your current cover, we are here to help. You can reach out to our team for further information on the cover options. You should also consult with a financial adviser to understand your insurance needs and cover options.
Death Cover is a form of life insurance that pays a benefit if you pass away or meet the definition of a terminal illness. It may be held in or outside of super. Where Death Cover is held in super, insurance fees are paid from your super balance rather than your take-home pay.
Your cover stays with your existing super account if you change employers or super funds as long as your account remains open and insurance fees continued to be paid from your super account.
If you change employers, you can choose to keep your existing super account or move to a different super fund. If you move to a different super fund, your cover will not automatically transfer. You may lose cover if your existing account is closed (for example, if you rollover all your funds to another super fund) or becomes inactive. You may also receive new cover in a different fund. Check the new fund’s insurance and its terms, and consider whether to retain, replace or change your cover. You should consult with a financial adviser before making any changes to your insurance.
We recommend you consider seeking financial advice before making an insurance decision. This information is general in nature and does not take into account your individual objectives, financial situation or needs. Before making a decision, consider whether it is appropriate for your circumstances and read the Product Disclosure Statement, including the Insurance Guide.