Insurance in your super
The information in this document forms part of the MasterSuper Personal Plan
Product Disclosure Statement dated June 2012.
AustralianSuper recognises the importance of insurance cover. That’s why we provide members with affordable Death, TPD and
Income Protection insurance. Cover is provided (subject to eligibility), 24 hours a day, seven days a week – not just when you’re at work.
About insurance under the MasterSuper Personal Plan
Insurer
Insurance is provided by TAL Life Limited (the Insurer), ABN 70 050 109 450, AFSL 237848.
AustralianSuper
commencement date
The commencement date is 1 July 2010 for members who transferred from the previous MasterSuper Personal Plan or
MasterSuper Employee Plan. For new employees, the commencement date is the date you commenced employment
with an Employer sponsor.
For a copy of the insurance policy please call 1300 309 466.
What we cover?
The MasterSuper Personal Plan provides three types of cover.
Death insurance
If you die, Death cover provides a lump sum payout to your dependants (for example, your children or partner) or
your legal personal representative (executor of your estate). Death cover is designed to provide your dependants with
financial support. Death cover is available up to age 70. For further information, see page 2.
Total & Permanent
Disablement (TPD)
insurance
TPD cover provides a lump sum payout to you if you become totally and permanently disabled. TPD cover is designed
to replace your future income and provide you and your dependants with financial support. TPD cover is available
up to age 65. For further information, see page 2.
Income Protection
insurance
Income Protection insurance helps protect your income if you are unable to work through illness, injury or accident.
It provides regular monthly payments for up to two years or to age 65 to help you meet your living expenses. For further
information, see page 7.
A terminal illness benefit will pay your Death or TPD cover amount. For more information, see page 7.
Maximum cover available
The maximum cover available, including any additional cover is show in the table below. You’ll be advised if you reach these levels.
Type of cover
Maximum amount of cover that is available
Death
Unlimited
TPD
$3 million
Income protection
$50,000 per month or 84% of salary, (inclusive of 9% employer Superannuation Guarantee contributions, if applicable)
whichever is lower, for the two year benefit period.
$30,000 per month or 84% of salary, (inclusive of 9% employer Superannuation Guarantee contributions, if applicable)
whichever is lower, for benefit payments to age 65.
AustralianSuper1
Do you work in an office job that doesn’t involve manual labour?
You could pay less for your cover or get more cover if your work is classified as White collar or Light blue – this classification is
known as your work rating.
There are three work ratings for the MasterSuper Personal Plan:
White collar
This means you work in an office and don’t do any manual labour. You can work in sales provided you aren’t involved in making
deliveries.
Light blue
If your occupation is light blue, you could be a skilled technician or work in non-hazardous industries involving light manual work,
such as jewellers, computer technicians, coffee shops etc. You could also be a supervisor of blue collar workers, if no more than
25% of your time is spent performing light manual work. You could also be a qualified tradesperson.
Heavy blue
If your occupation is Heavy blue, you are likely to be a qualified tradesperson (such as a carpenter, plumber, plasterer or
mechanic) in a non-hazardous industry, mostly performing manual duties. You may also be in a high risk occupation (such as an
interstate bus driver, warehouse worker, labourer, bricklayer, house removalist) and could be involved in heavy manual work in a
non-hazardous industry.
When you apply for cover, you need to complete the work rating questions in the Application for insurance cover form provided
with the Product Disclosure Statement. If you don’t complete the questions, the Insurer will apply the default work rating of Heavy
blue and you may pay more for your cover than you need to.
Death and TPD insurance
As a member of MasterSuper Personal Plan, you can apply for Death and TPD cover.
Cover is available for:
Death
From 15 to 70 years of age.
TPD
From 15 to 65 years of age.
Your cover will start once your application has been accepted by the Insurer and you have at least $1,000 in your account.
Did you automatically transfer into MasterSuper Personal?
If you are transferred to the MasterSuper Personal Plan, the Death and TPD cover you had under your MasterSuper Employee Plan
will be automatically transferred without the need for you to provide health information, provided your account balance is greater
than $1,000 and your cover hasn’t ended.
You can elect to have your Income Protection cover transferred. If you elect to transfer, you will need to complete the relevant
section of the Application for insurance cover form provided with the Product Disclosure Statement. If this form is received by
AustralianSuper within 60 days of the date this form was sent to you, you don’t need to complete the Full personal statement.
Your existing work rating will continue to apply.
Any special conditions that applied to your cover under the MasterSuper Employee Plan (such as exclusions) will still apply.
Terms and conditions apply to both automatically transferred Death and TPD cover, and Income Protection cover that you have
elected to transfer.
Choosing units of cover or fixed cover
When applying for Death and/or TPD cover, you can choose between units of cover or fixed cover, but you cannot have a
combination of both.
1. Units of cover
With units of cover, your amount of cover decreases as your age increases, but the amount you pay remains the same (as long as
you don’t change your work rating).
Please refer to page 4.
2. Fixed cover
With fixed cover your cover stays the same but as you get older, the costs you pay will increase each year. Fixed cover is available
in multiples of $1,000.
You can switch between units and fixed cover on joining or at any time. If you are increasing your cover or switching between
units of cover and fixed cover the type of cover you choose will apply to all your Death and/or TPD cover.
If you wish to switch cover, your units of cover will be rounded up to the nearest $1,000 or your fixed cover will be rounded up to
the nearest unit.
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Applying for cover or choosing unit of cover or fixed cover, or increasing cover
At any time, you can apply to increase your Death or TPD cover. See page 1.
To apply for cover, or choose between units of cover or fixed cover, or increase cover, complete the Application for insurance cover
form provided with the Product Disclosure Statement or login to your account at www.australiansuper.com/corporate and
download a copy.
