Protecting you and your loved ones
Insurance helps to protect you and your loved ones in case something unexpected happens. Insurance is available to provide members and their families with financial security if unexpected difficulties are encountered. It can help protect you and your family if you die, become totally and permanently disabled, terminally ill or are temporarily unable to work due to injury or illness.
Benefits
There are some benefits and advantages of having insurance through your super rather than buying it yourself outside of super, such as:
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It's often cheaperGroup buying power generally means you enjoy lower premiums compared to buying insurance yourself. It can also be tax effective. Information about the levels of cover and premiums are set out in the Insurance Guide. |
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It's convenientBecause your premiums are automatically deducted from your super account and not from your take home pay – this means you don’t have to remember to pay for it! |
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Fewer medical checksWe offer a default level of Death and Total & Permanent Disablement Cover (‘Default Cover’) without any medical or health checks which can be particularly helpful if you work in a high-risk job or have health conditions*. You will however need to do some medical checks if you apply for Fixed Cover or Income Protection. *You may still be subject to some limitations if you have a pre-existing condition. These limitations are explained in our Insurance Guide. |
Insurance needs calculator
Calculating the right level of cover you may need can be a challenge. Use our insurance needs calculator to help you work out how much cover you may need – the calculator takes into consideration your lifestyle, age, and financial position.
Insurance cover calculator
With our insurance premium calculator, you can see what you’ll pay when you increase or decrease your cover.
Note – the costs represent Fixed Cover premiums only.
Types of insurance we offer
While most people insure their car and home, when it comes to life insurance many people have little or no cover. Think about how you or your family might cope financially if you were not able to work either temporarily or even permanently due to illness, or injury or in the event of your death.
That’s why Australian Ethical Super offers Death, Death and Total & Permanent Disablement (TPD) and Income Protection (IP) cover to our members. We do not offer standalone TPD Cover.
Death and TPD Cover is offered as Default Cover or Fixed Cover, which is explained further below.
Default Cover commences automatically for members who are at least 25 (but no older than 65) and have a super balance of at least $6,000. If you want cover before these conditions are met, you can opt-in to commence cover in the join form or afterwards by completing an Insurance Opt-in Form.
To help you better understand Default Cover, please refer to our Insurance in Superannuation Key Facts Sheet, our FAQs and our Insurance Guide for all the terms and conditions that apply.
While Super Funds must provide Default Cover once the eligibility criteria are met, Default Cover is not compulsory and is provided on an opt-out basis. New members have the option to opt-out of Default Cover when they join. If you’re an existing member and your Default Cover hasn’t commenced, you can contact us (by phone or email) or you can complete section 4 titled ‘Cancel your cover’ on the Insurance Variation Form to opt out of cover commencing.
For members that already hold insurance cover and want to cancel their insurance you can do this online via the member portal, by contacting us (by phone or email) or by section 4 titled ‘Cancel your cover’ on the Insurance Variation Form. For further information about opting -out or cancelling cover and how this may impact you or your beneficiaries in the future, please view our FAQ’s.
If you’d like insurance cover that is tailored to your personal circumstances, we offer Fixed Cover for:
- Death Cover
- Death and Total & Permanent Disablement (TPD) Cover
When you apply for Fixed Cover you are required to answer medical questions and cover may be subject to certain restrictions or loadings.
If you’d like to receive a monthly benefit if you’re temporarily unable to work due to injury or illness, you can apply for IP Cover.
When you apply for IP Cover you are required to answer medical questions and cover may be subject to certain restrictions or loadings.
We’ve further explained the purpose of each benefit type below:
Death Cover pays a lump sum amount to your loved ones if you die or suffer from a Terminal Illness.
Total and Permanent Disablement (TPD) Cover pays a lump sum amount to provide financial support if you suffer an illness or injury that leaves you totally and permanently disabled. Please note we do not offer standalone TPD Cover.
Income Protection (IP) provides you with an income to help meet your living expenses if you're not able to work for a specified period due to illness or injury after completing the relevant waiting period. IP is only offered as a standalone product and is not offered as part of Default Cover.
