Protecting you and your family - Protection and peace of mind for the person that matters most - YOU - VicSuper
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Protecting you
and your family
Protection and peace of Insurance
Handbook
mind for the person that
matters most – YOU
NDING VA
STA L
UT
UE
O
2020 - 2021
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UP NVESTMENT
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S
ERA
NNUAT
Ratings are just one factor to consider when deciding on a product. The Canstar 5-Star Rating
for Outstanding Value Superannuation was awarded in March 2020 and April 2021 for VicSuper
FutureSaver. The VicSuper FutureSaver product earned these awards when it was part of the
Victorian Superannuation Fund. From 1 July 2020, the product is offered as part of the VicSuper
division in Aware Super. As the product features have not materially changed, the awards still apply
to the VicSuper FutureSaver product. SuperRatings does not issue, sell, guarantee or underwrite
this product. Go to superratings.com.au for details of its ratings criteria. For more information
about the methodology used by Chant West, see chantwest.com.au For more information about
our awards and ratings go to vicsuper.com.au/awards. 31 August 2021
About Us We’re now one of Australia’s largest industry funds and we’re continuing to grow, providing superannuation, insurance, advice and retirement solutions to those who teach, nurse, respond and help others in our communities. We’ve made a commitment to our members: to do well for them by doing good for all. VicSuper FutureSaver is a product available as part of the VicSuper division in Aware Super (the Fund), which manages more than $150 billion on behalf of 1 million Australians. The trustee of the Fund is Aware Super Pty Ltd (Trustee). VicSuper FutureSaver was previously a product in the Victorian Superannuation Fund. It is now offered by the Trustee as a result of the transfer of all members and assets in the Victorian Superannuation Fund to the Fund on 1 July 2020. Victorian Superannuation Fund no longer exists as a separate fund. This document has been issued by Aware Super Pty Ltd (referred to in this document as the ‘trustee’, ‘we’, ‘us’, ‘our’), the trustee for Aware Super (referred to as ‘Aware Super’ or ‘the Fund’). A little bit about our insurer MetLife More than 90 million people around the world have put their trust in MetLife, Inc. to protect what matters most – their families, their ambitions and their achievements. MetLife is one of the top three group insurers in Australia with over 2,500,000 lives covered. We are confident MetLife has the scale and experience to deliver great outcomes for our members. All references to the insurer in this handbook mean MetLife Insurance Limited ABN 75 004 274 882.
Protecting you and your family
Insurance with us is a It’s a group policy, provided by We can help you understand what
MetLife, offering death, total and levels of cover you need and make it
unique policy designed just permanent disability (TPD) and easy to increase or reduce cover as
for our members. income protection (IP) covers, your circumstances change.
developed specifically to best serve And if you ever need to make a claim
the ages, gender and occupations of – we’re there to help you through
our membership. the process.
Our size and scale are used to secure
the best deal possible and we
review arrangements with our
insurer regularly.
Fast facts
128,000+ Total cover for all
VicSuper FutureSaver
Benefits paid to
VicSuper FutureSaver
members insured members exceeds members in the
with VicSuper 12 months to
FutureSaver $31 billion June 2021 exceed
(approximate as at 30 June 2021) Death and TPD cover
$52.3 million
Cover 24/7 $375 million Death and TPD claims
at work, home or Income protection
overseas per month
(approximate as at 30 June 2021)
Contents
Why have insurance cover? 5
Insurance through VicSuper FutureSaver 6
Types of VicSuper FutureSaver membership 7
Making changes to your cover 10
Understanding your occupation category 15
General information about your cover 16
Death and TPD cover 20
Income Protection 31
Claims 37
Definitions 44
Our privacy information 47
All words in italics (with the exception of forms) have an associated definition which can be found on page 44.
4
Why have
insurance
cover?
We think nothing of insuring our cars. They’re expensive to replace, and we accept that
there’s a chance they could be involved in an accident. Likewise, with your house and
contents, most likely your single biggest investment. Where would you be if disaster struck
and you weren’t covered?
It just makes good sense to insure the most valuable Total & permanent disablement (TPD)
asset you’ll ever have – YOU. TPD cover is designed to assist you financially in the
An injury or illness could have a devastating effect on your event you become totally and permanently disabled,
finances and the chance of that happening could be and due to your medical condition are unlikely to ever
greater than you think. If you died or became permanently be able to return to work again. Your TPD benefit is paid
or temporarily disabled tomorrow, would you and the as a lump sum.
people you care most about cope?
Income protection
• How would the rent or mortgage be paid? Income protection cover provides you with a replacement
• What would happen to the kids’ education? income if you’re unable to work due to illness or injury for a
• Would your business survive? period of time. There are options to have different waiting
• Who would pay the costs of ongoing care? and benefit periods. Please refer to page 31 and 32 for
These are just a few examples of what you may have to further details. The monthly payments, of up to 85% of
deal with. Of course we all hope we never need to make a your pre-disability income are paid at the end of the
claim. But isn’t it reassuring to know there’s a safety net if month, in arrears, and are considered taxable income.
you need it?
Types of insurance cover Important information
We offer members three types of insurance cover. Different insurance arrangements apply depending on
Death the type of account you hold as a member.
Death cover is designed to assist your family and loved This Insurance Handbook outlines the insurance
ones financially in the event of your death. arrangements that apply to the two types of
memberships explained on page 7.
Your death cover can also be paid in the event of terminal
illness. To receive this benefit, your expected date of death
must be within 12 months of the date of your most recent
certification provided by your medical practitioners.
5
Insurance through
VicSuper FutureSaver
Your choice of cover Fixed cover is only available on death and death and
You may choose the type of cover you would like to hold. TPD cover.
However, TPD cover can only be held in conjunction with Income protection unit-based cover
death cover and importantly, the level of TPD cover may
Income protection is provided as units of cover. Each unit
never exceed the level of death cover.
provides a benefit of $500 per month. You can only have
As such, you can apply for any of, or a combination of, the whole units of cover however, regardless of how many
following: units you have, you will not receive a benefit greater than
• Death only 85% of your pre-disability income. Any benefit paid above
75% of your pre-disability income will be directed into your
• Death and TPD
VicSuper FutureSaver account as a superannuation
• Income protection contribution.