Your application for any of those will be assessed by the Insurer and you will need to provide information about your health. You
will need to complete the Personal health statement section of the Application for insurance cover form. If you’re applying for
more than $500,000 in total for either Death or TPD cover you will also need to complete the Full personal statement available by
logging into your account at www.australiansuper.com/corporate
Life Event cover
If your personal or financial situation changes, then you may need to change your insurance. Marriage, children or buying a home
are all reasons to review your insurance cover. With AustralianSuper’s Life Event cover, you can apply to increase your Death or
TPD cover up to certain limits without having to provide medical information and have your application assessed by the Insurer so
long as you are able to answer the Insurer’s eligibility questions to their satisfaction.
If you already have insurance with the MasterSuper Personal Plan, you can apply to increase your Death or TPD cover once per
year within 60 days of one of the following life events occurring:
›› you get married
›› you get divorced
›› you commence or end a defacto relationship
›› you have a child or adopt a child
›› you take out a mortgage to purchase or build your home in Australia.
Each increase in cover:
›› will have the same exclusions and other special conditions as apply to the rest of your cover,
›› will be limited to a maximum of $500,000, and
›› cannot cause your total TPD cover to exceed the maximum cover limit (see page 1).
You will need to complete an Application for insurance cover form for the amount of cover that exceeds this limit. Once your
application for cover has been accepted by the Insurer cover will commence on the date all the documentation required to
evidence the life event is received. Cover will be Limited cover until your new Life Event cover has been in force for two years and
providing you are At work (see page 11 for a definition of At work) at the end of that time.
If you apply to increase your cover following a life event, interim accident cover will apply to the extra cover, see below. To apply
for increased cover due a life event, download the Application for Life Event insurance cover form by logging into your account at
www.australiansuper.com/corporate
Interim accident cover
When you apply to increase your insurance, you may receive interim accident cover for an interim accident cover period – this is
the time while your application for cover is being considered by the Insurer.
If you have an accident during the interim accident cover period, an interim accident cover benefit will be paid if you die, or
become totally and permanently disabled. The interim accident benefit is payable once, and if paid, your application for insurance
will be cancelled.
The interim accident cover period will start on the date that AustralianSuper receives your insurance application and will end when:
›› your application is withdrawn, accepted or rejected
›› the policy is terminated
›› you cease to be eligible for cover
›› 120 days have passed since the Insurer received your fully completed personal statement, whichever is earlier.
The maximum interim accident cover is:
›› Death and TPD – the lower of $1 million and total amount applied for,
›› Income Protection – the lower of $15,000 per month and total amount applied for,
less the amount of any insured cover already in force.
Accident means an unforeseen violent, external and visible event that occurs accidentally.
Reducing or cancelling your cover
You can reduce or cancel your Death or TPD cover at any time. If you cancel your cover and decide to apply for cover in the
future, you will need to provide health information as part of your application, and your application will be assessed by the Insurer.
To reduce your cover, complete an Application for insurance cover form provided with the Product Disclosure Statement or login to
your account at www.australiansuper.com/corporate and download a copy.
To cancel your cover, complete the Cancel your insurance form available from www.australiansuper.com/corporate
AustralianSuper3
Cost of Death and TPD cover
The cost of your Death and TPD cover will depend on whether you have units of cover or fixed cover. Costs are deducted from
your super account each month.
Cost per unit of cover
With units of cover, you pay a set price for each unit of cover you have depending on your work rating. The following table shows
the cost per week for a unit of cover.
Weekly cost
per unit of cover ($)
Work rating
Death
TPD
White collar
0.70
0.70
Light blue
0.95
1.55
Heavy blue
1.30
3.40
Example:
Michael has a Light blue work rating with three units of Death cover and three units of TPD cover.
So the cost for his cover is:
Death cover is three units x $0.95
= $2.85 per week
TPD cover is three units x $1.55
= $4.65 per week
Michael’s total weekly cost is $7.50
Death and TPD cover – cover provided by a unit
The table below shows the amount of cover provided by one unit of cover based on your age.
Age next
birthday
Amount of cover
per unit ($)
16–35
100,050
36–40
77,370
41–45
58,700
46–50
44,020
51–55
29,350
56–60
16,010
61–65
7,340
66*
6,500
67*
5,760
68*
5,090
69*
4,510
70*
3,990
* TPD cover not available after age 65.
Cost of fixed cover
With fixed cover, you select the amount of cover you want and multiply the amount by the cost.
