When people think of their superannuation benefits, they usually think of the accumulation of contributions and investment earnings that they will be able to access during retirement.
But another benefit of your superannuation is the insurance cover available.
At First Super, we offer three types of insurance cover:
Death cover provides a lump sum payment in the event of your death, or on diagnosis of a terminal illness. It can be used for your debts, your funeral, or to help your family pay the bills that keep coming in.
TPD cover provides a lump sum payment if you become totally and permanently disabled. It can be used for your ongoing bills (such as mortgages and living expenses) and for your medical expenses.
Income protection cover provides you with an ongoing payment if you can’t work for a long period because you are sick or injured. You can receive up to 85% of your income while you’re off work (depending on your level of cover). This way, you don’t have to think about the bills. You can concentrate on recovering.
Default insurance cover of 4 units of Death and TPD is provided automatically to all members who meet General Eligibility (see below) and to those who have made a Valid Election (opted in). This costs $11.20 per week ($5.12 per week if you are eligible for low-risk rates and $4.64 per week if you are eligible for professional rates), subject to eligibility conditions being met.
Before making any decision about insurance cover, we recommend that you consider the impact that insurance premiums may have on your account balance and whether you hold other superannuation accounts that provide insurance cover.
If you would like personal advice about your insurance options, First Super offers intrafund advice with our authorised Financial Planners# at no additional cost to members. Contact the Member Services Team to book an appointment.
OKAY, BUT WHY FIRST SUPER?
- There are no out of pocket expenses as the premiums are paid through your super;
- You’ll get competitive premiums as First Super negotiates group purchase rates on behalf of its members;
- Flexible options to suit your needs and circumstances
- You won’t need to get an initial health check; and
- You can change your level of cover any time.
ELIGIBILITY REQUIREMENTS
The basic eligibility requirements are that the member is:
- an Australian citizen, a permanent resident of Australia, or a non-citizen for whom an employer is required to make superannuation guarantee contributions; and is either:
- aged between 11 and 69 years (for Death and TPD cover); and
- aged between 16 and 64 for Income Protection Insurance.
Default cover for a new member is provided automatically if the member meets the above conditions and General Eligibility (see below), and satisfies the following requirements:
- the member is aged 25 and above; and
- the member’s account balance has reached at least $6,000 at least once
- a contribution or rollover has been made into your First Super account within 16 months of your account balance value reaching $6,000.
- the member has made a “Valid Election” (opted in).
Please note that Putting Members’ Interests First legislation, effective from 1 April 2020, requires super funds to provide insurance on an “opt-in” basis only to:
- members whose super balances are below $6,000; and
- members who are under age 25 and hold a new super account from 1 April 2020.
If you fall into either of these categories, this means that you must make a Valid Election (opt in) to have insurance. If you don’t opt in, you will not receive any automatic default insurance cover until you meet the General Eligibility criteria (as detailed below).
Members who joined First Super on or after 1 April 2020 can opt to have insurance by:
- completing our online Insurance Opt-in Form
- completing and returning the printed Insurance Opt-in Form, which we send with new member welcome packs.
# Intrafund advice and full service financial advice is provided by First Super Financial Planners, who are authorised representatives of Industry Fund Services Limited (IFS) (ABN 54 007 016 195, AFSL 232514).
BENEFITS OF METLIFE
First Super provides peace of mind when it comes to your insurance. Backed by MetLife; one of the world’s largest insurers we understand the emotional and financial value of providing the right protection to you and your loved ones. MetLife has over 145 years’ experience providing assurance to 100,000,000 customers in more than 40 countries worldwide. MetLife offers reliability, stability and insurance to meet your specific needs.
WHAT YOU NEED TO KNOW
For full details about the insurance offered by First Super, the terms and conditions, the rates tables, and the key definitions, please read our Insurance booklet. You’ll find responses to some of the most frequently asked questioned about our insurance products below.
General Eligibility
A member meets the General Eligibility criteria if:
- he or she is aged between 11 and 69 (inclusive) and
- he or she is not a person who elects not to have insurance cover held on his or her behalf and
- has not been paid or been eligible to receive a Total and Permanent Disablement (TPD) benefit from any superannuation fund (including First Super) or any other policy of life insurance.
If a person has been paid or is eligible to receive a TPD benefit from any superannuation fund (including First Super) or any other policy of life insurance, any further TPD cover will be restricted to Limited Cover.