Please read our Insurance Guide for complete definitions of the types of insurance and the terms and conditions that apply.
To learn more about life insurance try our Personal Insurance education tool.
Did you know?
You can apply to increase your cover without medical screening by applying for Life Events Cover* or New Member Offer Cover*.
You also have the option to Transfer your insurance from another complying super fund*. If you consider transferring your insurance to us, we recommend that you don’t rollover your account balance or don’t cancel your insurance until your insurance cover has been accepted.
*Eligibility terms and conditions apply. To find out more about these options including eliglibilty criteria and how to apply, please refer to our Insurance Guide
Manage your insurance
If you’d like to change or cancel your insurance cover, you can call us on 1800 021 227 to help you through the process.
You can also manage your insurance through your member portal, just click on ‘Manage Insurance’ on the dashboard.
Please refer to the Insurance Guide for more information about varying or cancelling your cover.
Make a claim
Step by step process on how to make an insurance claim with us.
We understand this may be a difficult time for you and your family and we are happy to help you through this process.
Choose who receives your Death Benefit
You can nominate a beneficiary to receive your Super balance and any Death Cover you may hold in the event of your passing.
Australian Ethical Super provides you with three death beneficiary options for your account. Some important legal considerations are outlined below.
- Binding death nominations - you have the choice to determine who should receive your death benefit as long as the people you nominate are classified as a dependant under superannuation law. You can complete the Binding Death Nomination Form to nominate your beneficiary. Please note you need to update your binding nomination every 3 years for it to remain valid.
- Non-binding death nominations (also known as a 'preferred nomination') – As this nomination is not binding, the Trustee has the discretion to pay your money to one or more of your dependants or your legal personal representative (i.e. the executor of your estate). You can make a preferred nomination from your online account from the ‘Beneficiaries’ section.
- No death benefit nomination - your benefit will be paid at the discretion of the Trustee to one or more of your dependants and/or legal representative. It's best to read the Product Disclosure Statement to understand everything you need to know about death benefit nominations.
Regardless of which option you choose, the Trustee must ensure that your money is paid to your dependants or legal personal representative.
Calculating the right level of cover you need can be a challenge. Use our insurance needs calculator to help you work out how much cover you may need – the calculator takes into consideration your lifestyle, age, and financial position.
With our insurance premium calculator, you can see what you'll pay when you increase or decrease your cover.
Note - the costs represent Fixed Cover premiums only.
The cost of Default Cover is calculated as an annual insurance premium using the annual premium rate and occupation loadings. Insurance premiums are deducted from your super account monthly and will vary based on the amount of cover you have under the Default Cover scale, your age, sex at birth, and occupation category. Please refer to our premium rate table in the Insurance Guide.
We offer Default Cover, which consists of a set level of Death & TPD cover depending on your age. As you get older the amount of Death & TPD cover provided to you will change, so will the premiums you pay. Premiums are paid from your super account monthly and the amount you pay depends on your age, occupation and sex at birth.
Default Cover is automatically provided when you are age 25 or older (but under 65) and have had an account balance of $6,000. If you want cover before these conditions are met you can opt in to commence cover at any time by completing an Insurance Opt-in Form.
Please consider the impact insurance has on your retirement savings.
For further details on terms and conditions, please read our Insurance Guide.
If you don’t want Default Cover to commence automatically when you reach the eligibility conditions, you can opt-out of Default Cover when you join the fund. If you’ve already joined the fund and have not met the eligibility criteria, you have the option to opt-out Default Cover before it commences by completing the Insurance Variation Form or you can call us.
It’s important to note once you opt-out of Default Cover, you won’t receive Default Cover in the future. This means you won’t hold insurance cover and won’t be eligible to lodge an insurance claim should you suffer an injury or illness. Please consider how this may affect your dependants including your spouse, children or anyone who is financially dependent on you.