The formula to calculate the cost of Death or TPD cover is:
(Your cover amount ÷ 1,000) × (the relevant rate)
= annual cost
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Annual costs of fixed Death and TPD per $1,000 of cover
Age next
birthday
Death cover ($)
White
collar
Light
blue
TPD cover ($)
Heavy
blue
White
collar
Light
blue
Heavy
blue
Age next
birthday
Death cover ($)
White
collar
Light
blue
TPD cover ($)
Heavy
blue
White
collar
Light
blue
Heavy
blue
16
0.50
0.65
0.84
0.09
0.17
0.32
44
0.59
0.77
1.00
0.88
1.55
3.00
17
0.50
0.65
0.84
0.09
0.17
0.32
45
0.64
0.82
1.09
1.00
1.74
3.41
18
0.50
0.65
0.84
0.09
0.17
0.32
46
0.67
0.88
1.14
1.12
1.97
3.82
19
0.50
0.65
0.84
0.09
0.17
0.32
47
0.73
0.95
1.25
1.27
2.23
4.33
20
0.50
0.65
0.84
0.09
0.17
0.32
48
0.79
1.02
1.34
1.45
2.54
4.94
21
0.47
0.61
0.80
0.10
0.18
0.35
49
0.84
1.10
1.43
1.65
2.89
5.60
22
0.44
0.58
0.76
0.11
0.20
0.38
50
0.91
1.18
1.55
1.88
3.30
6.40
23
0.41
0.54
0.70
0.12
0.22
0.41
51
0.99
1.29
1.69
2.16
3.78
7.33
24
0.39
0.51
0.67
0.12
0.22
0.41
52
1.08
1.41
1.84
2.44
4.26
8.28
25
0.37
0.48
0.62
0.13
0.23
0.45
53
1.16
1.51
1.98
2.75
4.83
9.37
26
0.34
0.44
0.58
0.13
0.23
0.45
54
1.26
1.63
2.14
3.10
5.43
10.54
27
0.32
0.42
0.54
0.14
0.24
0.48
55
1.36
1.77
2.31
3.43
6.01
11.66
28
0.31
0.40
0.52
0.15
0.26
0.51
56
1.46
1.90
2.48
3.77
6.60
12.81
29
0.30
0.39
0.52
0.16
0.28
0.54
57
1.58
2.06
2.69
4.13
7.23
14.05
30
0.30
0.39
0.52
0.17
0.30
0.57
58
1.71
2.23
2.91
4.55
7.97
15.48
31
0.30
0.38
0.51
0.19
0.33
0.64
59
1.86
2.41
3.16
5.02
8.79
17.07
32
0.30
0.39
0.52
0.21
0.37
0.70
60
2.01
2.62
3.43
5.54
9.69
18.82
33
0.31
0.40
0.52
0.22
0.39
0.77
61
2.19
2.85
3.73
6.12
10.71
20.80
34
0.32
0.41
0.54
0.25
0.44
0.86
62
2.38
3.09
4.05
6.77
11.84
23.00
35
0.33
0.43
0.56
0.28
0.50
0.96
63
2.58
3.35
4.39
7.51
13.14
25.51
36
0.34
0.44
0.58
0.31
0.54
1.05
64
2.80
3.64
4.76
8.33
14.58
28.33
37
0.36
0.46
0.61
0.35
0.61
1.18
65
3.05
3.96
5.18
9.25
16.18
31.45
38
0.37
0.49
0.64
0.39
0.69
1.34
66
3.45
4.47
4.51
n/a
n/a
n/a
39
0.40
0.52
0.67
0.44
0.77
1.50
67
3.89
5.05
5.08
n/a
n/a
n/a
40
0.42
0.55
0.72
0.51
0.89
1.72
68
4.40
5.71
5.75
n/a
n/a
n/a
41
0.46
0.60
0.78
0.58
1.02
1.98
69
4.97
6.45
6.50
n/a
n/a
n/a
42
0.51
0.66
0.86
0.67
1.18
2.30
70
5.61
7.29
7.34
n/a
n/a
n/a
43
0.54
0.70
0.93
0.77
1.35
2.61
Example:
Peter will be 28 at his next birthday. He wants $150,000 Death cover and $150,000 TPD cover.
Peter’s job involves manual labour, so his work rating is Heavy blue.
Peter’s annual cost for Death cover is:
($150,000 his cover amount ÷ 1,000) × (the cost of $0.52)
= $78.00 annual cost
Peter’s annual cost for TPD cover is:
($150,000 his cover amount ÷ 1,000) × (the cost of $0.51)
= $76.50 annual cost
So Peter’s total annual cost for his Death and TPD cover is $154.50
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What’s covered by Death insurance?
Death insurance provides a lump sum to your beneficiaries or legal personal representative if you die. A death benefit may also be
pre-paid if you are terminally ill. See page 7.
What’s covered by TPD insurance?
TPD insurance provides a lump sum to you if you become totally and permanently disabled.
Our Insurer will consider a claim that you’re totally and permanently disabled if, while you are insured, something happens that
results in one of the following situations.
Loss of limbs and sight
Before you turn 65, you have suffered:
›› the loss of use of two limbs,
›› the complete and permanent loss of sight in both eyes, or
›› the loss of use of one limb and the complete and permanent loss of sight of one eye.
By limb, the Insurer means at least an entire hand or foot.
If you’re employed, or have been unemployed for less than 12 months, prior to the date you were disabled
You’re unable to work
Since the date of disablement, as a result of illness or injury, you have been continuously absent from employment or unable to
accept employment, for at least three consecutive months starting before you turn age 65. And, after the Insurer reviews medical
and other information, they believe you’re unlikely ever to be able to engage in any occupation.
Occupation means:
Any occupation based on the skills and knowledge you have acquired through previous education, training and experience. If you
are a professional or manager, your own occupation is based on your general area of expertise.
Professional means a person who:
›› has an accredited higher education qualification, or belongs or is eligible to belong to a professional body,
›› earns a salary of $80,000 or more each year, and
›› works in an office environment and in a sedentary capacity no less than 80% of the time (excluding travel time from one office
to another office).
Manager means a person who:
›› is part of the management of an employer,
›› earns a salary of $80,000 or more each year, and
›› works in an office environment and in a sedentary capacity no less than 80% of the time (excluding travel time from one office
to another office).
You suffer from certain medical conditions
If you suffer from one of a number of medical conditions, you may be eligible for a benefit if your condition is so severe that you
are no longer able to work. You will be considered totally and permanently disabled if, as a result of illness or injury, you have been
continuously absent from work as a result of suffering from:
›› cardiomyopathy, primary pulmonary hypertension, major head trauma, motor neurone disease, multiple sclerosis, muscular
dystrophy, paraplegia, quadriplegia, hemiplegia, diplegia, tetraplegia, dementia and Alzheimer’s disease, Parkinson’s disease,
blindness, loss of speech, loss of hearing, chronic lung disease or severe rheumatoid arthritis, see page 13, and
›› in the opinion of the Insurer, after considering medical and other information, you are unlikely ever to be able to engage in any regular
paid work (for which you are reasonably suited by education, training or experience) and that you are likely to be disabled for life.
