Insurance may be one of the most valuable benefits you can obtain through superannuation. It can give you peace of mind knowing that you and your dependants will be looked after if you can no longer earn an income due to disablement or if you die.
Insuring through Equipsuper may be even more valuable if you want to carry your cover with you if you change jobs or take a break from work.* This minimises your exposure to changed medical or other personal circumstances that may preclude you from getting cover as you travel through life. It is important to remember to review your insurance cover regularly to ensure it continues to meet your needs. Some common milestone events that may prompt you to reconsider your cover are:
› Salary increases, promotions and changes of employment;
› Buying a house or renting for the first time;
› Marrying and/or having children;
› Children starting school or moving to new schools or university;
› Changed personal relationships.
This list is not exhaustive, but highlights some of the major drivers of lifestyle change that most of us commonly experience. A good financial planner can help you develop insurance (and investment) strategies and review them with you from time to time to ensure your super is keeping pace with your life and is well aimed at achieving your future goals.
As you review your options, you may wish to consider insurance, its portability and your access to cover in the future. To make any changes to your insurance cover, please contact our Helpline and they will provide you with the relevant forms. All requests must be reviewed in case underwriting is required.
The general information that follows is an overview of insurance offered by Equipsuper, but you should check the Equipsuper PDS applicable to your membership category for information on the terms and conditions of insurance that apply to you.
* On transferring to Equipsuper Personal Division after ceasing employment, your Death and TPD cover in your Corporate account will transfer to the Equipsuper Personal Division. If you had Salary Continuance Insurance as part of your Corporate membership, and were insured by Hannover Life Re of Australia Limited (“Hannover Life”) you can continue this cover in the Equipsuper Personal Division by notifying us within 60 days of ceasing employment.
What types of cover are available?
We offer protection for all types of circumstances that may cause a permanent or temporary interruption to your income. You can apply for death, Total and Permanent Disablement (TPD) and salary continuance (SC) cover via Equipsuper, either through our Corporate or Personal plans. The terms and conditions of access and cover vary according to your membership. The table below explains these types of cover.
Death and TPD
Death and Total and Permanent Disablement (TPD) cover protects you and your dependants from permanent loss of income due to your death or permanent disability through accident or illness.
If you are an Equipsuper Corporate accumulation or defined benefit member^, you will most likely have some level of death and TPD cover. However, several Equipsuper employer subdivisions only offer death cover for employees.
If you lodge a claim for TPD, it will be assessed against the definitions^ prescribed by the relevant insurer, or in the Trust Deed. These definitions vary. In the case of our primary group insurer, Hannover Life, there are two definitions – one covering members who are permanently employed and working 15 hours or more a week, the other (the “Activities of Daily Living” definition) for members who are working less than 15 hours each week or who are not employed.
Other principal Equipsuper group insurers covering members working for some specific employers do not offer the Activities of Daily Living definition, meaning that if you cease employment and are insured by other insurers, your TPD cover will stop. In other cases you may only be insured for death.
To find out which insurer covers you for death and TPD and more about the terms and conditions of your cover, you should refer to the Equipsuper PDS relevant to your membership.
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Salary continuance
Income protection through salary continuance cover is designed to provide you with up to 75% of your annual salary (subject to limits specified in the Equipsuper PDS covering your membership of the Fund) should you be temporarily unable to work through injury or illness. This cover provides you with an income for up to two years.
Salary continuance cover is not available to employees of every Equipsuper employer. If the arrangement agreed between Equipsuper and your employer offers salary continuance cover, you can obtain it through your Equipsuper Corporate membership.
If it is not available via your employer, you can open an Equipsuper Personal account and apply for salary continuance cover.
In many cases applications for salary continuance cover are subject to underwriting by the insurer (in most instances by Hannover Life) when you commence membership in Equipsuper Corporate.
The definitions of disablement applied to salary continuance cover are different to those for Total and Permanent Disablement (TPD) cover. Our insurers also apply income definitions to prescribe which parts of your total annual income are taken into account when calculating the 75% of income.
