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Insurance

Your greatest asset is your ability to earn an income but it is often taken for granted. Have you considered what would happen if you were unable to work due to illness or injury?

Insurance is an important part of your financial planning, as it provides you and your family with financial security should something unexpected happen to you. Having insurance means that if you die or become disabled or injured, money is available to pay debts and meet ongoing expenses.

Holding your insurance within your superannuation account can be both cost-effective and tax-effective:

  • Premiums are generally lower because you're accessing group rates instead of individual rates.
  • Premiums are generally lower because your super fund is able to claim a tax-deduction and may pass this benefit on to you.
  • Premiums come from your super account rather than your salary.
  • You can generally access default cover without the need to prove good health.

Automatic cover for permanent employees1

If you join IOOF Employer Super as part of an employer plan, you will receive a default level of insurance as described below without the need to prove good health and the premiums for this cover will be automatically deducted from your account.

Death and Total & permanent disablement (TPD)

The Death and TPD benefit is a cash lump sum equal to the total of the super account balance and the insurance benefit. The lump sum insurance benefit is calculated using the following formula:

P   x   Y   x   S

P = percentage factor (15%)
Y = complete years until age 65
S = salary

Insurance benefits are calculated using the salary and age at time of claim.

Example:

P = 15%
Age 30
Y = 35
Salary = $56,000
Death and TPD Insurance^ = $294,000

^ For standard Death & TPD cover, a fixed annual premium of $1.58 per $1,000 applies. Therefore, the annual premium for this is $1.58 x $294,000 divided by $1,000 which equals $464.52 or $38.71 (rounded up) per month.

Income Protection

Income Protection is available to permanent employees working 15 or more hours per week. Cover provides payment up to 75 per cent of your salary for two years and has a 60-day waiting period.

This benefit is payable:

  • after being off work due to injury or illness for 60 days
  • when temporarily unable to return to pre-disability employment.

A member whose annual salary is $56,000 would receive Income Protection cover of $3,500 per month (75 per cent of salary) for up to two years. The annual premium for this is $14.71 per $1,000 which equals $617.82 or $51.49 per month (plus applicable stamp duty).

No health assessment required

New employees automatically receive standard Income Replacement as well as formula based Death and TPD insurance without the need for health assessment*.

Members' insurance will increase in line with their salary over the course of their employment without the need for health assessment*.

* Up to $1,250,000 Death and TPD and $144,000 pa Income Replacement, members can be insured over these amounts but health assessment will be required.

1 Members who were transferred in from other Superannuation Plans might have other insurance arrangements and should check the correspondence they received on joining or contact our client services team.

Automatic cover for non-permanent employees1

If you join IOOF Employer Super as part of an employer plan, you will receive a default level of insurance as described below without the need to prove good health and the premiums for this cover will be automatically deducted from your account.

Automatic Death and TPD cover is a fixed premium with the benefit amount based on age. Income Protection cover is not available to non-permanent employees or permanent employees working less than 15 hours per week.

Please refer to our insurance rates

1 Members who were transferred in from other Superannuation Plans might have other insurance arrangements and should check the correspondence they received on joining or contact our client services team.

Additional staff benefit

Contributory members who are permanent employees can have the premiums for their default insurance cover offset by their employer as a staff benefit by making additional contributions to their super account.

A contributory member is a permanent employee working at least 15 hours per week who:

  • contributes at least four per cent after tax or five per cent before tax (salary sacrifice)* to the Plan; and
  • elects for their employer to contribute its Superannuation Guarantee to the Plan; and
  • does not transfer any portion of their existing balance inside the Plan to another super fund.

*Members are able to mix and match their contributions with a combination of before and after tax monies that equals at least 5 per cent. Eg: 2 per cent after tax and 3 per cent before tax (ie salary sacrifice) for a salary of $39,000.

Members of the Plan may split their contributions annually with a spouse and maintain insurance cover paid for by their employer provided that the receiving account is a spouse account also inside the Plan.

Members accessing transition to retirement income streams inside the Plan continue to be eligible to have their insurance premiums paid for them while they remain in the employer sponsors' employment and provided they continue to meet the above three conditions with their accumulation super balances.

Find out more in the Additional employer contributions to super staff benefit guidelines

Top up insurance

New staff, within their first 60 days of employment, are able to apply for additional Death and TPD cover purchased for a $2 or $4 per week premium. Please refer to the Welcome Guide available from our website or client services on 1800 787 372.

Existing members can 'top up' their Death or Death and TPD insurance by adding an additional amount of insurance (eg $200,000 where the premium increases with the member's age) or an additional premium amount (eg $5 per week where the insurance decreases with the member's age). Health assessment is required and the premium for the top up insurance is debited from the member's account.

Income Protection options

Members can select from two other Income Protection benefit options – benefit to age 65 or a five year benefit. Members can also select a 30, 60 or 90 day waiting period for any of the three Income Protection options (two years, five years and to age 65).

Only one type of Income Protection insurance can be held at any one time.

Health assessment is required and the premium for any non-standard Income Protection insurance (two year benefit with a 60 day waiting period) is debited from the member's account.

Find out more in our information flyers: Understanding income protection and Making an income protection claim.

Insurance rates

Please refer to our insurance rates. To find out if you are eligible to apply for insurance, please refer to our Occupations Ratings Guide.

What happens when you leave your employer

One of the best features of the Bendigo and Adelaide Bank Staff Super Plan is that you keep your insurance even if you change jobs or leave the workforce. Your income protection and Death and TPD insurance cover remains in place provided the balance of your super account is more than $2,000. The premiums will be deducted from your super account.

More Information?

For further insurance information please contact our office on 1800 787 372.