We understand people’s circumstances change so if you require insurance in the future, you will need to apply for insurance. The acceptance of cover is subject to the insurer’s approval (special terms likes loadings or exclusions may apply). You can apply for insurance by online via the member portal or by competing the Insurance Application Form.
Yes – the Default Cover you receive is restricted by new events cover limitations for the first 30 days. New events cover limitations are removed after the first 30 days as long as you meet all of the conditions outlined as outlined in the Insurance Guide, under the heading ‘Are there any restrictions that apply to Default Cover?’
If you would like to fix your Default Cover or nominate a dollar amount of Death & TPD cover you would like to receive without it changing over time*, you can apply for Fixed Cover. Generally, premiums increase as you get older.
If you would like to fix your Default Cover, you can do this by completing the Insurance Variation Form.
If you would like to nominate a dollar amount, you will be subject to medical checks and your cover may be subject to exclusions and loadings. You can apply anytime by completing the paper Insurance Application Form or by logging into the member portal and applying online.
*The level of cover provided under Fixed Cover will remain the same regardless of your age until you reach 61 (subject to maximum insurable age restrictions). From age 61, the level of TPD cover will reduce each year until it reduces to zero at 70.
Income Protection is offered as standalone cover. You can apply for IP anytime by completing the paper Insurance Application form or by logging into the member portal and applying online.
If you choose to cancel your cover within 90 days of the cover first commencing, the cover will cease from the date the cover started. The full premium amount will be refunded back to your account.
However, if you cancel your cover after 90 days of cover commencing, your cover will turn off on the date you notify us of your cancellation. Any owing premiums will be deducted from your super account at the end of the month.
It’s important to note once you cancel your insurance you won’t be eligible to lodge a claim should you suffer and injury or illness after the cancellation date. Please consider how this may affect your dependants including your spouse, children or anyone who is financially dependent on you.
We understand people’s circumstances change so if you require insurance in the future, you will need to apply for insurance. The acceptance of cover is subject to the insurer’s approval (special terms likes loadings or exclusions may apply). You can apply for insurance by online via the member portal or by competing the Insurance Application Form.
If you’d like to cancel your existing cover, you can do this via the member portal, by contacting us (by phone or email) or by completing the Insurance Variation Form.
Please note if your account is unfunded or you leave the fund, your cover will be cancelled.
If you’re a member of Australian Ethical Super, you can have more than one super account, however you cannot hold more than one insurance policy with us.
If you hold multiple super accounts with other funds, there may be limitations which precludes you from claiming under multiple policies. Please be aware of the terms and conditions of all your insurance policies so you avoid paying insurance fees that you may not be able to claim on. Consider the impact of having multiple policies on your retirement savings.
If you’ve transferred your insurance cover from a complying super fund, and your transfer of cover has been accepted but you continue to hold cover in the previous fund, then any benefit paid to you under insurances held through Australian Ethical Super will be reduced by the amount of insurance cover that you continue to hold elsewhere.
Insurance in Superannuation Voluntary Code of Practice
Australian Ethical Super has previously stated its intent to adopt the Insurance in Superannuation Voluntary Code of Practice (the Voluntary Code). The Code had been scheduled to come into effect on 1 January 2022.
Since the development of the Voluntary Code, the majority of the requirements in the code have been overtaken by legislative and regulatory reforms. In addition, many of the elements of the voluntary code have already been implemented by Australian Ethical Super to improve member experience.
For this reason, the Code Owners announced on 1 July 2021 to replace the Voluntary Code. You can see that announcement here.
Guidance on issues not covered by legislation, including on improving outcomes for vulnerable members and claims handling for members with life insurance in group superannuation, has been jointly developed by the Code Owners and Australian Ethical Super will consider this guidance in our interactions with members.
Note: The Code Owners are The Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC).
- Plain language in member communications
- Active management of insurance claims
- Defined timing for processing of claims
- Factsheets available on our website
The Code began on 1 July 2018, and super funds have until 1 January 2022 to fully implement the new requirements.
See our transition/implementation plan below and if you would like more information, please refer to the Voluntary Code.