Eligibility for a benefit payment under this definition may allow for a quicker assessment and payment of a TPD benefit.
If you do not suffer from one of the conditions listed above, you may still be able to claim under one of the other TPD definitions,
but a six month waiting period may apply.
You’re no longer able to do simple work tasks
You will be considered totally and permanently disabled if, prior to the date you become disabled, you haven’t worked for
12 months or more, and you’ve become so disabled by injury or illness that the Insurer is satisfied that you’ll never be able to
perform at least two of the five categories of everyday working activities listed below, without someone else’s help, despite the
use of appropriate aids:
1. Mobility – you cannot do one of the following:
–– walk more than 200m on a level surface without stopping due to breathlessness or severe discomfort
–– bend, kneel or squat to pick something up from the floor and straighten up again, nor can you get in and out of a standard
sedan car.
2. Communicating – you cannot do one of the following:
–– speak in your first language so that you are understood in a quiet room, nor can you hear (with or without a hearing aid or
other aid) an instruction given in a normal voice in your first language in a quiet room
–– understand a simple message in your first language, and relay that message to another person.
3. Vision – you cannot, with or without glasses or contact lenses, read ordinary newsprint and pass the standard eyesight test for
a car licence.
4. Lifting – you cannot lift, carry or move objects weighing up to 5kg using your hands.
5. Manual dexterity – you cannot use your hands or fingers to manipulate small objects with precision (such as picking up a coin
or fastening shoelaces or buttons, using cutlery, or using a pen or keyboard to write a short note).
Permanent inability must have lasted for a continuous period of six months or more, and it is unlikely you will ever return to gainful
employment.
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If you’ve been performing full-time unpaid domestic duties
If you were working at home doing full-time, unpaid domestic duties immediately before you became disabled, then you are
considered totally and permanently disabled if:
›› you’ve been unable to perform your unpaid domestic duties for at least three consecutive months starting before you turn
age 65, and after considering medical and/or other evidence, the Insurer believes you’re unlikely to be able to engage in your
unpaid domestic duties again or any other work for which you are reasonably suited by education, training or experience, and
›› you’re so incapacitated that you can’t leave your home without someone else’s help.
Terminal illness
Your Death cover may be prepaid if you are terminally ill.
Terminal medical illness applies if the following circumstances exist:
›› two registered medical practitioners (with at least one being a specialist practicing in the area related to the illness or injury)
have certified that you suffer an illness or have incurred an injury that is likely to result in your death within a 12 month period, and
›› for each of the certificates, the certification period must not have ended (the certification period is 12 months after the date of
certification).
If you have Death cover and become Terminally ill the Insurer will pay you the amount of Death cover that applies, up to a
maximum of $3,000,000;
If the amount the Insurer pays you as a result of Terminal Illness is the whole amount of your Death cover, your cover then ceases;
If the amount the Insurer pays you as a result of Terminal illness is less than your total Death cover amount, the balance of your
cover will remain in force, subject to the terms and conditions of the policy.
Income Protection insurance
Income Protection insurance helps protect your income if you are disabled and unable to work through illness, injury or accident.
As a member of the MasterSuper Personal Plan, you can apply for Income Protection cover if:
›› you are aged at least 15 and under age 65
›› work more than 10 hours per week
›› you are employed on a permanent full-time or permanent part-time basis
›› you are a fixed term contractor for at least 12 months.
You can choose your level of cover as well as your benefit period – you can choose a benefit period of either two years, or to age 65.
Choose your level of cover
You can choose your level of cover based on a percentage of your salary. The options are:
›› 50% of salary*
›› 75% of salary*
›› 75% of salary* + 9% super contributions
* Salary is your current annual before-tax salary, excluding employer super contributions. See page 12.
Example:
Kate earns $50,000 and has chosen a two year benefit period with a 75% level of cover.
So her annual cover is equal to $50,000 × 75%
= $37,500
Her monthly Income Protection payments are equal to $37,500 ÷ 12
= $3,125.
Where you elect 75% of Salary you can cover your super contributions as well
You can choose to add an extra 9% to your cover, so that your super contributions aren’t impacted if you are off work and entitled
to an Income Protection benefit. So your super continues to grow while you are off work.
As an example, if you choose 75% cover with a two year benefit period, you can opt for the extra 9% super contribution.
This would mean that a benefit of 75% of your salary* is paid to you and a benefit of 9% of your salary is paid into your
MasterSuper Personal Plan account for up to two years.
* Salary is your current annual before-tax salary, excluding employer super contributions. See page 12.
Choose your benefit period
A benefit period is the length of time that monthly Income Protection payments may be paid. The default benefit period is two
years but you can choose for payments to be made up to age 65.
What is a waiting period?
The waiting period is the number of days that you must wait before you are eligible to make an Income Protection claim.
The waiting period for Income Protection cover is 90 days.
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Applying for and increasing your cover
At any time, you can apply for Income Protection cover or increase cover to the maximum amount. The maximum cover for the
two year benefit period is $50,000 per month or 84% of salary, whichever is lower. If you choose the to age 65 benefit period, the
maximum cover is $30,000 per month or 84% of salary, whichever is lower.
Your application will be assessed by the Insurer and you will need to provide information about your health.
