SignatureSuper Insurance Guide Fact Sheet- MLC - Issued May - Super Advice Australia
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Issued ₁₅ May ₂₀₂₀ SignatureSuper® Insurance Guide Fact Sheet – MLC AMP Corporate Super ® Registered trademark of AMP Limited ABN 49 079 354 519.
The information in this document forms part of the product disclosure statement for SignatureSuper dated 15 May 2020 (PDS). To understand how SignatureSuper works, read the PDS, fact sheets and your plan summary. Contents Insurance by MLC Limited 3 Details of insurance cover 13 Other insurance information 20 Insurance premiums 26 Understanding superannuation terms 29 This is a fact sheet for SignatureSuper. The fact sheets and plan summary are important documents. You should read them with the product disclosure statement to understand how SignatureSuper works. Information in this document may change from time to time. We may update information which is not materially adverse to you and make it available at amp.com.au/pdsupdates. A paper copy of the update can also be obtained (at no charge) by calling us (details at the end of this document) or from your financial adviser. The information provided in this document is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. If you would like advice on your insurance cover in this super product, contributions to your account or investment options, you can call us on 1300 769 736. A fee will not be charged for this once-off intrafund advice. If you would like to obtain other financial advice, ongoing financial advice or other information about your account, you should speak to a financial adviser. SignatureSuper is part of the Super Directions Fund ABN 78 421 957 449. N.M. Superannuation Proprietary Limited (NM Super) ABN 31 008 428 322, AFSL No. 234654, RSE Licence No. L0002523 is the trustee and is referred to as NM Super, trustee, we or us in this document. No other company in the AMP group of companies or any of the investment managers of the investment options or the Insurer named in this document: – is responsible for any statements or representations made in this document – guarantees the performance of NM Super’s obligations to members, or assumes any liability to members in connection with this product. Except as expressly disclosed in the PDS or a fact sheet: – investments in the investment options aren't deposits or liabilities of NM Super, AMP Bank Limited ABN 15 081 596 009 (AMP Bank), any other member of the AMP group or any of the investment managers – no person guarantees the performance of this super product or any of the investment options, any particular rate of return or the repayment of capital. The trustee may enter into financial or other transactions with related bodies corporate in relation to this product. That related body corporate may be entitled to earn fees, profits, reimbursements or expenses or other benefits in relation to any such appointment or transaction and to retain them for its own account. SignatureSuper is managed and administered in accordance with the PDS, fact sheets and your plan summary. We may change the way SignatureSuper is managed and administered at any time with, in the case of an increase in fees, at least 30 days’ notice. Otherwise, a notice will be provided before or as soon as practicable after the change occurs. This offer is available only to persons receiving (including electronically) the PDS, plan summary and fact sheets within Australia. Issued by NM Super, the trustee of the Super Directions Fund. You will receive a plan summary with your welcome letter, which describes the benefits and features specific to your membership of SignatureSuper. Some employers may have a tailored MySuper arrangement. Your plan summary will contain information on these arrangements that are specific to your plan. It may also note that some benefits and features in the fact sheets may not apply to you. You or your family member may also request a copy by contacting the Customer Service centre on 1300 366 019.
Section : ₁
Insurance by
MLC Limited
In this section you will find information about how insurance works in your plan:
Types of cover available and eligibility
Employee members' insurance cover
Default cover and automatic acceptance limits (AAL), when does cover
start and stop, applying for additional cover
Family members' insurance coverWelcome to SignatureSuper, a product from AMP Corporate Super. It's designed to provide you with comprehensive
super benefits for your retirement and insurance protection for you and your family’s peace of mind.
Advantages of insurance with SignatureSuper
Including insurance cover in your super account can be a tax-effective way of financially protecting you and your family
should you die or become disabled.
SignatureSuper has insurance cover designed for you as an employee and negotiated by your employer (or Association
where applicable) while also offering advantages of cover for your family. It means you can:
– have insurance premiums deducted from your SignatureSuper account (if not paid for by your SignatureSuper
employer)
– apply for additional insurance cover to meet your personal needs
– have Interim Accident cover while you wait for any applications for cover to be assessed (where available for your
plan)
– view your current insurance cover online at any time by logging in to your account at amp.com.au, and
– access your insurance on the move with the AMP mobile app. Download this today from the Apple App Store
(Apple)1 or Google PlayTM Store (AndroidTM)2.
Employee members may also have the advantage of:
– corporate insurance premium rates which are generally cheaper than personal premium rates, and
– not having to provide evidence of health, through automatic acceptance limits (AAL) where eligible.
You should talk to a financial adviser to consider your insurance needs and the best way to meet them.
What insurance cover is available
The type and amount of insurance cover we provide will depend on a range of factors including, for employee members,
the category of membership you join in your employer’s plan and your employment status.
Family members may be able to apply for insurance cover under SignatureSuper, however Temporary Disability cover
will not be available to them.
Super laws will also impact whether insurance can be offered and kept in your account. See the Eligibility for
insurance section for more detail.
Your SignatureSuper employer selects what cover to offer in the plan and, where it has been agreed to with the Insurer
and us, your SignatureSuper plan may offer you:
– Death cover (which may include Terminal Illness Benefit, depending on your employer plan's arrangements)
– Death and Total and Permanent Disablement (TPD) cover
– Death and Temporary Disability cover, or
– Death and TPD and Temporary Disability cover.
Your member statements and the insurer's policy document may refer to Group Salary Continuance (GSC), Salary
Continuance Insurance (SCI), Temporary Salary Continuance (TSC) or Group Income Protection (GIP). For the purpose
of this fact sheet we will refer to these as Temporary Disability cover.
