Members who retain their benefits in ElectricSuper after leaving their employer are able to continue their insurance cover with the Scheme. This cover provides options for Death and Total and Permanent Disablement (TPD) cover, as well as Disability Income cover in the event of illness or injury.
To be eligible for a basic level of insurance cover without having to provide evidence of good health, members must:
- Be under age 60, and
- Have elected to retain their super benefits in ElectricSuper, and
- Have had insurance as at the time of leaving employment
Basic cover for Accumulation Scheme (Division 5) members will start automatically the day after leaving their ElectricSuper employer.
Division 2 and 4 members have 60 days from date of leaving their ElectricSuper employer to request (and start paying for) basic insurance cover.
Members who retain their benefits in Division 2 or 4 will need to cover the cost of premiums with incoming personal or employer contributions.
Death and TBD Cover
Death and TPD cover is offered on a unit basis with a fixed premium per unit of cover.
The basic Death and TPD cover (without a health assessment) is:
|Division as an ‘active’ member||Basic cover as a retained member|
|Division 2||3 units of cover|
|Division 3||No cover provided as the retained benefit provides insurance on Death and TPD|
|Division 4||3 units of cover|
|Division 5||3 units of cover if you had Level 2 cover. Otherwise, current level of cover converted to units (rounded down)|
Members may apply for cover which is higher than the basic level, however this additional cover would be subject to the insurer’s assessment of your health.
The level of cover offered per unit depends on your age next birthday, as follows:
|Age Next Birthday||Sum Insured Per Unit||Age Next Birthday||Sum Insured Per Unit|
Cost of Death and TPD Cover
The cost of Death and TPD cover is $1.45 per week per unit, deducted on a monthly basis from your ElectricSuper benefit. For example, a member who turns 30 next birthday and has 3 units of cover will have $300,000 in death and TPD cover at a cost of $4.35 per week.
Previous exclusions on your cover
Any exclusions or limitations placed on your insurance while you were an ‘active’ member of the Scheme will continue to apply to any cover above 3 units.
Disability Income Cover
Provided you are employed, ElectricSuper also offers members disability income insurance in the event of illness or injury (subject to conditions). Basic cover is based on your level of cover when you left the ElectricSuper employer which is then converted to a fixed $ amount of cover.
The basic Disability Income cover (without a health assessment) is:
|Division as an ‘active’ member||Basic cover|
|Division 2||DI cover at date of leaving ElectricSuper employer, rounded down to lower $500 per mth|
|Division 3||No cover|
|Division 4||No cover|
|Division 5||DI cover at date of leaving EISS employer, rounded down to lower $500 per mth|
On an ongoing basis, the maximum level of cover will always be two thirds of your new income level, so if your income reduces you should contact us so we can adjust your cover.
Cost of Disability Income Cover
The cost of Disability Income cover is based on your monthly insured benefit. Cover is offered in units of $500 per month, and the premium rate charged per unit is shown in the table below. The premiums are deducted on a monthly basis from your ElectricSuper benefit.
The weekly premium per $500 of monthly income benefit is as follows:
For example, a member who turns 30 next birthday, and has a disability income benefit of $4,000 per month (ie. has 8 units of cover), would be charged a weekly premium of $1.28 (male) or $2.64 (female).
|Age Next Birthday||Male||Female||Age Next Birthday||Male||Female|
Waiting and Benefit Period
You must be unable to work for a minimum of 90 consecutive days due to illness or injury before you can apply for Disability Income benefits. The maximum period you can receive Disability Income benefits for an illness or injury is two years. For specific information on whether you are eligible to apply, please contact ElectricSuper.
Variations to amount of cover
If your ElectricSuper benefit falls below a minimum level, we will contact you to advise that insurance cover will cease when your benefit is insufficient to cover the insurance premiums.
To change your level of insurance cover (or cancel it), simply complete and return the Accumulation Scheme (Retained) ‘Adjusting Your Insurance Cover’ form.
Please note that any request for an increase in cover will be subject to assessment of health evidence. You will not receive any extra cover until the assessment of your health evidence is complete and approved.
Members are able to nominate which of their dependants and/or their estate they wish to receive a benefit in the event of their death by completing a Binding Death Benefit Nomination Form and sending it to ElectricSuper. If you die and have not given the Board a completed Binding Death Benefit Nomination Form (or if your nomination expires or is defective) the Board will decide to which one or more of your spouse, children, relatives, other dependants and your estate your benefit will be paid
The insured benefits available from ElectricSuper are provided by external insurance arranged by the Board and there may be qualifications and limitations applied to the insured benefits which affect the level of insured benefits that might have otherwise been available to you. You will be notified about any conditions that are applied as a result of your health evidence questionnaire
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