When you apply for death only or death and TPD cover,
you’ll also be given the option of unit-based cover or Who can obtain cover?
fixed cover. You’re eligible for death and TPD cover through VicSuper
FutureSaver if you’re:
Unit-based cover
With unit-based cover, the cost of each unit is the same • an EmployeeSaver or PersonalSaver member, and
regardless of age. However, the dollar value of cover of each • at least 14 years of age, and
unit is linked with your age and will gradually decrease. • less than:
Unit-based cover can assist you to keep your insurance – 70 years of age for death cover
premium cost low by reducing the total amount of cover – 65 years of age for TPD cover, and
over time. • legally permitted to reside and work for reward in
Australia.
Fixed cover
You’re eligible for income protection cover if you’re:
Fixed cover is provided in the form of a dollar amount.
Unlike unit-based cover, the level of cover remains the • an EmployeeSaver or PersonalSaver member, and
same regardless of age, however, the premium gradually • at least 14 years of age, but less than 65 years of age,
increases with your age. and
Fixed cover lets you choose and maintain the level of cover • legally permitted to reside and work for reward in
you need to protect you and your loved ones regardless of Australia, and
age. • either self-employed, a casual employee, a contractor
with a contract with your employer of at least 6 months
Note, you can select either unit-based cover or fixed
or a permanent employee.
cover, but not a combination of both.
6
Types of VicSuper FutureSaver membership In addition, there is a new member offer period where you
Different insurance arrangements apply depending on the may be able to vary your cover (within limits), decrease
type of account you hold as a member. You can be either a your income protection waiting period, or increase your
PersonalSaver or an EmployeeSaver member. This section income protection benefit period, with minimal
covers both. underwriting requirements. Please refer to the new
member offer section on page 9 for details.
PersonalSaver
Electing to activate your default cover
If you join VicSuper FutureSaver directly, by completing an
application form, you’re a PersonalSaver member. As an EmployeeSaver member, you don’t automatically
receive default cover until you are at least 25 years old and
A PersonalSaver member has access to the full range of your account balance has reached $6,000 at some point,
insurance options but needs to apply for the type and level of provided you also meet the other requirements listed above.
cover they want. A PersonalSaver member can apply for cover:
If you would like to begin your insurance cover prior to
• by completing an online application at VicSuper either turning 25 or your account balance reaching $6,000,
MembersOnline at vicsuper.com.au – log in to apply for a you can elect to activate your default insurance cover.
fast assessment
• by mailing in an application form You can activate your default cover online via your
VicSuper MembersOnline account or by downloading and
• in person at one of our Advice Centres.
completing the Activate your insurance cover form found
There are circumstances where pre-existing condition at vicsuper.com.au/forms
restrictions may apply to the cover issued. Please refer to
the pre-existing conditions section on page 16 for details. Default cover amount
A PersonalSaver member has no automatic default cover or The number of units you will receive is dependent on your
any new member offer period. age, as shown in the table below.
Age upon Death TPD Income
When applying for cover it’s important you understand
joining Protection
the duty to take reasonable care not to make a
misrepresentation. Please read further details on 14 – 64 6 units 6 units 6 units
page 12. 65 – 69 6 units 0 units 0 units
EmployeeSaver Your default income protection cover has a two-year
When you join VicSuper FutureSaver through a participating benefit period and a 90-day waiting period.
employer that pays superannuation guarantee (SG) payments The cost of insurance with us depends on your occupation
into your account, you’re an EmployeeSaver member. category. Default cover is provided under the general
An eligible EmployeeSaver member may automatically receive occupation category. Please refer to page 15 for details on
insurance cover, known as ‘default cover’. See below for details. occupation category and how lower risk occupations can
have access to cover with a lower premium.
Default cover Provided you have an adequate balance to cover the cost
If you are an eligible EmployeeSaver member you will of your premiums, your cover will remain active subject to
automatically receive cover for Death, TPD and Income the conditions mentioned on page 18.
Protection, known as ‘default cover’, provided:
Once your cover is active, if you would like to reduce or
• that you have had an account balance of at least $6,000 cancel your default cover, you will receive a refund of
and are at least 25 years old, or premium where you advise us of the cancellation within 60
• you make a valid election to receive cover if these days of us confirming that your default insurance has
requirements are not met. commenced. The reduction or cancellation will take effect
To be eligible to receive the default cover you must also: from the date default cover commenced and the relevant
cover will be considered to never have started.
• have received a contribution or rollover into your
EmployeeSaver account within the previous 16 months, and
• have previously not elected to opt out of default cover, and Remember, if at the time of joining you are under
age 25, or your super balance hasn’t reached $6,000,
• meet the eligibility criteria on the previous page, and
we will activate your default insurance when your
• have not already received default cover under the same account balance has reached $6,000 and you are at
account before, and least 25 years old. We will notify you once your
• have not received and are not entitled to receive a insurance is activated and provide you with the
terminal illness or total and permanent disability payment opportunity to cancel or change it.
from any policy.
There are circumstances where pre-existing condition As a new EmployeeSaver member if you don’t want
restrictions may apply to the cover issued. Please refer to default cover activated automatically, simply contact us
the pre-existing conditions section on page 16 for details. for the relevant forms.
7
Examples of activating default cover
Under 25 member with balance Over 25 and balance reaches Electing to activate default
over $6,000 $6,000 cover
Angela is 23 years old and has Steven is 44 years old and has Ryan is 31 years old and has just
just joined us as an just joined us as an joined us as an EmployeeSaver
EmployeeSaver member. EmployeeSaver member. member.