See the details of cover section for further information on each type of cover.
Please refer to your plan summary or your latest member statement to confirm the insurance cover that applies to
you.
1 Apple is a trademark of Apple Inc.
2 Google Play and Android are trademarks of Google Inc.
4What impact does insurance have on your super?
Where you have insurance cover through your super account, it is important to be aware that any insurance premiums
that are funded from your account will reduce your super balance over time. While insurance is an important benefit
to many members, the trustee generally considers that, where premiums for default insurance cover exceed 1% of your
salary, this may inappropriately erode your super balance. Nevertheless, you should regularly review your insurance,
including whether insurance costs are appropriate for you, and consider discussing your insurance needs with a financial
adviser.
You can log in to My AMP at any time to check your current arrangements and visit amp.com.au/whyinsurance to find
out more about what insurance is right for you.
Your Insurer
Where stated in your plan summary, MLC Limited ABN 90 000 000 402 (the Insurer) provides insurance cover for your
SignatureSuper plan.
Insurer consent
MLC Limited:
– has given and not withdrawn its consent in relation to being named in this document, and
– has not issued or caused the issue of this document.
Policy documents
The insurance cover in your SignatureSuper plan is provided under policies of insurance issued to the trustee by the
Insurer. In all cases, insurance cover for a member is subject to the terms and conditions of the insurance policies issued
by the insurer.
In the event of any inconsistency between the terms and conditions of the insurance policies and this document, the
PDS or your plan summary, the terms and conditions of the insurance policies prevail.
Eligibility for Insurance
General eligibility
Generally you are eligible for cover if you satisfy all of the following:
– You meet the eligibility conditions agreed between the trustee and the insurer.
– You are employed by a SignatureSuper employer and/or a member of the SignatureSuper plan.
– You are an Australian resident at the time you are accepted for cover (unless otherwise agreed to in writing by the
Insurer).
For TPD and Temporary Disability cover you must be engaged in permanent employment or fixed term employment
(see insurance definitions) and be working a minimum of 15 hours per week.
Permanent part-time employees working less than 15 hours per week and casual employees may be eligible for limited
cover.
The limited cover that may be offered is as follows:
– Permanent part-time employees working less than 15 hours per week are eligible for Death and TPD cover, however
TPD cover is provided under the TPD definition of activities of daily living (see insurance definitions).
– Casual employees may be covered for Death only cover.
– Seasonal or contract employees who are not fixed term employees are not eligible for any insurance cover.
– Certain occupations may not be eligible for TPD or any cover.
5Super law eligibility
In addition to meeting the General eligibility criteria above, under super laws, you still may not be eligible for insurance
if any of the following applies to you:
– you are aged under 25
– since opening the account, your balance hasn't reached $6,000
– your account hasn't received a contribution or rollover for 16 months, and
unless you meet any of the following criteria:
– you tell us you'd like default insurance (if you tell us within 120 days of joining your employer, you won't
need to complete a full application or provide information about your health. However, after 120 days, you
will need to complete a full application and provide information about your health.)
– your employer funds the full cost of insurance and notifies us of this, or
– we've determined that you're employed in a dangerous occupation and have notified you that you'll be
provided cover on this basis.
Your insurance cover will be automatically provided once you are aged 25 or over and have an account balance of $6000
or more (provided that you also meet the other eligibility criteria outlined in this fact sheet).
The table below explains how to elect to have insurance, and if you don’t elect, how you will have it applied when you
meet the eligibility criteria. Also included is what you need to know about the terms that will apply to your insurance
cover.
Will you have insurance What you need to do How you will get When your cover will commence What you need to know
automatically applied? if you’d like your insurance
insurance
If you are under age 25 Elect to have You will have your Date election made (subject to Limited cover will apply
and/or you have a balance insurance within 120 default insurance enough funds available to pay until you have been
under $6,000, we are not days of joining your cover applied your premiums). in active
able to automatically give employer. automatically(i). employment for 30
consecutive days.
you insurance.
We also can't provide you Elect to have You will need to Date your application is Cover will be subject to
insurance if your account insurance 121 days apply for insurance accepted. the terms and
hasn't received a or more after joining and answer health conditions the Insurer
contribution or rollover in your employer. and lifestyle advises when you accept
16 months. questions. the offer.
When you are aged 25 or Nothing, your Your insurance will Date you become eligible (age Limited cover will apply
over and you have a insurance will be be automatically 25 and balance over $6,000) if until you have been
balance of $6,000 or more, automatically applied(i). an SG contribution has been in active
we will automatically give applied. received within 120 of you employment for 30
consecutive days.
you insurance. becoming eligible. Otherwise the
However, you will not be date an SG contribution is
eligible if your account received after you become
hasn't received a eligible. Also subject to enough
contribution or rollover in funds available to pay your
16 months. premiums.
You won’t be eligible if your
account hasn't received a
contribution or rollover in 16
months.
(i) Your insurance will be automatically applied, subject to eligibility criteria set out in the eligibility for insurance section and if
you haven’t previously told us you don’t want your insurance.
6Employee members’ insurance cover
Standard insurance cover
Standard cover refers to the way Death and TPD cover amounts are calculated and usually consists of a formula. Your
SignatureSuper employer has decided on the standard cover formula that applies to your membership category and
this is shown in your plan summary.
The value of your standard cover is calculated:
– when you join your employer plan
– at your most recent annual review
– when you change your multiple of the standard cover
– on your death, or
– on the last day of work if you are making a TPD claim.
