How Insurance Works

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ON THIS PAGE :

• What is Automatic Cover?
• When does cover start?
• Extra cover
• Income Protection
• Income Protection Package Options ( for new members)
• Personal Plan members
• When is Death and TPD payable?

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What is Automatic Cover?

At the time of joining Catholic Super as an employer sponsored member on or after 15 November 2008, you will be automatically provided with two units of Death & TPD cover under the Standard Benefit Scale, and five units of Income Protection cover without needing to provide evidence of your health, providing you are less than 65 years of age for disablement cover and less than 70 years of age for death cover.

If you provide your salary details at the time of joining, you will be provided with up to 85% of your salary to a maximum of 17 units of Income Protection cover without evidence of health. You also have 60 days to choose one of the Income Protection options which provide for different waiting periods and benefit payment periods.

Employer-sponsored means that you are currently employed by a participating employer, i.e.  your employer pays super contributions to Catholic Super on your behalf.

The amount of benefit provided per unit changes depending on your age cutting out at age 65. Death only cover can continue to age 70.  Calculating Your Basic Cover details the amount of cover provided and the premiums that apply under the Standard Benefit Scale.


When Does Cover Start?

For employer sponsored members, insurance cover will commence from the latest of:

• the date you commence employment with your employer sponsor;
• the start date of the period for which the first employer contribution is paid on your behalf;
• the date 120 days before your employer contribution was received or
• the date your employer sponsor becomes a participating employer of Catholic Super.

If you are not ‘at work’ on the date your cover commences you will receive ‘limited cover’ for TPD and IP cover until you are again ‘at work’.
 
For Personal Plan members, insurance cover will commence from the date you are advised in writing by Catholic Super that cover has been accepted. Cover is subject to you having a sufficient account balance to pay premiums. Interim accidental death/disablement cover applies during the period of underwriting for any application for cover.

Extra cover

Catholic Super’s automatic cover may not provide enough insurance cover to meet your needs. For instance a member with a mortgage and children at school may require a higher level of cover.

You can apply for additional Death Only or Death and TPD cover under our Build Your Own cover option and additional units of Income Protection cover if needed. Additional cover is subject to an application process and acceptance by the insurer. Interim accidental death/disablement cover applies during the period of underwriting for any application for cover.

Obtaining your additional insurance cover through Catholic Super makes sense not only because of the cost savings, but also because the premium costs are deducted from your super account. There’s no impact on your take home pay.      


Income Protection

Imagine what it would be like to be off work for an extended period because of illness or injury without your regular income. After your sick pay runs out, how would you pay for living expenses and bills?

Income protection cover protects you in these circumstances by providing an income if you are unable to work temporarily because of illness, injury or accident. A partial benefit may also be payable to you if you return to work in a reduced capacity.

As an employer sponsored member, you will receive Basic Income Protection cover if you did not choose to opt out of Income Protection cover when you completed your Membership Application Form to join Catholic Super.

Your basic cover will be one of the following:

• the number of units applicable to the salary range you indicated on your Membership Application Form, up to a maximum of seventeen units,
  OR
• if you did not indicate your salary range on the Membership Application Form, you will receive five units of cover.
  

Income Protection Package Options


The Basic Income Protection package includes a 60 day waiting period and a 5 year benefit payment period. As a new member you will be able to select a different Income Protection package option within 60 days of receiving your Welcome to the Fund letter.


These options allow you to shorten you waiting period and/or lengthen your benefit payment period without having to provide evidence of health as long as you make your choice within the 60 day timeframe outlined above.

• 60 day waiting period, 5 year benefit payment period (Basic Cover- automatic)*
• 60 day waiting period,  up to age 65 benefit payment period
• 30 day waiting period, 5 year benefit payment period
• 30 day waiting period, up to age 65 benefit payment period

*If you do not make a selection, you will automatically fall under option 1 which is the Basic Cover. In this category, where you are disabled, your benefits are payable for up to five years after a waiting period of 60 days.


If you have previously been paid, or were eligible to be paid a Total & Permanent Disablement (TPD) benefit, you are not eligible for TPD or Income Protection cover under Catholic Super and your cover will be restricted to Death Only cover.

Personal plan members

If you are employed you can apply for Income Protection cover. Your Income Protection cover will commence from the date you are advised in writing by Catholic Super that cover has been accepted. Cover is subject to you having a sufficient account balance to pay premiums.

The Income Protection Packages choices outlined above are also available to members of the Personal Plan subject to application and acceptance by Catholic Super.

Interim accidental death/disablement cover applies during the period of underwriting for any application for cover.

Each member pays for their own insurance cover. The amount of cover you have and the cost will change depending on the type of cover and your age.

If you have previously been paid, or were eligible to be paid a Total & Permanent Disablement (TPD) benefit, you are not eligible for TPD or Income Protection cover under Catholic Super and your cover will be restricted to Death Only cover.

When is a Death or TPD Insurance Benefit Payable?

A death insured benefit is payable if you die whilst insured through Catholic Super. A death benefit is generally paid to your estate. For this purpose, it is important you have a current will.

To provide greater security about who will receive your benefit if you die, you can make a nomination which binds the trustee to pay your death benefit to a specified person(s) providing that you are still a member of Catholic Super on your death. For more details you can download the Binding Death Benefit Nomination form.

A TPD benefit is payable if you are insured for TPD cover at the time you become disabled, and you meet the definition of Total and Permanent Disablement in the insurance contract that is current at the time of your disablement.

In this situation you are entitled to claim the balance in your Catholic Super account and any insured TPD benefit to which you are entitled. The tax payable on TPD benefits varies according to your age, length of service and the amount of benefit. Catholic Super will provide an outline of such tax payable should you become entitled to a TPD benefit.

More Information

More information about the Insurance options available can be found in the Product Disclosure Statement or you can contact the Fund Office.