To apply, complete the Application for insurance cover form provided with the Product Disclosure Statement or login to your
account at www.australiansuper.com/corporate and download a copy. You will also need to complete the Full personal
statement form available at www.australiansuper.com/corporate
Life Event cover
If your personal or financial situation changes, then you may need to change your insurance. Marriage, children or buying a home
are all reasons to review your insurance cover. With AustralianSuper’s Life Event cover, you can apply to increase your Income
Protection cover up to certain limits without having to provide medical information and have your application assessed by the
Insurer, so long as you are able to answer the Insurer’s eligibility questions to their satisfaction.
If you already have insurance with your AustralianSuper MasterSuper Personal Plan, you can apply to increase your Income
Protection cover once per year within 60 days of one of the following life events occurring:
›› you get married
›› you get divorced
›› you commence or end a defacto relationship
›› you have a child or adopt a child
›› you take out a mortgage to purchase or build your home in Australia.
Each increase in cover:
›› will have the same exclusions and other special conditions as apply to the rest of your cover, and
›› will be limited to 84% of your salary, or the maximum monthly benefit for the benefit period you have chosen, whichever is lower.
The benefit period for Life Event cover is two years unless you had a to age 65 benefit period immediately before your application
for Life Event cover, in which case a to age 65 benefit period will apply to your total cover.
Once your application for cover has been accepted by the Insurer cover will commence on the date all the documentation
required to evidence the life event is received. Cover will be Limited cover until your new Life Event cover has been in force for
two years and providing you are in active employment at the end of that time.
If you apply to increase your cover following a life event, interim accident cover will apply to the extra cover, see page 3.
To apply for increased cover due a life event, download the Application for Life Event insurance cover form by logging into your
account at www.australiansuper.com/corporate
Reducing or cancelling your cover
You can reduce or cancel your Income Protection cover at any time. If you cancel your cover and decide to apply for cover in the
future, you will need to provide health information as part of your application, and your application will be assessed by the Insurer.
To reduce your cover, complete the Application for insurance cover form provided with the Product Disclosure Statement or login
to your account at www.australiansuper.com/corporate and download a copy.
To cancel your cover, complete the Cancel your cover form available from www.australiansuper.com/corporate
Cost of Income Protection cover
Income Protection cover is charged per $1,000 of Income Protection cover based on your age next birthday, waiting period,
benefit period and your work rating. Costs are deducted from your super account each month.
Costs are calculated as:
(Annual Income Protection Cover ÷ 1,000) × rate
Example:
Max is aged 39 next birthday and has an annual salary of $45,000. His work rating is considered Light blue.
He has chosen a 75% level of Income Protection cover and for payments to be made up to two years.
So his level of cover is equal to $45,000 × 75%
= $33,750 annual Income Protection cover
His annual cost would be:
$33,750 × $2.02 (his cost rate) ÷ 1,000 = $68.18
8
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Annual costs for Income Protection per $1,000 of cover
Two year benefit period, 90 day waiting period
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
16
0.77
1.44
2.30
33
0.74
1.39
2.23
50
3.37
6.32
10.10
17
0.78
1.46
2.34
34
0.78
1.47
2.35
51
3.77
7.07
11.31
18
0.82
1.53
2.45
35
0.82
1.53
2.45
52
4.22
7.91
12.66
19
0.83
1.56
2.49
36
0.87
1.64
2.62
53
4.73
8.88
14.20
20
0.83
1.56
2.49
37
0.93
1.75
2.80
54
5.31
9.96
15.93
21
0.84
1.58
2.53
38
0.99
1.86
2.98
55
5.97
11.19
17.90
22
0.79
1.49
2.38
39
1.08
2.02
3.23
56
6.69
12.54
20.06
23
0.76
1.43
2.29
40
1.18
2.21
3.54
57
7.47
14.00
22.41
24
0.73
1.37
2.19
41
1.29
2.41
3.86
58
8.36
15.68
25.09
25
0.70
1.30
2.09
42
1.42
2.66
4.25
59
9.33
17.50
28.00
26
0.66
1.25
1.99
43
1.56
2.93
4.68
60
10.42
19.53
31.25
27
0.66
1.24
1.99
44
1.73
3.24
5.18
61
11.63
21.80
34.88
28
0.67
1.25
2.01
45
1.93
3.61
5.78
62
12.94
24.26
38.82
29
0.68
1.27
2.03
46
2.13
4.00
6.40
63
14.40
27.01
43.21
30
0.68
1.28
2.05
47
2.38
4.46
7.13
64
12.46
23.36
37.38
31
0.70
1.31
2.09
48
2.68
5.03
8.05
65
4.50
8.45
13.51
32
0.71
1.34
2.14
49
3.01
5.64
9.02
Annual costs for Income Protection per $1,000 of cover
Cover to age 65, 90 day waiting period
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
Age next
birthday
White
collar ($)
Light
blue ($)
Heavy
blue ($)
16
1.32
2.05
3.08
33
1.60
2.48
3.72
50
7.04
10.93
16.40
17
1.35
2.09
3.14
34
1.69
2.63
3.94
51
7.67
11.92
17.87
18
1.40
2.18
3.27
35
1.81
2.81
4.21
52
8.50
13.21
19.81
19
1.43
2.23
3.34
36
1.95
3.03
4.54
53
9.39
14.59
21.89
20
1.48
2.29
3.44
37
2.08
3.23
4.84
54
10.32
16.04
24.06
21
1.51
2.34
3.51
38
2.27
3.52
5.29
55
11.30
17.56
26.34
22
1.45
2.26
3.39
39
2.46
3.82
5.73
56
12.31
19.12
28.69
23
1.40
2.18
3.26
40
2.70
4.20
6.29
57
13.30
20.67
31.00
24
1.37
2.13
3.20
41
2.98
4.62
6.94
58
14.28
22.19
33.28
25
1.33
2.06
3.10
42
3.29
5.11
7.66
59
15.16
23.56
35.33
26
1.31
2.04
3.06
43
3.65
5.68
8.51
60
15.89
24.70
37.04
27
1.32
2.05
3.08
44
4.06
6.30
9.45
61
16.40
25.48
38.22
28
1.34
2.08
3.12
45
4.52
7.03
10.54
62
16.56
25.73
38.60
29
1.37
2.13
3.19
46
5.04
7.83
11.74
63
16.05
24.94
37.41
30
1.41
2.19
3.28
47
5.61
8.72
13.08
64
13.14
20.42
30.63
31
1.46
2.27
3.41
48
6.26
9.73
14.60
65
4.75
7.38
11.07
32
1.53
2.38
3.57
49
6.94
10.78
16.16
AustralianSuper9
Claiming an Income Protection benefit
An Income Protection benefit is payable if you are totally or partially disabled after the waiting period has ended. You must be
totally disabled for at least 14 consecutive days followed by a period of either being totally or partially disabled extending up to a
period of 90 days. The waiting period commences on the day a medical practitioner examines you and certifies that you are totally
disabled.