Default insurance cover
Where the insurer has agreed to provide default insurance cover to members of your SignatureSuper employer plan,
you will be automatically provided with default insurance cover, subject to you meeting the necessary eligibility criteria.
See the Eligibility for insurance section for further information.
Even though you may not be eligible for cover from the date you joined your employer, once you do become eligible,
the default insurance will be applied automatically. For example, if you are aged 25 or over and start with a nil opening
super balance and 8 months later, you reach a balance of at least $6,000, the default cover will be applied automatically
to your account at that 8-month mark, assuming all other eligibility criteria are met.
If you may not otherwise be eligible to have default cover under super law but you tell us within 120 days of your
employer start date that you'd like insurance, we can provide cover on your account without you needing to provide
information about your health.
This automatic cover will be provided up to the amount of the automatic acceptance limit (AAL). For more information,
please see the automatic acceptance limit (AAL) section. Where the amount of cover exceeds the AAL, acceptance by
the insurer will be required.
Default insurance cover amount is generally equal to, or a multiple of, the standard cover formula for Death and TPD and
is selected by your SignatureSuper employer. Your employer may also offer default Temporary Disability cover. The
amount of default insurance cover that applies to you in your membership category is shown in your plan summary.
Please note: If cover in your SignatureSuper employer plan has transferred from another insurer, then you should
read the takeover terms for insurance section.
7How standard and default cover are calculated
Example
John is an employee member of the XYZ plan. John has a salary of $50,000. The standard cover formula selected
by the SignatureSuper employer for the XYZ Plan is three times salary. The default cover multiple selected by the
SignatureSuper employer for the XYZ plan is two times the standard cover.
Standard cover = $150,000 (ie 3 x $50,000).
Default cover = $300,000 (ie 2 x $150,000).
John’s insurance cover will be equal to the default cover of $300,000.
Please note: The above example is an illustration only and is based on the factors given. The example should not be
taken as the actual amount of standard and default cover you will receive.
Will you need to provide details of health?
If you may not otherwise be eligible to have default cover under super law but you tell us within 120 days of your
employer start date that you'd like insurance, we can provide cover on your account without you needing to provide
information about your health.
You will not need to provide information about your health if:
– An AAL applies to your SignatureSuper plan (or membership category), and
– The total cover required does not exceed the AAL for your plan (or membership category).
If you do not meet all of these conditions, you will need to apply for cover and provide details of your health. The insurer
will consider your medical history, your likely future good health, your occupation, lifestyle and family history before
deciding whether to accept your application.
Depending on the evidence supplied, insurance cover may be accepted or refused, or special limits, conditions or
premium rates may be imposed.
What happens if your salary changes
If your insurance cover is based on your salary then updates to your salary could change your cover amounts. Your plan
summary will state when these updates will take effect. It will occur either on your plan's next annual review date or
at intervals between annual reviews. If your cover is not recalculated at intervals between annual reviews then your
cover will not change (even if your salary changes) until the next annual review.
If your cover does increase when it is recalculated because of a salary increase and still remains below your plan's AAL,
no underwriting will be required. Where your salary increase results in your cover exceeding your plan’s AAL then you
will be required to be underwritten by providing information about your health and circumstances.
8Can you change the default cover?
Yes, you can opt out of cover altogether, or if you wish, you may decrease your units of cover or cancel any default TPD
cover simply by writing to the trustee. TPD cover cannot be greater than your Death cover nor can you have TPD only
cover.
If you need to change your insurance cover please contact us. Contact details are provided on the back page of this
fact sheet.
Minimum Death cover for employee members
If MLC has agreed to provide insurance for your plan and providing you meet the insurance eligibility requirements,
you'll have Death cover according to the default arrangements for your plan, except where these default arrangements
do not meet the minimum government requirements set out in the table below. If this is the case, your Death cover
will be equal to the corresponding amount in the below table depending on your age. AMP will continue to monitor
your Death insurance to ensure your cover does not fall below the minimum.
This minimum will only apply if you are an employee member and will not apply if you have opted to cancel or reduce
your cover. Any change to the amount of your insured over may also affect your insurance premiums.
The amount of your insurance cover is shown on your insurance confirmation letter or your latest member statement.
Age range Minimum ($)
20–34 50,000
35–39 35,000
40–44 20,000
45–49 14,000
50–55 7,000
56 and over Nil
Additional insurance cover
You may be able to apply for cover or apply for an increase to your cover if:
– the cover required by you exceeds either the default cover amounts, or the AAL for your plan (or membership
category), or
– you do not meet all the eligibility conditions for obtaining AAL cover or your plan (or membership category) does
not offer an AAL.
Where an AAL applies, any cover automatically provided to you on joining your SignatureSuper employer plan will be
limited to the AAL. In order to obtain cover above or outside the AAL, you will need to apply to the insurer and provide
the information and evidence that they require, such as evidence about your health. Any cover above the AAL will
commence once your application is accepted by the insurer.
To see what cover is available to you, including options to apply for additional cover, check your plan summary, your
member statement or call AMP Corporate Super Customer Service (contact details on back page).
How much insurance cover do you need?
The level of insurance cover you need will depend upon your own personal circumstances and your need to provide for
your family and/or other beneficiaries.
9How do you apply for additional cover?
Where additional cover is available, simply complete the applicable additional insurance cover form available by calling
us (see contact details on the back cover). You can apply at any time. You need to be either:
– at work (see insurance definitions),actively performing your normal duties and work hours, or
– on leave for reasons other than illness or injury.
We will advise you in writing if you are required to provide evidence of health and circumstances.
