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It’s never been more important to get on top of your super. If you didn’t already know, most super funds provide members with insurance coverage for total and permanent disability (TPD), as well as income protection insurance for temporary disability. Insurance is an important way of ensuring your financial wellbeing if you are no longer able to work because of illness or injury. However, every super fund is different, as is the insurance coverage they obtain on your behalf. That’s why it’s worth understanding what your super insurance entitles you to. At Littles, we’re doing the hard work for you! We’ve prepared a guide to AustralianSuper’s TPD and income protection insurance benefits. Why? AustralianSuper is Australia’s largest superannuation fund by both membership numbers and assets under investment. Let us take you through
Not an AustralianSuper member? Read more here:
AustralianSuper offers default disability insurance entitlements to its members for both TPD insurance and income protection insurance. This means that as long as you’re an AustralianSuper member, you don’t need to make an application to get coverage – you just need to satisfy the relevant legislative requirements to get default cover. These require that you:
In addition to these legislative requirements, AustralianSuper also requires that you must be capable of working a minimum number of hours in your usual job without restriction when you join.
As an AustralianSuper member, you can apply to increase or change your insurance cover to suit your specific circumstances.
It’s important to be aware of a couple of things in this respect:
Like most super TPD insurance, AustralianSuper uses a number of different definitions of ‘TPD’. To receive a TPD benefit, you must:
AustralianSuper will also consider things such as:
If you satisfy the above requirements and criteria, you’ll be eligible to your TPD cover, as well as the early release of your super account balance.
AustralianSuper income protection payments are payable for two years if you are unable to work due to their illness. These payments are subject to waiting periods of up to 90 days. Benefits are usually payable from the time that you are first certified as unfit to work by a doctor after the expiry of the waiting period. You will generally need to continue to be treated by your doctor to have continued eligibility for income protection benefits.
If you are eligible for income protection benefits, you’ll be paid at 75 per cent of your pre-disability income (capped at a specified amount set out on your super statement). On top of this, a further ten percent of your pre-disability income will be paid into your superannuation account.
You should note that AutralianSuper may ask you to take part in the Insurer’s rehabilitation service if you become disabled. This may include training, retraining or re-skilling to help you return to work. AustralianSuper will pay the cost of this service direct to the service provider. However, if you refuse to take part in the rehabilitation service or delay your participation in it your payments may be reduced.
Do you have an injury or illness that prevents you from working, or just want to know more about what insurance you have under your super? Get in touch with Littles for a free super claims check. We can help you understand what you’re entitled to. Know where you stand, and get peace of mind.