A Partial Disability benefit is a proportion of the Total Disability benefit, based on your reduced income. For example, if you are
earning 80% of your previous salary, your benefit may be 20% of your Total Disability benefit.
Total Disability and Partial Disability benefits are payable monthly, in arrears, from the end of the waiting period until one of the
following happens:
›› you reach the end of your benefit payment period
›› you are no longer totally disabled or partially disabled
›› you reach age 65
›› you die.
If you die while receiving a Total or Partial Disability benefit the Insurer will pay an additional sum equal to three times your
monthly benefit.
If your benefit period is to age 65 and you receive a Total or Partial Disability benefit for a continuous period of 12 months your
monthly benefit will increase by the lower of CPI or 7.5% on each claim anniversary date. At the end of the period of your claim
your monthly benefit will revert to the level that applied before the benefit escalation began.
If you claim a benefit while outside Australia the Insurer may not pay your benefit for a period longer than six months unless you
return to Australia at your own expense.
If you are totally or partially disabled and a benefit is paid, you do not pay Income Protection costs from the end of the waiting
period while Income Protection benefit payments are being made. See below for definitions of Total disability and Partial disability.
Total Disability
You are considered totally disabled if, because of illness or injury, you:
›› have been working at least ten hours per week immediately prior to the date of disablement,
›› are unable to perform at least one important income producing duty of your own occupation,
›› are under the regular care of, and in the Insurer’s opinion following the advice of a medical practitioner, and
›› are not working in any occupation, whether or not for reward.
Partial Disability
You are considered partially disabled if because of illness or injury, you:
›› have been working at least ten hours per week immediately prior to the date of disablement,
›› have been totally disabled (refer above definition) for at least 14 consecutive days,
›› are unable to work in your own occupation at full capacity immediately after becoming totally disabled because of the illness or
injury that caused the total disability,
›› are working in your own occupation in a reduced capacity, or working in another occupation,
›› earn a monthly income that is less than your pre-disability income, and
›› are under the regular care of, and in the Insurer’s opinion following the advice of a medical practitioner.
Recurring disability
If you become totally or partially disabled again from the same or a related sickness or injury within six months of returning to
work, the disability will be treated as a continuation of the original claim and a new waiting period will not apply. After six months
back at work, a new waiting period will apply. The subsequent period(s) of disability will be added to the initial period to determine
when the maximum benefit period of two years is reached (if applicable).
Income from other sources
Your monthly Income Protection benefit will be reduced by other disability income (other than income from your AustralianSuper
MasterSuper Personal Income Protection Plan or Return to Employment Income) whether actually received or not, and including:
›› any amount payable under any workers compensation, statutory compensation, pension, Centrelink, or similar schemes
›› benefits payable under other income protection insurance policies
›› any benefit paid under state or federal legislation such as the Department of Veterans’ Affairs
›› other income payments.
Annual leave, sick leave and long service leave entitlements, and investment income will not be taken into account.
Rehabilitation expenses
The Insurer will meet the cost of rehabilitation expenses for you if:
›› rehabilitation expenses are approved by the Insurer, in writing, before they are incurred, and
›› the expenses incurred will directly assist you to return to work in a gainful occupation or undertake a vocational retraining
program because of your disability.
Generally, these expenses will include the cost of a rehabilitation program (other than a rehabilitation program provided for under
health insurance legislation) which a medical practitioner certifies is necessary for your rehabilitation. Rehabilitation expenses will
be paid directly to the service providers.
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Taxation
The benefits paid under Income Protection insurance are paid as taxable income and attract Pay As You Go (PAYG) Withholding
tax, the same as salary and wages. PAYG Withholding tax will be deducted from the benefit before it is paid, and forwarded to the
Australian Taxation Office.
If you receive Income Protection insurance benefits you will be asked to provide your Tax File Number (TFN) to AustralianSuper.
If you do not provide your TFN, AustralianSuper will be required to deduct tax from your benefit payments at the maximum
PAYG tax rate applicable at the time, rather than at your marginal tax rate.
If a portion of the Income Protection benefit is paid as super, it will be paid to your AustralianSuper Personal Plan account and
taxed as if it were an employer contribution.
These statements in relation to taxation are based on interpretation of Australian tax law at the date of this publication, which
may change at any time. For a full explanation and advice on your individual circumstances you should consult a professional
taxation adviser.
Important Information
Limited cover
Limited cover means that you won’t be covered for any pre-existing conditions.
But you will be covered for claims arising from an illness which first became apparent, or an injury which first occurred, on or after
the date that your cover started, was reinstated or was increased.