When will your additional cover commence?
If your application is accepted, we will write to you to confirm the increase in cover and the premium that will apply.
Additional cover will commence from the date the insurer accepts your application. Until then your current level of
cover will apply.
While your completed application is being assessed you may have Interim Accident cover if it has been agreed for your
plan.
Commencing cover - automatic acceptance limit (AAL)
The insurer can generally provide an AAL for employee members up to certain limits. Please see your plan summary for
any AAL which applies to you.
This means that even if you can’t get cover under a personal insurance policy because of your health or your leisure
activities, you may still be able to get cover under your SignatureSuper plan without having to provide information
about your health.
The insurer will generally provide automatic insurance cover, without evidence of health, up to the AAL, if the following
conditions are met:
– your plan (or relevant membership category) must have been accepted for an AAL
– you must be an employee of the SignatureSuper employer, and
– you must join the plan (or category) when first meeting General eligibility requirements (see Eligibility for insurance
section).
Your SignatureSuper employer must certify these things when they tell us you are joining the plan (or category). If this
certification is incorrect, the insurer may have the right to void the insurance cover and refuse to pay any insured
amount.
If you don't meet the above criteria, you'll be asked for information about your health before cover can be provided.
Your cover may require underwriting where your salary/sum insured increases by more than 30% in any 12 month
period. Any increase in excess of 30% may be subject to underwriting terms determined by the insurer.
What if an AAL doesn’t apply?
If your plan doesn't have an AAL, or you do not qualify for the AAL, you will need to apply for cover and provide evidence
of insurability including details of your health and circumstances.
Depending on the evidence supplied, insurance cover may be refused or accepted subject to conditions, or accepted
with special limits, or premium rate loadings imposed.
While you are waiting for your application to be assessed you may have Interim Accident cover (see Interim Accident
cover section).
10When does insurance cover start and cease?
Cover (if applicable) starts from the date you joined the employer or the date you met eligibility conditions. See the
Eligibility for insurance section for further information.
When we receive a contribution we will deduct the costs of your cover calculated from the date it started. If there is
insufficient funds in your account to pay your insurance premiums, we may cancel your cover (but only after we have
advised you). A claim for benefits will not be considered if your cover is cancelled as a consequence of not receiving an
employer contribution.
Your cover generally stops in the plan when:
– 60 days have passed since the date you cease to be an employee with your SignatureSuper employer
– you cease to be a member of the SignatureSuper employer plan
– you reach the maximum benefit expiry age for your SignatureSuper employer plan
– you reach the expiry age under the insurance policy:
– age 65 for Death and TPD insurance cover, and
– age 65 for Temporary Disability cover
– you commence a continuation option
– you die
– you have been paid a TPD claim
– the date you have been paid a terminal illness benefit equal to the insured death or TPD amount
– 60 days after premium payments cease in respect of you or there isn't enough money in your account to pay them
– you tell us you want to cancel your cover (upon receipt of your written request)
– the day before you commence service with the armed forces of any country (excluding Australian Army Reserves
not deployed overseas)
– you are on unpaid leave (including parental leave) for more than a written agreed period and the insurer has not
agreed to provide insurance cover beyond that period
– if no contributions or rollovers have been received into your account for a period of 16 months, we are required to
cancel your insurance, unless you have told us in writing that you want to keep your insurance. You can make an
insurance election online at amp.com.au/insurancecancellation.
– If you had insurance because, your employer funded the full cost of insurance and notified us of this and then the
employer ceases to fund your insurance - if you are under age 25, or have a balance below $6,000 and you have
not elected to have insurance, then we are required to cancel your insurance. You can make and election online at
amp.com.au/whyinsurance
– If we've determined that you're employed in a dangerous occupation and have notified you that you'll be provided
cover on this basis and you change occupation (to one which is not classed as dangerous) - if you are under age
25, or have a balance below $6,000 and you have not elected to have insurance, then we are required to cancel
your insurance. You can make and election online at amp.com.au/whyinsurance, or
– the date the SignatureSuper employer plan terminates or the insurance policy is terminated or cancelled, which
ever occurs first.
Your plan summary will tell you when your cover will stop.
Default cover (Death only or Death and TPD) will also terminate for you on the date sixty (60) days after one of the
following are satisfied:
– you cease to continue to accrue benefit in the SignatureSuper employer plan, except as a result of a contribution
holiday, or
– your Employer ceases to contribute to the SignatureSuper employer plan on your behalf, except due to the deferral
of contributions by the Employer.
See leaving the plan in your plan summary and member guide fact sheet for details of insurance when you leave.
Reinstating cover cancelled due to inactivity
If your insurance is cancelled as a result of inactivity - no contributions or rollovers being received into your account
for a continuous period of 16 months, you can generally reinstate your cover if you apply within 60 days of cover being
cancelled. Your cover will not resume until we confirm acceptance in writing. Contact us for further information.
11Family members' insurance cover
If the employer for your SignatureSuper plan (in agreement with the trustee and the insurer) has agreed to make
insurance cover available for your category of membership, family members may be able to apply for cover at any time.
There may be some instances where family member cover is limited to a spouse only. Your plan summary details the
family member insurance cover available, if any.
All terms, conditions and definitions relating to family member insurance cover are subject to the insurance policy for
your SignatureSuper plan.
If your application for cover is accepted, we will write to you to confirm your cover and the premium rate that will apply.
Your cover will commence from the date the insurer accepts your application. As part of your application, you'll be asked
to elect to have and keep insurance in your super account, even if you may otherwise be ineligible for insurance under
super laws. You can find out more information at amp.com.au/whyinsurance.
