Voluntary income protection insurance – DEC 2021
INCOME PROTECTION INSURANCE
Income Protection insurance 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 insure up
to 75% of your annual salary plus a 10% contribution to super (85% in total) to a maximum
of $25,000 per month. This way you don™t have to think about 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
cove r.
HOW MUCH DO I GET?
The bene˜t 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 Œ that is, you™re no longer
totally or partially disabled;
>
the maximum two-year bene˜t period expires;
>
upon the date of your death;
>
you contact us (by phone or in writing) asking to cancel your
cove r ;
>
your First Super account has insuf˜cient funds to pay the
premium;
>
you cease to be a member of First Super; or
>
you commence active duty with the armed forces of any
country (except for the Australian Defence Force Reserve,
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 Blue Collar/manual,
White Collar/non-manual or Professional rates.
Please refer to the
Insur ance Guide
for rates or call our
Member Services Team on
1300 360 988
and we™ll help
work it out for you. Alternatively, you can use the insurance
calculator on our website
˜rstsuper.com.au/calculators
.
WHAT IS THE WAITING PERIOD?
The waiting period is the number of days after you are
disabled (unable to work) and before your ˜rst Income
Protection payment. You have a choice of three waiting
periods: 30, 60 or 90 days. Premiums are generally lower
for longer waiting periods.
H OW D O I PAY FO R COV E R?
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
˜rstsuper.com.au/publications
and complete
the Application for Insurance Cover Form or you can call
our Member Services Team on
1300 360 988
.
If you are not sure how much cover you need or
would like to discuss your insurance options, you
may want to seek ˜nancial advice.
For ˜nancial advice you can trust, call our
Member Services Team on
1300 360 988
and
ask to speak to a First Super Financial Planner^.
^Financial advice will be provided by First Super Financial Planners, who are authorised representatives of Industry Fund Services
Ltd (IFS) (ABN 54 007 016 195 AFSL 232514). Intra-fund advice is available at no additional cost to First Super members. If this advice
becomes complex, there may be additional costs paid for on a fee-for-service basis.
INCOME PROTECTION INSURANCE FACT SHEET˚ PAGE2
Important information:
The material contained in this bulletin is accurate and reliable as at December 2021.
This information is of a general nature only and does not take into account your personal circumstances or situation.
We recommend that you seek quali˜ed ˜nancial 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 contacting our Member Services Team on
1300 360 988
or
mail@˜rstsuper.com.au
,
or direct from
˜rstsuper.com.au/pds
.
First Super Pty Ltd
ABN 42 053 498 472
AFS Licence No: 223988
RSE Licence No: L0003049
First Super Pty Ltd
as Trustee of First Super
ABN 56 286 625 181
WANT TO KNOW MORE? WE’RE HERE TO HELP.
1300 360 988
(8am – 6pm weekdays, Melbourne time)
˜rstsuper.com.au
mail@˜rstsuper.com.au
Go to
˜rstsuper.com.au/insurance
to ˜nd out more.
EXAMPLE
Jason is a 28-year-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 (made up of 75% income replacement and 10% superannuation contribution).
He chooses a waiting period of 60 days.
As a 28-year-old, with a 60-day waiting period, Jason™s annual premium is $5.74 per unit (Blue Collar/manual rate).
Therefore, 35 units of Income Protection cover would cost Jason $200.90 per year, or $3.86 per week.
If he were disabled, Jason would receive a bene˜t 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).