At work
‘At work’ means you are:
›› actively at work and performing all the essential duties of your normal occupation without restriction, or
›› are on approved leave other than leave related to injury or illness, and
›› are not receiving or claiming and/or entitled to claim income support benefits from any source including Worker’s
Compensation benefits, statutory transport accident benefits and disability income benefits.
Exclusions
A Death, TPD, Terminal Illness or Interim Accident benefit will not be paid if the reason for the claim is directly or indirectly the
result of:
›› service in the armed forces of any country or organisation other than the Australian Armed Forces
›› suicide within the first 13 months after the date of cover starting, increasing or being reinstated (except if the cover was
automatic under the policy)
›› TPD as a result of intentional self harm or injury
›› an event for which there is an individual exclusion on cover.
›› If you increase your Death or TPD cover as a result of a Life event, for the first six months after the date the cover is increased,
any Death or TPD payment, resulting from illness of injury, will not include the increased cover amount.
An Income Protection benefit or Interim Accident benefit will not be payable if the reason for the claim is directly or indirectly the
result of:
›› intentional self harm or injury
›› normal pregnancy and childbirth
›› war or acts of war, whether declared or not
›› service in the armed forces of any country or organisation
›› any event for which there is an individual exclusion on cover
›› an illness or injury sustained at the date of disablement while you were not working 10 hours per week.
When does your cover stop?
Insurance cover in the MasterSuper Personal Plan will stop as a result of the following (whichever is earlier):
›› the policy is terminated or cancelled
›› your AustralianSuper membership ends
›› the end of the week in which you do not have enough money in your account to pay the insurance premiums
›› you reach age 65 (for TPD and Income Protection cover) or age 70 (for Death cover)
›› an insured Death, TPD or Terminal illness benefit becomes payable from the Insurer. If an insured TPD benefit is paid to
you, and the amount of the payment is less than your Death cover, then your TPD cover will end, and your Death cover will
continue, but will be reduced by the amount of your TPD payment
›› we receive your written request to cancel your insurance cover
›› Income Protection stops when you join the armed forces of any country
›› Income Protection stops when you have been on employer approved leave for more than 12 months.
If for any reason no insured benefit is payable, then any benefit paid to you will consist solely of your superannuation account
balance.
AustralianSuper11
Employer approved leave
Insurance cover will continue unchanged while you are on parental leave, maternity leave or leave without pay. All leave (with or
without pay) must be employer approved.
You are not required to advise us or the Insurer before you go on leave, but you must continue to pay the cost of your cover.
Death, TPD or Income Protection cover will continue at the level you had prior to commencing leave. Your occupation immediately
before you started your leave will be the occupation used for the purposes of the definition of Total Disability during the first
12 months of approved leave.
Your Income Protection cover will end after 12 months of leave, unless otherwise agreed in writing by the Insurer, but may be
reinstated. An application for reinstatement will be assessed by the Insurer and you will be required to provide health information.
After the initial 12 months of leave the definition of Total and Permanent Disability that would apply to your TPD cover would
be limited to loss of limbs or sight, or the inability to perform simple work tasks (see page 6 for details), Permanent
Disability must have lasted for a continuous period of six months or more, and it must be unlikely you will ever return to gainful
employment.
Worldwide cover
You are covered worldwide 24 hours a day, seven days a week.
Continuation of cover
As you can choose to keep your MasterSuper Personal Plan account if you change your job, you may be able to maintain your
insurance cover, too. The same exclusions and other special conditions apply.
Definition of salary
Salary means the income you would receive from your usual occupation before tax is deducted including:
›› cash salary
›› regular overtime (averaged over the previous three years, or since you started working for your employer if less than three years)
›› the monetary value of non-cash benefits or fringe benefits provided as a direct substitute for salary
›› performance related commission, bonuses and other monetary benefits (averaged over the previous three years, or since you
started working for your employer if less than three years).
If you own all or part of the business from which you earn an income, salary is considered:
›› the total amount earned by the business for the financial year (or relevant part of a financial year) as a direct result of your
exertions or activities through your usual occupation, less your share of the business expenses but before tax is deducted.
How to make a claim
In the event of your death, your dependants or legal personal representative will be required to provide certain documents to the
AustralianSuper Trustee in support of a claim for your Death benefit.
For a TPD claim, there may be a waiting period of between three and six before the claim process can begin. The Insurer will
require various medical assessments and other supporting information to process and assess your claim.
For an Income Protection claim, the Insurer will require various medical assessments and other supporting information to process
and assess your claim. The Insurer will pay any expenses incurred in obtaining evidence and information they request (excluding
initial forms and ongoing progress medical reports), unless you fail to attend a pre-arranged medical examination, in which case
you will be liable to pay any fees incurred.
Please call us on 1300 309 466 for further information on how to make a claim.
Interest is paid at the Cash investment option interest rate on the insured component of any Death or TPD claim from the date the
amount is received by AustralianSuper from the Insurer to the date of payment to you or your beneficiaries.
Nominating beneficiaries
Providing guidance to us
By nominating beneficiaries, you’re telling us who you’d like us to pay your super to if you die. We take these beneficiaries into
account when determining who your benefits are paid to, but will also consider other people, depending on your situation when
you die.
Turning guidance into instruction
If you want to make sure the beneficiaries you nominate are the only people to receive a share of your super, then you can make
a ‘binding nomination’. This means that we will be bound to pay the people you have nominated, in the proportions you have
nominated, as long as your nomination is valid and they qualify as dependants or as your legal personal representative when you
die. An annual fee is charged to administer your binding nomination.