How to apply for family member insurance
If offered, you can apply for insurance at the time you apply to become a family member of the plan or later (see your
member guide fact sheet).
If you are already a family member within an existing plan, you can apply to add insurance to your family member
account. Contact AMP Corporate Super Customer Service and we will send you the relevant application form.
12Section : ₂ Details of insurance cover In this section we discuss the following types of insurance cover in detail including maximum amounts of cover, when is a benefit paid and what happens and any exclusions applied by the insurer: Death cover Including Terminal Illness cover Total and Permanent Disability (TPD) cover Temporary Disability cover Information about how total or partial disability works, waiting and benefit periods, what offsets may be applied and when payments would stop. Interim Accident cover
Death cover
Death cover is a lump-sum amount, paid in addition to your super account balance if you die, while an insured member
of the plan, and may include Terminal Illness benefit depending on your employer plan's arrangement.
Maximum amount of Death cover
Death cover is limited to a maximum of $10 million.
What happens if you die?
Information on how you can nominate a beneficiary and how death benefits are paid is available in the section
nominating your beneficiaries in the member guide fact sheet. Members under age 18 are not able to nominate
beneficiaries and therefore ‘no nomination’ provisions will apply.
If you die while you are an insured member of the SignatureSuper plan, your Death cover will be paid (in addition to
your super account balance) as part of your death benefit.
What is the Terminal Illness benefit and when is it paid?
The Terminal Illness benefit is an early payment of Death cover if you suffer a Terminal Illness (see insurance definitions).
The Terminal illness benefit paid is the lesser of the insured death cover or $3 million.
Under superannuation law, a member who is certified by two doctors (one who is a specialist in the field of the Insured
Member’s illness) as having a life expectancy of 24 months or less from the date of certification will be considered to
have met a Terminal Medical condition of release, and therefore will be able to withdraw their superannuation account
balance, irrespective of their age. Where members who have met a condition of release choose to withdraw their entire
full account balance, their superannuation account will be closed and any insurance cover that the member holds
through that account will be cancelled from the date of closure.
Before closing their account, Terminally Ill members should seek financial advice to ensure that they fully understand
the impact that this will have on their ability to claim against any insurance cover that they hold through their
superannuation account. In particular, members should consider that where their Death cover is cancelled as a result
of the closure of their superannuation account, their beneficiaries will not be able to claim against that insurance cover
in the unfortunate event that the member dies. Further, members should be aware that generally, Terminal Illness
insurance cover is automatically provided as part of Death cover (please refer to your plan summary to determine if
you are entitled to Terminal Illness cover). The amount of a Terminal Illness benefit will be limited to the lesser of the
Death cover sum insured and the maximum value of a Terminal Illness benefit allowed under the insurance policy
(please refer to your plan summary for the maximum Terminal Illness benefit payable for your plan).
If Terminal Illness cover is provided, the Insurer will generally only pay a Terminal Illness claim where two doctors (one
who is a specialist in the field of the Insured Member’s illness) have certified the member as having a life expectancy
of 12 months or less from the date of certification. This is less that the 24 month certification period which is required
under superannuation law for members to close their superannuation account. As a result, while Terminally Ill members
who under superannuation law are able to close their account 24 months before the expected date of death, they may
choose to leave their superannuation account open with sufficient funds to pay their ongoing insurance premiums.
By continuing to hold their insurance cover in their superannuation account, members may be entitled to a Terminal
Illness benefit payment once their life expectancy is 12 months or less.
If we pay this benefit, the maximum amount we will pay is $3 million. If your Death cover is more than this amount,
then we will pay any further Death cover when you die.
We reduce the Death cover and Total and Permanent Disablement cover by the amount of any Terminal Illness benefit
that is paid.
If your Death cover commenced prior to 1 July 2014 and you have continuously held Death cover since, you should
note that the trustee can only pay the Terminal Illness benefit in accordance with the super rules. These rules mean
there may be some instances where the trustee will not be able to pay a Terminal Illness benefit directly to you. The
insurer will pay it to your super account if you do not satisfy a terminal medical condition of release (see accessing
your super in the member guide fact sheet).
14Total and Permanent Disablement (TPD) cover
Total and Permanent Disablement cover is a lump sum amount paid if you become totally and permanently
disabled while you are insured for TPD with your SignatureSuper plan.
Your plan summary will advise which TPD definition applies to your SignatureSuper plan.
TPD cover is only available with Death cover.
For employee members: In most cases the TPD insurance arrangement for your plan will automatically make your
TPD cover reduce as you get older. But if this is not the case (e.g if your TPD cover is defined as a fixed dollar amount
or a fixed multiple of salary), and unless otherwise agreed, the TPD sum insured will automatically decrease by 10%
per annum from your 60th birthday or from the retirement age for your category of membership. Details will be
described in your plan summary.
Maximum amount of TPD cover
TPD cover is generally limited to a maximum of $3 million.
What happens if you become totally and permanently disabled?
If you have TPD cover and you become totally and permanently disabled (TPD), the insurer will pay a lump sum amount
to your SignatureSuper account which is paid to you in addition to your superannuation account balance.
If a TPD benefit is payable:
– the insurer will pay it to the trustee who will deposit it into your account if you qualify as being totally and
permanently disabled.
– payments of any temporary disablement benefit will generally stop. However, some SignatureSuper plans may
allow temporary disablement benefits to continue to be paid after a TPD benefit is paid. Your plan summary will
confirm if this is the case.
– your Death cover will cease.
If you are a defined benefit member, your TPD cover may form part of an overall formula benefit.