Eligibility for default cover (automatic)
Default cover for a new member is provided automatically if the member meets General Eligibility and satisfies the following requirements:
> the member is aged 25 and above; and
> the member’s account balance has reached at least $6,000 at least once, OR
> the member has elected that cover should continue to be provided even if he or she is aged under 25 or has an account balance below $6,000.
Eligibility for default cover (opt in)
Default cover is provided automatically if the member meets General Eligibility, and: > cover had not already commenced (cover via automatic commencement);
> had not previously opted out or cancelled cover or cover ceased for any reason;
> the Fund receives a Valid Election from the person for default cover to commence.
If you wish to keep the default insurance cover provided, no action is required. However, we will be required to cancel your cover the Friday immediately prior to a continuous 16-month period during which no Active Contribution has been received on your behalf unless a Valid Election has been made.
When you join First Super you will be covered automatically for 4 units of Death and TPD, provided you are aged between 11 and 69 years, subject to eligibility conditions being met1 (see ‘Eligibility’ details above).
You then have several options, including:
> dropping some or all of the default insurance cover;
> keeping the default insurance cover provided;
> changing to the lower cost low-risk or professional rates if you qualify for them;
> doubling your default insurance cover without the need to provide health evidence (Employer-Sponsored members only);
> fixing the value of your default insurance cover so it doesn’t decline over time;
> applying for more units of insurance;
> applying for a fixed amount of insurance; or > transferring other insurance you have into First Super2.
- Note: if you have previously been paid or been eligible to receive a Total and Permanent Disablement benefit, your Total and Permanent Disablement insurance is only covered by Limited Cover. You should contact First Super for more information.
- Subject to conditions.
This means a member being covered only for claims arising from a New Event.
New Event means an illness which first becomes apparent or an injury which first occurs on or after the date that cover last commenced, recommenced, or was reinstated in respect of the member.
For more details on Limited Cover see page 16 of the Insurance booklet.
You may be able to transfer your current insurance arrangement up to the value of $1.5 million to first super without having to provide medical evidence.
If you wish to apply to transfer other insurance cover you have into First Super, you can do this at any time by completing the Application to Transfer Insurance Cover Form.
Please contact our Member Services Team for further details.
Where cover stops due to lack of Active Contribution for 16 months or more:
Default cover (standard member rating) recommences on the date an Active Contribution is received, where the member:
- is aged 25 and above; and
- has an account balance that reached $6,000 or more at least once; or
- upon the application for underwritten cover and acceptance by the Insurer.
Limited Cover conditions will apply.
Where cover has ceased on 1 April 2020 due to an account balance being less than $6,000
Default cover will recommence once the member has satisfied the eligibility requirements set out in ‘Eligibility for default cover (automatic)”.
The cover that recommences will be default cover (standard member rating), and Limited Cover conditions apply.
Death and TPD insurance cover doesn’t cover claims caused directly or indirectly by war or an act of war outside of Australia, although the Insurer may offer to continue insurance cover in exchange for increased premium rates in some circumstances.
First Super and its service providers must comply with the law when making benefit payments, and a benefit cannot be paid where to do so is likely to breach an applicable legal obligation. This includes situations in which sanctions and embargoes are imposed under a United Nations resolution or the laws and regulations of (among others) the European Union, Australia, or the USA. Your insurance cover is likely to be affected if you become personally subject to such sanctions or embargoes, if you travel to a place that is subject to such sanctions or embargoes or if payment of a benefit to any party would breach such sanctions or embargoes.
Members can apply for Income Protection insurance cover if they:
- are aged between 16 and 64 years of age inclusive; and
- work on a permanent full-time basis, or part-time and working at least 15 hours per week on a regular basis. Casual employees are not eligible for Income Protection cover.
Cover is subject to the Insurer’s acceptance on such terms and conditions as required.
Applications must be in writing using the Application for Insurance Cover Form. The Insurer will consider your application and may request medical and other information about you before deciding whether or not to approve your application.
If your application is accepted, you will be notified of the acceptance and the date on which the insurance cover, or increase in insurance cover, starts.
See page 9 of the Insurance booklet for further information on Income Protection insurance and details on how to transfer existing cover to the First Super product.
This is a sponsored advertising promotion by First Super Pty Limited (ABN 42 053 498 472, AFSL 223988) as trustee of First Super (ABN 56 286 625 181).
This document contains general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and read the Product Disclosure Statement before making any investment decisions. To obtain a copy of the PDS or Target Market Determination please contact First Super on 1300 360 988 or visit our website www.firstsuper.com.au.