As she is under 25 years old, and His employer makes the first His employer makes the first
she only just joined with a zero monthly SG contribution to his fortnightly SG contribution to
starting balance, her default new account of $785. As his his new account, of $325. Ryan
insurance cover has not begun. balance is under the $6,000 has recently bought a house
Angela chooses not to activate required balance, Steven’s default and would like to ensure that he
her default cover. Around 12 insurance cover has not begun. has his death, TPD and income
months later, at age 24, Angela Steven does not elect to activate protection insurance sorted out
has accumulated $6,500 in her his default cover. Three months in case anything were to
account. As she is still under 25 later, Steven’s employer has happen to him. So, he elects to
years old, her default insurance made more contributions, and he activate his default insurance
cover has not begun. On has rolled over his balance from cover as soon as he receives his
Angela’s 25th birthday, she has another super fund. He now has welcome letter. Even though his
$8,240 in her account. As she $15,715 in his account. As Steven account balance is under the
has now reached the age has reached the balance required $6,000, as Ryan has
requirement of 25, and her requirement of $6,000, and he is elected to activate his default
balance is over $6,000, her over the age of 25, his default cover himself, his cover begins
default insurance cover is insurance cover is activated on from the date that election is
activated on her account from his account from the date his received by the fund.
her 25th birthday. balance reached $6,000.
8
New member offer It is likely that if you are eligible for default insurance cover
When you first join as an EmployeeSaver member, you can your cover won’t start straight away when you join as a
take advantage of the new member offer, which allows new member and that instead you will need to elect to
you to increase or change your cover with minimal activate your default cover (outlined in Default cover on
underwriting requirements. This means you may not need page 7).
to complete lengthy forms or undergo medical tests. In order to increase or change your insurance cover under
The new member offer period is 90 days from the date of the new member offer, you must have default cover active
your welcome to the fund letter. During this time, you’re on your account and be within the 90 day new member
able to: offer period.
• increase your death and TPD cover by up to two units; To take advantage of the new member offer, log on to
your VicSuper MembersOnline account at vicsuper.com.au
• increase your income protection cover by up to
and complete an online application or download and
two units;
complete the Insurance application EmployeeSaver form to
• increase your income protection benefit period to mail back to us at VicSuper Team, Aware Super, GPO Box
5 years; 89 Melbourne Victoria 3001.
• decrease your income protection waiting period to
either 30 or 60 days. Please Note: If you elect to make a change to any of your
insurance, your new member offer period ends.
When does my default cover and new member offer start?
There are various ways cover can be obtained with us. The way your cover is obtained will determine when your cover
commences.
How cover was obtained When your cover starts
Default cover for an eligible the date:
EmployeeSaver member • you first elect to activate the default cover; or
• your account balance has reached $6,000 and you are at least
25 years old,
and you meet the other requirements for receiving default cover
outlined on page 7.
• New member offer cover • The date the application, which has been completed to the insurer’s
satisfaction, is received by us.
9
Making changes
to your cover
We understand everyone is unique and has their own individual financial protection needs.
It’s important you review your situation and consider how much cover is right for you. You
can apply to make changes to your insurance cover anytime, including increasing,
decreasing or cancelling your cover.
How much cover can I have?
Please note:
You’re able to apply to increase your cover at any time.
Applying for additional cover is subject to underwriting Your insurance premiums are charged monthly in
and you can increase your cover up to a maximum of: arrears and may change in the month of your birthday
or if your cover changes or is cancelled. It’s important
Type of cover Maximum cover to understand your insurance premium deductions
may be eroding your account balance for when you
Death Unlimited do retire.
TPD $5,000,000 You should consider if your insurance through your
Income Protection $30,000 per month* VicSuper FutureSaver account is appropriate for your
financial circumstances and whether or not you’d like
* The maximum income protection benefit that can be paid is 85% of to maintain or amend your insurance cover. Log in to
your income. This includes 10%, which is contributed into your VicSuper
FutureSaver account as a superannuation contribution. your VicSuper MembersOnline or contact us if you
would like more information about your monthly
premiums.
If you cancel your cover, any future request for
additional cover will be subject to health assessment,
insurance policy conditions and acceptance by the
insurer, and you may not be approved for cover.
10How to apply for additional cover Any exclusions, restrictions, premium loadings and other
We want to make it easy for you to get your insurance special conditions which applied to your cover in your
cover. You can apply for additional cover: former super fund will apply under this policy, until they
expire according to their terms.
• By completing an online application at VicSuper
MembersOnline at vicsuper.com.au – log in to apply for Following confirmation by us accepting the transferred
a fast assessment cover, you must cancel the cover with the former super
fund and not continue it through another insurance
• By mailing in an application form
arrangement. If you do not cancel your insurance with your
• In person at one of our Advice Centres former super fund, you may be ineligible to claim with us.
Due to recent changes in superannuation requirements, we
will ask you to make certain elections in your application in Please note, to be eligible to transfer cover to us, you
order to provide you with cover – please see page 18 for must hold active cover in your other super fund. It is
further details. important that you do not cancel cover held in your
other super fund until we have confirmed your transfer.
When applying for cover it’s important you understand
the duty to take reasonable care not to make a
misrepresentation. Please read further details on Life events (Death and TPD only)
page 12. Life is full of change, so too is our need for insurance cover.
When significant events happen in our lives, we often need
to increase our cover, like when we buy our first home, or
Transferring existing cover from another start a family. That’s why we’ve identified significant events
super fund in our lives and made it easy to increase cover in those
It is not uncommon to have multiple superannuation times without the need to complete a full personal
accounts at any given time, usually due to changing statement and provide medical evidence.
employers where a new superannuation account is Our Life events option allows you to increase your death
established in your name. and TPD cover (or death only cover if you currently only
It’s commonly understood that you can transfer your other have death cover), when any of the following events occur:
existing superannuation funds into your account. However, • y ou marry or register a de facto relationship or you
did you know you can also roll your existing insurance held reach the first anniversary of these events with the
with another super fund into your account with us? same person
This means you can have your superannuation and • you divorce or register a separation from a marriage or
insurance in one place, where you can easily manage your de facto relationship or you reach the first anniversary of
level of cover and premiums. these events with the same person
We can accept transfer of death only, death and • you have a child or adopt a child
TPD, and/or income protection cover from your other • you take out a mortgage on the initial purchase of a
superannuation funds. When you transfer TPD cover, you primary residence
can only be granted TPD cover up to but not greater than • you increase an existing mortgage on your primary
your Death cover with us. residence for renovations/extension (the mortgage
Transfer of cover is subject to approval by the insurer and increase must be at least $50,000 and only accidental
only available to members under the age of 60. Death or death and accidental TPD cover will be provided for the
TPD cover transferred will be added to your existing cover first 6 months)
with us, subject to some maximum transfer and cover • your child turns 12
limits. You will be required to provide evidence to support
Income protection transferred will replace your existing your application.
income protection cover with us. Where the benefit period Please refer to the Life events insurance increase request
or waiting period of your previous cover is not supported form for a list of evidence required to apply for cover, or
by us, alternate benefit and waiting periods will be used. call our Member Centre on 1300 366 216. You can apply
Transfer of cover will be subject to approval by the insurer. for Life events online or by completing the application
For details and eligibility criteria to transfer your cover, form in writing.
please read the Transfer your insurance form or call our You can increase your cover by up to two units if you hold
Member Centre on 1300 366 216 to discuss your options. unit-based cover, or up to an additional fixed cover
You can apply for an insurance transfer online or by amount equivalent to two units of unit-based cover
completing the application form in writing. (reflecting your age), if you hold fixed cover.