Please refer to the section on how to make a claim for further details.
Exclusions for Death and TPD cover
There are specific circumstances in which a benefit will not be payable.
Please refer to your plan summary for the specific exclusions which apply to your employer plan.
Temporary Disability cover
Temporary Disability cover is an income replacement amount paid to you monthly if you meet the definition of totally
disabled (see insurance definitions).
The SignatureSuper employer has selected whether Temporary Disability cover applies to your membership category
and, if so, has also selected:
– the percentage of your income payable as Temporary Disability cover, and
– the benefit period (either up to 2 years or 5 years or up to age 65).
Temporary Disability cover is available in combination with Death only cover or Death and TPD cover, to permanent
employees regularly working 15 hours or more per week. Temporary Disability cover is not available to:
– casual and contract employees and seasonal employees
– non-executive directors, and
– family members and retained members.
Your plan summary will tell you if Temporary Disability cover applies to you and the details.
15What we pay
Temporary Disability cover provides a percentage of your income up to a maximum of 75% (excluding employer
superannuation contributions) for the applicable benefit payment period should you become unable to work because
of illness or injury. The benefit we pay is based on your insured level of income on the last day you were at work prior
to becoming totally disabled.
The Insurer will limit the payment of disability benefits in respect of you, including any increases in your monthly
benefit, to the applicable maximum monthly benefit as agreed in the policy.
Maximum amount of Temporary Disability cover
If you have temporary Disability cover, it is generally limited to:
– Up to 75% of the first $320,000 of salary, and
– Up to 50% of salary above that.
With an overall maximum insured amount of $30,000 monthly benefit including any superannuation contribution
cover (if applicable).
Please refer to your plan summary for the maximum Temporary Disability benefits payable for your plan.
Partial disability benefit
The partial disability benefit provides you with a portion of the Temporary Disability benefit if after a period of being
totally disabled you are partially disabled and return to work but earn less because of your illness or injury (see insurance
definitions).
The insurer will pay a partial disability benefit from the end of the waiting period for as long as the circumstances set
out below exist, subject to the policy terms and conditions and the maximum benefit period applicable to you if:
– you have resumed employment after a period of at least 14 consecutive days of total disability
– you continue to receive a reduced monthly income, and
– the reduction in monthly income is as a result of being unable to perform the important duties (see insurance
definitions) of your occupation.
The formula used for the calculation of the partial disability benefit is:
(A - B ) x C
A
Where:
A. Is your monthly earnings prior to becoming totally disabled (see insurance definitions).
B. Is your current monthly earnings while partially disabled (see insurance definitions).
C. Is the total Temporary Disability cover monthly benefit.
Escalation/indexation benefit
Your SignatureSuper employer may have arranged with the insurer for an escalation benefit.
If the insurer has been continuously paying you a monthly benefit for you for 12 months because you are suffering a
disability, the insurer will then increase the monthly benefit payable by the lower of the annual percentage increase
in the Consumer Price Index, and 5% or 7.5% (as selected by SignatureSuper). The insurer will increase the amount by
the same method again after each 12 month period as long as the insurer is still continuously paying a monthly benefit
because you are suffering a disability.
When the insurer stops payment to you, the monthly benefit will revert to the monthly benefit determined by the
original formula or as otherwise varied from time to time.
Bereavement benefit
If you die while in receipt of total disability or partial disability benefits, the insurer may pay a lump sum amount equal
to three times your monthly benefit from the date of your death.
16Rehabilitation expenses
While you are receiving total disability or partial disability benefits, the insurer may reimburse rehabilitation expenses,
such as the cost of a rehabilitation course or special equipment, to help you return to work.
The insurer must approve these rehabilitation expenses in writing before they are incurred. The rehabilitation must
be approved by your doctor.
Generally the insurer will pay rehabilitation expenses up to a maximum amount equal to 24 times your monthly benefit,
less any amount that can be claimed from other sources for those expenses (unless otherwise agreed in writing).
Recurrent disability
If your disability recurs within 6 months of your going back to work full-time, the insurer will treat the disability as a
continuation of the original disability. There is no new waiting period so you can claim as soon as the disability recurs.
The cause of the disability must be the same or related to the cause for the original claimable disability.
The policy must be in force when the disability recurs. The maximum benefit period will apply to the original disability
and each continuation of the original disability combined.
Superannuation Contribution cover
Super Contribution cover is an optional feature that your SignatureSuper employer may provide under your plan.
This option provides you with additional assurance that during a period of either temporary or partial disablement
super contributions will continue to be paid into your SignatureSuper account.
The maximum employer super contribution benefit that is available is 15% of the insured member’s monthly income.
The insurer will increase the amount of disability benefits otherwise payable to you by the percentage agreed between
the insurer and the trustee being either:
– your monthly income, for total disability or interim accident insurance cover, or
– your loss of income for partial disability benefits.
This additional payment is designed to cover the cost of any SignatureSuper employer super contributions payable by
your SignatureSuper employer to your SignatureSuper account.
The Super Contribution cover benefit will cease when you and/or the SignatureSuper employer would otherwise cease
to make contributions to the SignatureSuper plan in accordance with the terms of the trust deed for the fund and the
plan rules for the SignatureSuper plan or by law.
Your plan summary will have further details if this is applicable to you.
When will Temporary Disability payments cease?
