Voluntary income protection insurance
February 9th, 2023
Income Protection cover provides you with a monthly income for up to two years if you can’t work for a long period because you are sick or injured. You can receive up to 85% of your salary while you are off work (depending on your level of cover). This way you don’t have to think about the ongoing life expenses and you can concentrate on getting better.
WHO CAN APPLY?
You can apply for cover if you:
> Are aged between 16 and 64 years of age inclusive; and
> Work on a permanent full-time or part-time basis and are regularly working at least 15 hours per week. Casual employees are not eligible for Income Protection cover.
HOW MUCH DO I GET?
Up to 75% of your insured annual salary plus 10% contribution to super (85% in total) to a maximum of $25,000 per month. The benefit is payable monthly for up to two years and the cover will end when one of the following events occur:
> You reach the age of 65;
> You recover or return to work; that is, you are no longer totally or partially disabled;
> The maximum two year benefit period expires;
> Upon the date of your death;
> You write to us asking to cancel your cover;
> Your First Super account has insufficient funds to pay the premium;
> You cease to be a member of First Super; and
> You commence Active duty with the armed forces of any country (except for the Australian Defence Force Reserves, in which case, cover will only cease if you become the subject of a call-out order under the Defence Act).
WHAT IS THE COST OF COVER?
The cost of Income Protection cover will depend on:
> The waiting period you select (30, 60, 90 days);
> The amount of cover you select;
> Whether you are male or female; and
> Whether you qualify for standard, low risk or professional rates.
Please refer to the Insurance booklet for rates or call our Service Centre 1300 360 988 and we’ll help work it out for you.
Alternatively, you can use the insurance calculator on our website firstsuper.com.au
WHAT IS THE WAITING PERIOD?
The waiting period is the number of days after you are disabled (unable to work) and before your first income protection payment. You have a choice of three waiting periods: 30, 60 or 90 days. Premiums are generally lower for longer waiting periods.
HOW DO I PAY FOR COVER?
As with all our insurance products, the premium for Income Protection is deducted monthly from your First Super account.
HOW DO I APPLY FOR COVER?
You can visit firstsuper.com.au/publications and complete the Application for Insurance Cover form or you can call our Service Centre on 1300 360 988.
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If you are not sure how much cover you need or would like to discuss your insurance options – a Financial Adviser can help you. Get financial advice you can trust, call 1300 360 988 and ask to speak to your Financial Adviser today. |
Example
Jason is a 28 years old cabinet maker and his annual salary is $50,000.
He wants Income Protection cover of $3,500 per month, or 35 units. This is equal to 85% of his salary at the time he applies.
He chooses a waiting period of 60 days.
As a 28 year old, with a 60 day waiting period, Jason’s annual premium is $5.50 per unit (standard rate).
Therefore 35 units of Income Protection cover would cost Jason $192.50 per year, or $3.70 per week.
If he was disabled, Jason would receive a benefit of $3,500 per month.
Of this amount $3,125 per month (75% x $50,000 ÷ 12) would be paid directly to him (less tax).
The remaining $375 would be paid to his First Super account (less tax).
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WANT TO KNOW MORE? WE’RE HERE TO HELP. Please contact our Service Centre today. Call 1300 360 988 Email mail@firstsuper.com.au PUTTING MEMBERS FIRST |
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Important information: The material contained in this bulletin is accurate and reliable as at August 2016. This information is of a general nature only and does not take into account your personal circumstances or situation. We recommend that you seek qualified financial advice before making any investment decision. The bulletin is provided by First Super Pty Ltd ABN 42 053 498 472, AFSL No. 223988, as the Trustee of First Super ABN 56 286 625 181. If you intend to invest in or continue to hold this product you should obtain and consider a copy of the Product Disclosure Statement which is available by phoning 1300 360 988. |