11You must apply for your life event increase within 6 months of the event occurring.
A maximum of three life events increases is allowed, with at least 12 months between increases.
Any additional cover obtained under a life event will be subject to the same premium loadings and/or exclusions
applicable to any other cover you may have.
Life events example
Elise is 34 years of age and is excited to have just purchased her
first home.
Now that Elise has a large mortgage, she wants to make sure her
debt can be paid off in the event of her death or TPD.
As taking out a mortgage on the initial purchase of a primary
residence is a one of the accepted life events under our death and
TPD insurance, Elise is able to increase her cover without undergoing
the full underwriting process.
Elise needs to supply:
1. A letter from her lender showing the identity of the lender and
confirming:
• The amount of the loan to purchase her principal place of
residence, and
• The loan has been drawn down (not just approved), and
2. A statutory declaration that the mortgaged property is her
principal place of residence.
Elise is able to supply this evidence and has chosen to increase her
death and TPD cover by two units, available under life events.
This has allowed Elise additional death and TPD cover of $103,000.
Elise now has peace of mind that she has financial protection.
The duty to take reasonable care not to make a misrepresentation
The duty to take reasonable care
Care must be taken to answer all questions When applying for insurance, there is a duty to take
the insurer will ask as part of your insurance reasonable care not to make a misrepresentation.
application honestly and accurately.
Otherwise, you may not be able to rely on A misrepresentation could be made if an answer is given
your insurance when it’s needed the most. that is false, only partially true, or that does not fairly reflect
the truth. This means when answering the insurer’s
When you apply for life insurance, the insurer will ask questions, you should respond fully, honestly and accurately.
you a number of questions. The duty to take reasonable care not to make a
The insurer’s questions will be clear and specific. They misrepresentation applies any time you answer the
will be about things such as your health and medical insurer’s questions as part of an initial application for
history, occupation, income, lifestyle, pastimes, and insurance, an application to extend or make changes to
other insurance. existing insurance, or an application to reinstate insurance.
The answers given in response to the insurer’s questions You are responsible for all answers given, even if someone
are very important. The insurer will use them to decide if assists you with your application.
the insurer can provide cover to you and, if the insurer The insurer may later investigate the answers given in your
can, the terms of the cover and the premium it will application, including at the time of a claim.
charge.
12Consequences of not complying with the duty
If there is a failure to comply with the duty to take reasonable care not to make a misrepresentation, it can have serious
consequences for your insurance, such as those explained below:
Potential consequences Additional explanation Impact on claims
• Your cover being avoided This means your cover will be treated Any claim that has been made will not
as if it never existed be payable
• The amount of your cover Your cover level could be reduced If a claim has been made, a lower
being changed benefit may be payable
• The terms of your cover being The insurer could, for example, add an If a claim has been made for an event
changed exclusion to your cover meaning claims that is now excluded, it will not be
for certain events will not be payable payable
If the insurer believes there has been a breach of the duty • Answer truthfully, accurately and completely. If you are
to take reasonable care not to make a misrepresentation, unsure about whether you should include information,
the insurer will let you know their reasons and the please include it or check with the insurer.
information they relied on and give you an opportunity to • Review your application carefully. If someone else helped
provide an explanation. prepare your application (for example, your adviser),
In determining if there has been a breach of the duty, the please check every answer (and make corrections if
insurer will consider all relevant circumstances. needed) before the application is submitted.
The rights the insurer has if there has been a failure to Other important information
comply with the duty will depend on factors such as what Your application for cover will be treated as if you are
the insurer would have done had a misrepresentation not applying for an individual ‘consumer insurance contract’.
been made during your application process and whether For this reason, the duty to take reasonable care not to
or not the misrepresentation was fraudulently made. make a misrepresentation applies.
If the insurer decides to take some action on your cover, Before your cover starts, the insurer may ask about any
they will advise you of their decision and the process to changes that mean you would now answer the insurer’s
have this reviewed or make a complaint if you disagree questions differently. As any changes might require further
with the insurer’s decision. assessment or investigation, it could save time if you let
the insurer know about any changes when they happen.
Guidance for answering the insurer’s questions
If after the cover starts, you think you may not have met
When answering the insurer’s questions, please:
your duty, please contact the insurer immediately and the
• Think carefully about each question before you answer. insurer will let you know whether it has any impact on the
If you are unsure of the meaning of any question, please cover.
ask the insurer before you respond.
It’s important that you understand this information and the
• Answer every question that the insurer asks you. questions the insurer asks, so if you have any queries
• Do not assume that the insurer will contact your doctor please contact the insurer.
for any medical information.
When does my cover start?
The way your cover is obtained will determine when your cover commences.
How cover was obtained When your cover starts
Additional cover or The date the insurer accepts your additional cover or Life events cover. We will
Life events cover advise you of this date in writing.
Transferred cover The date the insurer accepted the transferred cover application. We will advise
(from the former super fund) you of this date in writing.
13Interim cover • Accidental total disability – up to 85% of your
When you apply for additional cover, you’ll be granted pre-disability income, paid monthly in arrears for
interim cover. Interim cover provides you with some up to two years.
financial protection during the period in which your If you have existing income protection cover in place, the
application is being assessed. two year benefit period will commence immediately after
Interim cover includes cover for accidental death, the cessation of the benefit period of your cover, currently
accidental TPD and accidental total disability. in place.