The insurer will generally stop paying benefits for you at the earliest of the following events:
– you are no longer totally or partially disabled
– you are receiving partial disability benefits and are able to earn your full income again
– you die
– in the insurer’s opinion you become totally and permanently disabled (if applicable)
– you are no longer under the care of a Doctor
– your SignatureSuper employer or you fail to provide the insurer with requested information or other evidence
reasonably required to assess your claim
– you attain the maximum insurable age, as agreed by the insurer and the trustee, or
– the insurer has paid up to the maximum benefit period.
17Offsets
Payment of temporary disability benefits will be reduced by any other disability income which you may be entitled to
from other sources, whether that income was actually received or not. Other disability income may include:
– any other income derived as a result of disability from employment under any other insurance policy
– any benefit under any workers’ compensation or other similar compensation under state or federal legislation or
common law, but not including payments in respect of medical treatment, rehabilitation and permanent impairment
or permanent loss of use of a body part
– sick leave entitlements, and
– monies paid in respect of any claim for past or future economic loss arising from any claim by you for personal
injury.
but may exclude:
– income earned from investments, and
– any lump sum total and permanent disablement benefit.
Any income from other sources which is in the form of a lump sum or is commuted for a lump sum, will be treated as
a monthly equivalent of one sixtieth (1/60) of the lump sum over a period of sixty (60) months, to calculate the reduction.
See your plan summary for the specific offsets which apply to your employer plan.
When your entitlement to workers’ compensation payments is in dispute, the insurer will pay the full amount due on
a conditional basis until the dispute is resolved. If it turns out you are entitled to workers’ compensation payments you
must repay that part of representing the compensation proceeds.
The reduction will be sufficient to ensure that the amount the insurer pays, together with the aggregate of other
payments or entitlements, will not exceed the insured monthly percentage of your monthly income prior to the
occurrence of the disability. This does not affect the operation of the escalation benefit option paid and will not be
taken into account for the purposes of reducing disability benefits.
Exclusions for Temporary Disability cover
The insurer will not pay a temporary disability benefit when disablement is directly or indirectly caused by:
– any intentional self-inflicted injury or attempted suicide (whether you were sane or insane)
– normal and uncomplicated pregnancy or childbirth
– war or warlike operations
– service in the armed forces (excluding Australian Army Reservists not deployed overseas), or
– any other event or matter agreed between the trustee and the insurer.
Please refer to your plan summary for the specific exclusions which apply to your employer plan.
Interim Accident cover
The Insurer will provide Interim Accident cover to insured members or eligible persons nominated for membership
while their application for Death cover, TPD cover or Temporary Disability cover, as applicable, or an increase in cover
is being considered.
For Employee members who qualify for automatic acceptance and your default cover exceeds your plan’s AAL, you
will need to apply for that part of your cover. While your application is being assessed, the insurer will provide interim
accident cover for that part of your cover which exceeds your AAL.
When does this cover start?
The Interim Accident cover will start when the insurer receives a properly completed personal statement and declaration
of health in the form that it requires.
When will an Interim Accident benefit be paid?
The insurer will pay a benefit if, when applying to increase the amount of cover, you die, suffer TPD or total disability
as a result of an accidental injury, while you are covered by this Interim Accident cover, depending on the type cover
proposed. For further information please refer to the plan summary.
18How much cover?
The amount payable will be subject to:
– the relevant terms and conditions of the insurance policy for your SignatureSuper plan
– the level of cover for the category of the applicant
– a maximum limit of $1 million (or such other amount the insurer agrees) for death and TPD benefits for any one
applicant, and
– a maximum limit of $15,000 per month for any one applicant under Temporary Disability cover.
When does this cover stop?
Your Interim Accident cover will generally end on the earliest of the following:
– the date of the insurer’s acceptance of your cover or increase in the cover
– 90 days after the start of the Interim Accident cover for the member
– the date the insurer advises that a member’s application for cover or an insured member’s application for an
increase in cover, has not been accepted
– the date the member withdraws their application for cover or increase in the cover, or
– the date the member ceases to satisfy the eligibility terms for cover.
No interim accident benefit will be payable for:
– injury to a member caused by engaging in hazardous pastimes or sports that would not be covered under our
normal assessment guidelines
– injury occurring prior to the date of becoming an eligible person
– the cover applied for would have been declined under the insurer’s normal assessment guidelines, or
– the member lodges a claim for an event or condition that would have been excluded under the insurer’s normal
underwriting process.
The insurer will not pay more than one benefit under interim accident insurance for any one accident to any person.
19Section : ₃
Other insurance
information
This section outlines some general information for all members to help you
further understand insurance in your plan:
Takeover terms
Where the insurer has agreed to takeover cover previously provided by
another insurer
How to make a claim
Duty of disclosureInsurance and choice of fund
If Choice of Fund applies to you, you should consider your insurance arrangements carefully before choosing to direct
Superannuation Guarantee (SG) contributions away from SignatureSuper to another fund. SignatureSuper, with group
insurance arrangements, may provide more advantages for you than you could obtain through a personal insurance
policy. These include the possibility of lower premium rates and the possibility to obtain insurance cover without having
to provide medical evidence.
It is important to note that your insurance cover could be affected if you make a choice. If the amount of your insurance
cover is affected by your account balance and you decide to direct your future SG contributions away from SignatureSuper
to another fund the terms and conditions of your insurance arrangements under SignatureSuper may change. If this
is the case, we will write to you to inform you of any changes to your insurance arrangements.
You should talk to your financial adviser before making any decisions that could affect your insurance cover.
Takeover terms for insurance cover
Takeover terms for insurance may apply when your plan commences in SignatureSuper and the insurer agrees to take
over the cover previously provided to your former superannuation arrangement by another insurer. The insurer will
accept takeover terms if it receives and accepts all required information.