Binding nominations are valid for three years from the date we receive your request. It’s important that you review and update
your nomination regularly, if and when your circumstances change – for example, if you marry, divorce or have children. If your
binding nomination runs out, it will become non-binding and will guide rather than instruct us.
To nominate beneficiaries:
You can nominate your beneficiaries online by logging into your online account at www.australiansuper.com/corporate
To make your nomination binding, you’ll need to complete a Binding death benefit nomination form, which you can download from
www.australiansuper.com/corporate
12
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Definition of medical conditions
Blindness
The permanent loss of sight in both eyes, whether aided or unaided, due to illness or injury to the extent that visual acuity is 6/60
or less in both eyes or to the extent that the visual field is reduced to 20 degrees or less of arc, as certified by an ophthalmologist.
Cardiomyopathy
Condition of impaired ventricular function of variable aetiology (often not determined) resulting in significant physical impairment,
ie Class 3 on the New York Heart Association classification of cardiac impairment.
Dementia and Alzheimer’s disease
Clinical diagnosis of dementia (including Alzheimer’s disease) as confirmed by a consultant neurologist, psycho-geriatrician,
psychiatrist or geriatrician. The diagnosis must confirm permanent irreversible failure of brain function resulting in significant
cognitive impairment for which no other recognisable cause has been identified. Significant cognitive impairment means a
deterioration in the person’s Mini-Mental State Examination scores to 24 or less and deterioration would continue but for any
effective treatment. Dementia related to alcohol, drug abuse or Acquired Immune Deficiency Syndrome is excluded.
Diplegia
The total loss of function of both sides of the body due to illness or injury where such loss of function is permanent.
Hearing loss
Complete and irrecoverable loss of hearing, both natural and assisted, from both ears as a result of illness or injury, as certified by
a specialist the Insurer considers appropriate.
Hemiplegia
The total loss of function of one side of the body due to illness or injury, where such loss of function is permanent.
Lung disease (chronic)
Permanent end stage respiratory failure with FEV1 test results of consistently less than one litre, requiring continuous permanent
oxygen therapy.
Major head trauma
Injury to the head resulting in neurological deficit causing either:
›› a permanent loss of at least 25% whole person function (as defined in the American Medical Association publication Guides
to the Evaluation of Permanent Impairment 4th Edition or an equivalent guide to the evaluation of impairment approved by the
Insurer), or
›› the permanent and irreversible inability to perform without the assistance of another person any one of the following activities
of daily living:
–– dressing: the ability to put on and take off clothing,
–– toileting: the ability to use the toilet, including getting on and off,
–– mobility: the ability to get in and out of bed and a chair,
–– continence: the ability to control bowel and bladder function,
–– feeding: the ability to get food from a plate into the mouth, as certified by a consultant neurologist.
Motor neuron disease
Motor neurone disease diagnosed by a consultant neurologist.
Multiple sclerosis
The unequivocal diagnosis of multiple sclerosis as confirmed by a consultant neurologist and characterised by demyelisation in
the brain and spinal cord evidenced by Magnetic Resonance Imaging or other investigations acceptable to the Insurer.
There must have been more than one episode of well-defined neurological deficit with persisting neurological abnormalities.
Muscular dystrophy
The unequivocal diagnosis of muscular dystrophy by a consultant neurologist.
Paraplegia
The permanent loss of use of both legs or both arms, resulting from spinal cord illness or injury.
Parkinson’s disease
The unequivocal diagnosis of Parkinson’s disease by a consultant neurologist where the consultant neurologist confirms that the
condition:
›› is the established cause of two or more of the following:
–– muscular rigidity
–– resting tremor
–– bradykinesia, and
›› has caused significant progressive physical impairment, likely to continue progressing but for any treatment benefit.
The person must be following the advice and treatment of a specialist neurologist.
Primary pulmonary hypertension
Primary pulmonary hypertension associated with right ventricular enlargement established by cardiac catheterisation resulting
in significant permanent physical impairment to the degree of at least Class 3 of the New York Heart Association classification of
cardiac impairment.
AustralianSuper13
Quadriplegia
The permanent loss of use of both arms and both legs resulting from spinal cord illness or injury.
Rheumatoid arthritis (severe)
The unequivocal diagnosis of severe rheumatoid arthritis by a rheumatologist.
The diagnosis must be supported by, and evidence, all of the following criteria:
›› at least a six-week history of severe rheumatoid arthritis which involves three or more of the following joint areas:
–– proximal interphalangeal joints in the hands
–– metacarpophalangeal joints in the hands
–– metatarsophalangeal joints in the foot, wrist, elbow, knee or ankle
›› simultaneous bilateral and symmetrical joint soft tissue swelling or fluid (not bony overgrowth alone), and
›› typical rheumatoid joint deformity and at least two of the following criteria:
–– morning stiffness
–– rheumatoid nodule
–– erosions seen on x-ray imaging
–– the presence of either a positive rheumatoid factor or the serological markers consistent with the diagnosis of severe
rheumatoid arthritis.
Degenerative osteoarthritis and all other arthritides are excluded.
Speech loss
The total and irrecoverable loss of the ability to produce intelligible speech as a result of permanent damage to the larynx or its
nerve supply or the speech centres of the brain.
The loss must be certified by an appropriate medical specialist.
Teraplegia
This document was prepared by AustralianSuper in August 2012. This document is of a general nature and does not take into account your personal
objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure
Statement, available at www.australiansuper.com/corporate or by calling 1300 309 466.
Issued by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898 SPIN STA0001AU,
33/50 Lonsdale Street, MELBOURNE VIC 3000
14
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30089_ins 08/12
The total and permanent loss of use of both arms and both legs, together with loss of head movement, due to brain illness or
injury or spinal cord illness or injury.