Accidental You’ll be paid a benefit if you applied for Special conditions (exclusions and loadings)
death cover death cover and suffer an accidental When you apply for cover, the insurer will assess your
event resulting in accidental death during personal situation (including occupation, activities and
the interim accident cover period. pastimes) and medical history to determine if you’re
eligible to be granted cover.
The death must be within 90 days of
the accidental event for this benefit to As is the case for most people, it’s not expected that you
be paid. should have a perfect health record. Where you’ve had any
medical conditions in the past, the insurer will assess
Accidental You’ll be paid a benefit if you applied for whether you made a full recovery and any risk of relapse
TPD cover TPD cover and suffer an accidental event to determine if you should be granted cover without any
resulting in accidental total and conditions. Or, if the risk is considered too great, they may
permanent disability that occurs during offer cover with an exclusion or a loading.
the interim accident cover period.
An exclusion is where a benefit cannot be paid for a
The date of disablement must be within particular health condition or activity. You will be informed
90 days of the accidental event for this of any exclusions where you will not be eligible to make a
benefit to be paid. claim if the claim arose directly or indirectly as a result of
Accidental You’ll be paid a benefit if you applied for that excluded condition or activity.
total income protection and suffer an A loading is a variation to your standard insurance
disability accidental injury resulting in a total premium. A loading still allows you to claim for all medical
disability that occurs during the interim conditions, however, the cost of having that insurance
accident cover period. cover is increased. For example, if your income protection
The date of disablement must be within premium was expected to be $300 per annum and a 50%
90 days of the accidental event for this loading was to apply, your income protection premium
benefit to be paid. would be $450 per annum.
Where an exclusion or loading is to apply, we will write to
Interim cover starts on the date we receive your application you to inform you of the special terms. If you don’t
for additional cover and ends on the earliest of the respond, the cover will remain with the exclusion or
following events: loading applied. If you don’t wish to accept the special
• your application is withdrawn, terms, you must request that the cover with special terms
be cancelled, within 30 days of the cover being granted.
• your application is accepted,
Your cover will then revert to the previous level and any
• 20 business days after your application is declined, premiums deducted for the cover with special terms will
• an interim cover benefit becomes payable, be refunded.
• 60 days has passed since you lodged your application,
• you become ineligible to apply for cover, When your application for cover is declined
• any existing cover you have ends; or In some cases, the risk may be considered too great and
• this policy terminates. the insurer may decline your application for cover. You can
request copies of the documents and information the
In the event of a successful claim, your benefit will be insurer relied on to make the decision. If you do not agree
the amount of cover you would have received, if your with the decision and you have further evidence that can
application is accepted. support your application, you’re able to request the insurer
The benefit payable under interim cover is the amount of to review the decision. However, you may need to cover
cover applied for, up to a maximum of: the costs of any medical evidence required to have your
application reassessed.
• Accidental death – $5,000,000
• Accidental TPD – $5,000,000
14Understanding your occupation category
Occupation category
General Answering ‘no’ to both parts
The cost of insurance with us depends on your occupation. of Question 1.
We’ve designed our premiums to allow those in lower risk
occupations to have access to cover with a lower premium. White collar Answering ‘yes’ to Question 1.(b)
There are three occupation categories that may apply: or
answering ‘yes’ to Question 1.(a)
1. General
but ‘no’ to Question 2 or both parts
2. White Collar of Question 3,
3. Professional
Professional Answering ‘yes’ to Question 1.(a) and
To determine your occupation category, answer the Question 2 and either (a) or (b) in
following questions. Question 3.
Note, members who answer ‘yes’ to
Occupation questionnaire Question 1.(b) are not eligible for the
1. Are the duties of your regular occupation limited to ‘Professional’ occupation scale
either:
a) Professional, managerial, administrative, clerical or These occupation categories are listed in the premium
similar ‘white collar’ duties which are undertaken in pricing tables in the Death & TPD and Income protection
an office environment for at least 90% of your regular sections of this handbook.
working hours, or managerial duties within an
educational institution (For example, school principal Own occupation category – income protection only
or deputy principal)? If you qualify for the white collar or professional
or occupation category, you can apply for the own
occupation category. This option is only available for
b) Educational duties performed within a school or income protection and will allow a benefit to be paid
other educational institution (other than a school under a modified disablement definition.
principal or deputy principal)?
For further information, including eligibility criteria, refer to
2. Is the income you earn from your occupation greater page 35.
than $100,000 per annum?
3. Do you: Change to occupation category
a) Hold a tertiary qualification or are you a registered The default occupation category is the ‘general’ category.
member of a professional institute or governing body You should consider if we have the right occupation
in relation to your profession? category applied to your insurance cover.
or You can apply to change your occupation category at any
time by logging on to your VicSuper MembersOnline
b) Work in a management role? account and completing an online application at
vicsuper.com.au or simply download and complete the
Insurance application EmployeeSaver form or the
Insurance application PersonalSaver form and mail it back
to us at VicSuper Team, Aware Super, GPO Box 89
Melbourne Victoria 3001.
High risk occupations
Unfortunately, some occupations do carry increased risk
NEED A LITTLE HELP? and we may be unable to offer additional cover.
However, we do recommend regardless of the risk level of
Not sure what your occupation
your occupation that you call us to confirm your eligibility for
category could be? cover. Depending on your situation, we may still offer death
Call our team on 1300 366 216. only or death and TPD cover, but not income protection.
We believe this is important, and want you to have access
to some financial protection for you and your loved ones.
15General information about your cover
Pre-existing conditions
Pre-existing conditions is a restriction applied to your cover on the type of events that you’re eligible to claim for. The
restriction means you can only make an eligible claim for any medical condition which you were diagnosed with, had any
symptoms of, or were treated for the first time after your cover starts.
This restriction is only applied in the specific circumstances as set out in the table below. Once you have satisfied any
applicable waiting period, the pre-existing conditions restriction will be removed. You’re then entitled to make a claim on
any medical condition, regardless of when it first occurred. Of course, you can still only claim where the death, terminal
illness or disability occurs while you’re covered by us.