For transferring members, your Death cover in the plan will commence on the date your SignatureSuper plan commences.
Your TPD or Temporary Disability (if it applies) cover in the plan will also commence on the date your SignatureSuper
plan commences if you were:
– at work actively performing all the duties and work hours of your usual occupation with your SignatureSuper
employer on your last normal working day immediately before the date your SignatureSuper plan commenced, or
– on approved leave for reasons other than illness or injury on your last normal working day immediately before the
date your SignatureSuper plan commenced and you were:
– at work actively performing all the duties and work hours of your usual occupation with your SignatureSuper
employer on the day before your first day of leave, and
– not disabled due to an event (eg illness or injury) occurring before your SignatureSuper plan commenced
while on paid or unpaid leave.
Otherwise, your TPD or Temporary Disability cover in the plan will commence on the date your SignatureSuper plan
commenced but will only be limited cover (see insurance definitions).
However, this limitation will cease to apply if you:
– return to work and are actively performing all the duties and work hours of your usual occupation with your
SignatureSuper employer, free of any limitation due to injury or Illness, and
– are not entitled to or receiving income or benefits from any other source.
For transferring family members, if the above takeover terms are provided for a group of family members who already
have cover within a corporate superannuation fund, it will be agreed among the insurer, trustee and SignatureSuper
employer.
These terms for commencement of insurance cover are in accordance with the industry standard, referred to as the
Financial Services Council Guidance Note No. 11.00 Group Insurance Takeover Terms. A full copy of this document is
available from our customer service area (contact details are the back cover).
21Insurance cover during unpaid leave
If you are an employee member and your SignatureSuper employer approves a leave of absence or parental leave, the
insurer may continue to provide Death, TPD and Temporary Disability cover (if it applies) for up to 2 years, providing:
– you do not join the armed forces, (excluding Australian Army Reservists not deployed overseas)
– you remain a member of the plan, and
– for TSC cover, immediately prior to the commencement of the period of leave you were ‘At Work’ (unless otherwise
agreed to with your insurer).
We will continue to deduct premiums from your account during any period of leave of absence or parental leave. If you
do not want your insurance cover to continue during any period of leave of absence or parental leave contact us so we
can arrange this.
Please refer to your plan summary for the cover period and specific terms which applies to your employer plan.
Please note: If you cancel your insurance cover due to leave of absence or parental leave, or if your period of leave
continues for more than 2 years, you will need to provide evidence of health to the insurer. If the insured amount
is reduced to nil for a period of time, and subsequently reinstated then Underwriting Terms apply in respect of the
total amount of cover and any subsequent increases in cover.
Reducing or cancelling cover?
For employee members, having insurance cover as part of your superannuation plan is generally cheaper than having
the same cover under a personal insurance policy.
If you don‘t want to take advantage of this and you‘d prefer to reduce or cancel any of the cover provided by your
SignatureSuper plan, you can simply write to us and tell us what cover you want to reduce or cancel.
Your SignatureSuper employer may require a minimum level of insurance cover to be provided.
We suggest that you consult your financial adviser before deciding to cancel your insurance cover.
22What happens when you leave the SignatureSuper employer?
Extended cover
For Death, TPD and Temporary Disability cover if you leave your SignatureSuper employer the insurer will extend your
cover for 60 days after you no longer meet eligibility conditions or you cease to be employed by the SignatureSuper
employer. Please see When does the insurance cover start and cease? for more information.
Continuation option
One of the advantages of having insurance cover in your SignatureSuper plan is that you may be able to continue the
cover after you leave your SignatureSuper employer.
If you exercise the continuation option, all cover under the SignatureSuper plan’s policy and/or the extended cover (as
described above) ceases on commencement of cover under the individual personal policy.
The following conditions will generally apply to your option to continue cover under an individual personal insurance
policy:
– Your cover must have ceased as a consequence of you ceasing employment with the SignatureSuper employer and
not for reasons of ill health (Continuation cover may not be available where you leave a superannuation fund and
there is no change in employment).
– You must apply for the new insurance within 60 days of ceasing employment.
– For TPD and temporary disability, you must be commencing full-time employment within 90 days of terminating
employment with a SignatureSuper employer.
– You are not over 60 years old, or cease to be employed.
– You have not ceased to be an insured member because of duty in the armed forces (excluding Australian Army
Reservists not deployed overseas).
– The benefit usually will be no more than the entitlement to cover under the insurance policy (any special terms
and conditions applying to you under SignatureSuper will also apply under the individual personal policy).
– The premium payable for the individual personal policy will be based on the insurer’s premium rates that apply at
the time they issue the individual policy to you.
– The cover will be provided on the terms, conditions and rates that are current for this type of insurance at the time,
and must satisfy the insurer’s underwriting criteria in relation to occupation, pastimes, smoking status and residency
status.
– The individual policy will be subject to the insurer’s normal minimum premium.
– You must have not received, nor be eligible to receive, any TPD benefits (under a group life policy) or income
protection benefits (under a salary continuance policy), under the insurance policy or similar payments under any
other policy.
– You must be a permanent resident of Australia.
The insurer retains the discretion to refuse to provide cover under the continuation option where we do not have a
retail product which covers the occupational risk of the individual applying for the continuation option.
Your plan summary will tell you if this option applies to you and the specific conditions which apply to your plan.
What happens to your cover if you choose to close your account?
If you choose to withdraw your full account balance and close your SignatureSuper account but do not leave the
employment of the SignatureSuper employer, all your insurance cover will cease. No cover will be provided after the
date you leave the SignatureSuper plan.
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