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^ Definitions may vary for specific employers. The Equipsuper PDS covering your membership of the Fund contains the information specific to your cover. If you are a defined benefit member, the level of Death or TPD benefit offered is prescribed by a formula set out in the benefit design section of the relevant PDS.
If you are in Equipsuper Corporate, you may be automatically accepted for a prescribed level of death TPD and/or Salary Continuance cover. The terms of automatic acceptance will be as negotiated with your employer and are described in the Equipsuper Product Disclosure Statement applicable to your membership.
Some cover is compulsory
If choice of fund legislation applies to you, your employer must nominate an ‘Employer Fund’, which is the fund to which your Superannuation Guarantee (SG) contributions will be paid if you don't choose another fund. The Employer Fund must offer a minimum level of death cover to joining employees (refer to the ATO’s superchoice website for details on this).
If you are joining Equipsuper Personal, you must satisfy underwriting requirements for any type of cover. However, if your accumulation benefit is transferring from Equipsuper Corporate into Equipsuper Personal, subject to satisfying the conditions prescribed in the PDS, you may automatically retain your levels of death and/or TPD cover.
All cover in Equipsuper Personal is offered at fixed levels. In Equipsuper Corporate, the basis varies depending on the terms and conditions applied to your subdivision.
Multiple of salary and fixed cover (for EquipExpress)
Depending on your Equipsuper membership (excluding defined benefit members), the death and TPD insurance cover available to you will be a multiple of salary or fixed.
If you have cover based on a multiple of salary and and your salary doesn’t change, then it operates in the same way as fixed cover. The reality is that your salary will most likely increase over time, even if only by the amount of the Consumer Price Index (CPI), meaning your cover under this formula will also increase over time.
Fixed cover is different. You apply for dollar value of cover which is fixed for the duration of your cover unless you change it. However, as you get older, your premiums generally increase. Fixed cover is the type offered in Equipsuper Personal and to some Equipsuper Corporate members.
If you are unsure about whether you have multiple of salary or fixed cover, please refer to the PDS relevant to your Equipsuper membership, or call our Helpline 1800 682 626.
Factors affecting your premiums
Your premiums are determined by the insurer offering insurance through the Fund. The insurer determines premiums based on statistical analysis of the risks associated with different people and groups of people. Your premiums for any type of insurance cover will vary according to a number of key factors, including:
> Your age and health;
> The level of cover provided;
> Your gender
Your age and health
Your acceptance for cover and the premiums you pay and/or level of cover can be influenced by your health and age. The premiums generally increase as you get older.
If the insurer asks that you satisfy underwriting requirements to be accepted for cover, it usually means that you must provide evidence of good health. You will be asked to complete a statement that includes information about your medical history, to ascertain whether you have any pre-existing conditions and have or have been engaged in risky activities or hobbies.
The insurer may ask you to attend a medical examination by the insurer’s nominated medical practioner before providing you with cover. This examination is usually at the insurer’s expense. Under most conditions, any Fund member voluntarily applying for an increase in cover will be asked to provide health evidence.
Based on your health history, all insurers reserve the right to refuse any type or level of cover.
The level of cover provided
Your level of cover naturally influences the amount you pay. The higher the level, the higher your premium.
Your gender
Males and females are considered to have different risk profiles. For many Equipsuper Corporate members who receive group cover, gender does not influence insurance premiums. Everyone working for that employer has access to the same cover and premiums as their colleagues.
However, for some plans, the premium table is different for males and females. Your Equipsuper PDS or our Helpline staff can tell you if this applies to you. If it does apply to you, you will see in the premium tables that at some stages of life males pay more than females and the reverse is true for other ages.
This website is for general information only. It has been prepared without taking into account your personal objectives, financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice. Where tax information is included you should consider obtaining personal taxation advice. If you are considering investing in the Equipsuper Superannuation Fund, you should read the appropriate Equipsuper Product Disclosure Statement (PDS) before making an investment decision. Neither Equipsuper, nor any employees or directors of Equipsuper, guarantee the repayment of capital or the performance of the Fund. Past performance is not an indication of future performance.