Pre-existing conditions restrictions will apply in all the following scenarios:
How long will pre-existing conditions
Pre-existing conditions scenario
restrictions apply
EmployeeSaver only Pre-existing conditions restriction will apply to
You’re not at work on the date your default cover started. your default cover and any new member offer
cover for:
EmployeeSaver only
You commenced employment with a participating employer, however, • 12 months after the date your cover started,
the participating employer did not make an SG contribution to your and
account within six months of you commencing employment with the • if you’re not at work at the end of that
participating employer. 12 month period, pre-existing conditions
restriction will continue until you’re at work
EmployeeSaver only for at least two consecutive months after the
You commenced employment with a participating employer, however initial 12 month period
an SG contribution to your account was not received that relates to
the date your default cover started.
EmployeeSaver only
You received default cover as a result of your employer nominating us
as its default fund, however, your employer did not make an SG
contribution to your account within four months of the date your
employer nominates us as its default fund.
EmployeeSaver only
You received default cover as a result of your employer nominating us
as its default fund, however an SG contribution to your account was
not received that relates to the date your default cover started.
EmployeeSaver and PersonalSaver Only the rounded up portion will have pre-
You have switched your death and TPD cover from fixed cover to existing conditions restriction applied until
unit-based cover, which has resulted in the rounding up your benefit. you’re at work for at least two consecutive
months.
16Overseas
You’re able to travel overseas without your insurance cover
being affected. As long as you have an adequate balance
to cover premiums, your cover will continue to remain
active, subject to you meeting all other eligibility criteria to
retain cover.
In the event of a claim you may be required to return to
Australia at your own expense for medical treatment or
assessment. A benefit may not be payable if you do not
return to Australia.
Leaving your employer
From time to time, you may change jobs. If you leave
your participating employer, but you remain a member,
your death, TPD and income protection cover continues
provided that you continue to meet policy conditions
including having sufficient funds in your account to
meet the premiums at all times and you are not an
inactive member.
However, if you’re unemployed at the date of
disablement, you will not be eligible to make an income
protection claim. It is your responsibility to review your
insurance to make sure it meets your needs and to make
changes if necessary. Refer to ‘Unemployment’, on page
35 for further details.
In circumstances where you have been unemployed for
more than 24 months at the date of disablement, you will
have a restricted TPD definition applied in the event of a
claim. You will only be able to claim TPD under the Part 2
– Specific Loss and Part 3 – Future Care definitions. Refer
to page 28 for the definition.
17When does cover cease?
Your cover will cease when any of the following occur:
If you… Cover ends on…
are paid a benefit (death and TPD cover the date the death, terminal illness or TPD benefit becomes payable.
only) If your TPD benefit amount is less than the death cover, the balance of your
death cover will continue subject to the terms and conditions of the policy.
If you are paid a death, terminal illness or TPD benefit and your event date is
on or after 1 April 2020, any premiums paid for death or TPD cover after the
event date, will be refunded, except for any premiums relating to death cover
that continues after the payment of a TPD benefit. No claim may be made
for any period for which premiums have been refunded.
reach the cover expiry age the date you turn 70 for death and TPD.
the date you turn 65 for income protection.
leave the fund the date you leave the fund.
die the date of your death.
tell us in writing that you want to cancel the date we receive a request from you in writing to cancel your cover, or
your cover when you cancel your cover online.
have insufficient funds in your account the last day of the month where you were unable to pay your insurance
to pay your monthly insurance premiums in full.
premiums
are an inactive member for 16 the day after the date you have been an inactive member for 16
continuous months (and are not continuous months.
exempted from inactivity requirements)
do not return from unpaid leave* the later of:
(income protection cover only) • 24 months from the date your leave commenced for parental leave, or
• 12 months from the date your leave commenced for any other unpaid leave.
Unless another date is agreed to by the insurer.
make a fraudulent claim the date you lodge the fraudulent claim.
become unemployed the date 12 months after you ceased to be employed.
(income protection cover only)
are no longer eligible for cover under the date you cease to be eligible.
the fund’s governing rules
were able to hold cover despite being the date you are no longer exempt if you are under 25 or your account
under age 25 or having an account balance has not reached $6,000.
balance that has not reached $6,000
due to a special exemption^ and that
exemption no longer applies
* If you become unemployed or do not return from unpaid leave, your cover will continue subject to the terms and conditions of the insurance
policy until the cover end date mentioned above. It’s important that you regularly review your insurance needs and make changes where necessary.
^The exemptions are limited and contained within the Superannuation Industry (Supervision) Act 1993 (Cth).
18Cancelling or reducing cover During the three months after the date your cover ceased,
Sometimes insurance cover is no longer of value to any amounts received into your account will first be used
you, due to your personal and financial circumstances. to cover any outstanding premiums up to the end of the
You’re able to cancel or reduce your cover at any time month your cover ceased, and then for any period after
by going to vicsuper.com.au and logging on to VicSuper that, up to the end of the most current month.
MembersOnline or over the phone, or by downloading and If, by the end of the three months from when your cover
completing the Cancel your insurance form. If you reduce ceased, your balance is not sufficient to cover premiums
cover, your remaining TPD cover cannot be greater than payable up to this date, your cover will permanently cease
your death cover. from the end of the month in which your premiums were
If you have unit-based cover your cover can only be paid up to.
reduced by whole units. In this case, if you wish to then recommence your
insurance you will need to apply. Your ability to receive
Note additional cover may be subject to health assessment,
If your account has a low or nil balance and premiums insurance policy conditions and acceptance by the insurer,
have not been fully paid up to your cancellation date, and you may not be able to get cover.
further premium deductions may occur after your Important: Claims for death, terminal illness or TPD
cancellation date. occurring between the time your cover ceases due to
insufficient funds in your account and the time an amount
As an EmployeeSaver member with default cover, if you is received into your account within the three month
decide the cover is not right for you, and you cancel this period explained above, will not be payable unless, at the
cover within 60 days of us confirming that your default date of death, terminal illness or TPD, your account had
insurance has commenced, we will provide you a full sufficient funds to pay all premiums owing up to at least
refund of any premiums already paid. one day in that month.
If you have any additional cover, you are entitled to a If you meet all the reinstatement conditions within the
refund of premiums already paid for your additional cover three months reinstatement period but you are an inactive
if you cancel within the first 30 days of the date of our member at that time, your cover will not be reinstated until
letter confirming your cover. you are no longer an inactive member within that three
month period. If you become active outside the three
Where you receive a refund, your cover will be treated as if
months period, your cover will not be reinstated.
it never started. This means you will not be entitled to a
claim during the period of cover, prior to the refund. Inactivity
If you cancel your cover, any future request for additional We’ll write to you if your account has not received any
cover will be subject to health assessment, insurance contributions after 9, 12 and 15 months to help you decide
policy conditions and acceptance by the insurer, and you if you wish to continue with your cover.
may not be able to get cover. If your cover ceases because you have been an inactive
member (you have not received a contribution or rollover
Reinstatement of cover
into your FutureSaver account) for a period of 16
We will provide you with the ability to reinstate your continuous months, you will have three months from
insurance cover within three months of your cover ceasing the date your cover ceased to reinstate your cover.
under the following circumstances: To reinstate your cover, you need to complete the
Insufficient funds Reinstate your insurance cover form available from
vicsuper.com.au/forms. In this request you must also elect
It is your responsibility to review your insurance to make
to be exempted from inactivity requirements and
sure you have sufficient funds in your account to pay your
exempted from the PMIF requirements.
monthly insurance premiums. We will write to you when
your account is at risk of losing cover due to insufficient Where your cover is reinstated, it will recommence on the
funds. day we receive your completed form. You will not be
covered for the period between the cover end date and
If your cover ceases because there are insufficient funds in
the date cover is reinstated.
your account to pay premiums, you have three months
from the date your cover ceased to contribute amounts If you do not apply to reinstate your cover within three
sufficient to pay all outstanding premiums, allowing you to months of your cover ceasing and would like to reobtain
continue your cover. insurance, you will need to apply for additional cover. Your
ability to receive additional cover may be subject to health
assessment, insurance policy conditions and acceptance
by the insurer, and you may not be able to get cover.
19Death and
TPD cover
Death and TPD cover is intended to provide a lump sum benefit to you if you become
totally and permanently disabled, or to your family if you pass away.
How much does my insurance cost?
Your death and TPD insurance premiums are calculated
based on four factors:
• Your age
• Amount of cover
PREMIUM CALCULATORS
• Occupation category
Did you know we have premium
• Unit-based or fixed cover
calculators available on our website?
Death and TPD premium calculation
Visit vicsuper.com.au/calculators
To calculate your premium, you will need your age, your
occupation category and the amount of cover required.
20Unit-based cover
With unit-based cover, the cost of each unit is the same regardless of age. However, the dollar value of cover of each unit
is linked with your age and will gradually decrease.
The cost and value of death only and death and TPD cover can be found below and on page 23.
Unit-based premium tables
Unitised cover – Premium per unit per week
General White Collar Professional Own Occupation*
Death Death & Death Death & Death Death & Death Death &
TPD TPD TPD TPD
Unit cost $0.34 $1.17 $0.28 $0.94 $0.20 $0.66 $0.34 $1.31
* applicable to own occupation cover granted prior to 1 July 2014
The premiums shown have been rounded to two decimal places for simplicity. If the quoted premiums increase, we will notify you in writing at least
30 days’ in advance before any increase is introduced.
Table 1: Unit-based death only and death and TPD cover.
Age Cover per Age Cover per Age Cover per Age Cover per
unit unit unit unit
14 – 35 $51,500 44 $29,000 53 $8,000 62 $2,500
36 $46,000 45 $24,000 54 $7,000 63 $2,000
37 $46,000 46 $20,000 55 $6,200 64 $1,750
38 $45,500 47 $17,000 56 $5,500 65 $1,500
39 $45,500 48 $15,000 57 $4,750 66 $1,400
40 $40,500 49 $13,000 58 $4,250 67 $1,350
41 $40,500 50 $11,000 59 $3,750 68 $1,250
42 $40,000 51 $10,000 60 $3,500 69 $1,150
43 $35,000 52 $9,000 61 $3,000 70 $0
To calculate your weekly premium:
Step 1
Refer to your occupation category in the unit based premium table.
Step 2
Multiply the Death or Death & TPD premium for your relevant occupation category by the number of units held to
determine your weekly premium.
Calculating Death and TPD example
Let’s have a look at Lauren’s insurance cover.
Here’s a quick snapshot of Lauren who;
• is 28 years of age
• works in an office
• qualifies for the white-collar occupation category, and
• would like to apply for the 8 units of death and TPD cover
At 28 years of age, each unit of death and TPD provides Lauren with $51,500 of
cover. By taking out 8 units, she will have total death and TPD cover of $412,000.
The cost of her cover is:
8 units x $0.94 per week.
= $7.52 per week
21Fixed cover
Fixed cover is provided in the form of a dollar amount.
Unlike unit-based cover, the level of cover remains the
same regardless of age however, the premium gradually
increases with your age.
The cost of fixed death only and death and TPD cover can
be found on the following page.
Converting cover between unit-based and fixed
(and vice versa)
If you have unit-based cover and wish to convert to fixed
cover, which locks in that cover amount, you can do this
without having to provide any evidence of health.
You can also apply to have fixed cover converted to
unit-based cover. If you make this conversion, you will be
provided with an equivalent number of units, rounded up
to the next whole unit. Pre-existing conditions rules may
apply to your cover. Please refer to the pre-existing
conditions section on page 16 for details.
Unit-based to Fixed cover example
Paul is 28 years of age and qualifies for the general
occupation category. He currently has six units of
unit-based death and TPD cover, but has decided he
would like to convert this to fixed cover, as he is
worried about his insurance dropping in value as he
gets older.
Each unit of Paul’s cover is worth $51,500 and
each unit costs $1.17 per week. This equates to
$309,000 of cover and a premium of approximately
$366 per year.
How much will Paul pay by fixing his cover?
Paul is able to fix his six units of death and TPD cover,
which will remain as $309,000, rather than reducing
in value over time as unit-based cover would.
For every $1,000 of cover, he will pay $0.66 per year.
($309,000 / 1000) x $0.66
= $204 per year.
It’s important that Paul regularly reviews his insurance
cover in the future as fixed cover premiums increase
as he gets older.
22Death and TPD rates
Table 2: Fixed cover death only and death and TPD cover. Premium per $1,000 sum insured per annum.
General White Collar Professional Own occupation*
Death Death & TPD Death Death & TPD Death Death & TPD Death Death & TPD
Age
14 $0.48 $0.78 $0.39 $0.62 $0.27 $0.44 $0.40 $0.83
15 $0.48 $0.78 $0.39 $0.62 $0.27 $0.44 $0.40 $0.83
16 $0.56 $0.89 $0.45 $0.71 $0.32 $0.50 $0.46 $0.96
17 $0.60 $0.95 $0.48 $0.76 $0.34 $0.53 $0.48 $1.02
18 $0.67 $1.06 $0.52 $0.86 $0.36 $0.60 $0.51 $1.14
19 $0.65 $1.04 $0.52 $0.84 $0.36 $0.58 $0.51 $1.12
20 $0.58 $0.93 $0.46 $0.75 $0.33 $0.52 $0.47 $1.00
21 $0.56 $0.89 $0.45 $0.71 $0.32 $0.50 $0.46 $0.96
22 $0.51 $0.81 $0.41 $0.65 $0.29 $0.46 $0.42 $0.87
23 $0.49 $0.80 $0.39 $0.64 $0.28 $0.45 $0.41 $0.83
24 $0.46 $0.74 $0.37 $0.59 $0.26 $0.41 $0.37 $0.80
25 $0.44 $0.68 $0.34 $0.55 $0.24 $0.39 $0.34 $0.75
26 $0.41 $0.65 $0.33 $0.52 $0.23 $0.36 $0.33 $0.70
27 $0.42 $0.66 $0.33 $0.54 $0.23 $0.38 $0.33 $0.73
28 $0.42 $0.66 $0.34 $0.53 $0.24 $0.37 $0.34 $0.72
29 $0.44 $0.68 $0.34 $0.55 $0.24 $0.39 $0.34 $0.75
30 $0.46 $0.74 $0.36 $0.60 $0.25 $0.42 $0.35 $0.80
31 $0.46 $0.74 $0.37 $0.59 $0.26 $0.41 $0.38 $0.82
32 $0.51 $0.81 $0.41 $0.65 $0.29 $0.46 $0.42 $0.90
33 $0.56 $0.89 $0.45 $0.71 $0.32 $0.50 $0.46 $0.98
34 $0.60 $0.95 $0.48 $0.76 $0.34 $0.53 $0.48 $1.04
35 $0.68 $1.08 $0.53 $0.87 $0.37 $0.61 $0.53 $1.21
36 $0.74 $1.22 $0.57 $0.99 $0.40 $0.70 $0.56 $1.34
37 $0.81 $1.33 $0.64 $1.06 $0.45 $0.75 $0.63 $1.45
38 $0.92 $1.50 $0.71 $1.22 $0.50 $0.85 $0.71 $1.68
39 $0.97 $1.71 $0.77 $1.37 $0.54 $0.97 $0.76 $1.89
40 $1.08 $1.92 $0.86 $1.55 $0.60 $1.08 $0.85 $2.14
41 $1.15 $2.16 $0.92 $1.73 $0.65 $1.22 $0.93 $2.39
42 $1.25 $2.38 $1.00 $1.91 $0.70 $1.34 $1.00 $2.63
43 $1.31 $2.61 $1.05 $2.09 $0.74 $1.46 $1.04 $2.89
44 $1.43 $2.89 $1.15 $2.31 $0.80 $1.62 $1.14 $3.18
45 $1.53 $3.23 $1.22 $2.58 $0.86 $1.81 $1.24 $3.56
46 $1.64 $3.64 $1.31 $2.91 $0.92 $2.04 $1.34 $3.99
47 $1.80 $4.12 $1.44 $3.30 $1.01 $2.31 $1.46 $4.54
48 $2.01 $4.67 $1.61 $3.74 $1.13 $2.62 $1.63 $5.15
49 $2.22 $5.34 $1.77 $4.28 $1.24 $2.99 $1.80 $5.91
50 $2.44 $6.09 $1.95 $4.87 $1.37 $3.41 $2.01 $6.71
51 $2.69 $6.89 $2.16 $5.51 $1.51 $3.86 $2.22 $7.62
52 $2.93 $7.71 $2.34 $6.17 $1.64 $4.32 $2.42 $8.49
53 $3.16 $8.54 $2.53 $6.84 $1.77 $4.79 $2.61 $9.44
54 $3.45 $9.56 $2.76 $7.65 $1.94 $5.35 $2.86 $10.55
55 $3.73 $10.91 $2.99 $8.73 $2.09 $6.11 $3.10 $12.04
56 $4.07 $12.39 $3.26 $9.91 $2.28 $6.94 $3.40 $13.69
57 $4.39 $14.05 $3.51 $11.24 $2.46 $7.87 $3.69 $15.48
58 $4.77 $15.88 $3.81 $12.71 $2.67 $8.90 $4.03 $17.54
59 $5.16 $18.12 $4.13 $14.50 $2.89 $10.15 $4.38 $19.99
60 $5.91 $20.75 $4.73 $16.60 $3.31 $11.62 $5.01 $22.89
61 $6.78 $23.85 $5.42 $19.08 $3.80 $13.36 $5.75 $26.33
62 $7.75 $27.57 $6.20 $22.05 $4.34 $15.44 $6.60 $30.45
63 $8.89 $31.95 $7.12 $25.56 $4.98 $17.90 $7.56 $35.24
64 $10.16 $36.98 $8.13 $29.59 $5.69 $20.71 $8.67 $40.83
65 $11.44 $42.26 $9.16 $33.81 $6.41 $23.67 $9.75 $46.63
66 $12.83 $48.09 $10.26 $38.47 $7.19 $26.93 $10.92 $53.05
67 $14.36 $54.65 $11.49 $43.72 $8.04 $30.61 $12.21 $60.26
68 $15.95 $61.90 $12.76 $49.52 $8.94 $34.67 $13.59 $68.21
69 $17.68 $69.93 $14.14 $55.94 $9.90 $39.16 $15.05 $77.04
* applicable to own occupation cover granted prior to 1 July 2014
The premiums shown have been rounded to two decimal places for simplicity. If the quoted premiums increase, we will notify you in writing at
least 30 days’ in advance before any increase is introduced.
23You can also read
