Income Protection

How does it work?

Income Protection insurance cover is automatically available to Catholic Super members who are employed by a participating Catholic Super employer.

Benefits are payable for either up to five years or to age 65 after a waiting period of either 60 days or 30 days if you are totally disabled. A partial disability benefit may also be paid if you return to work in a reduced capacity.

Provided you meet the eligibility requirements you may choose up to 17 units of Income Protection cover at the time you join Catholic Super, without completing an Application for Insurance Cover.

If your income range is above that provided by 17 units you may apply for additional units of Income Protection cover. However, acceptance will be subject to the Insurer’s approval and you may be required to provide evidence of health.

If you are eligible for Income Protection cover and do not nominate a salary on your Application for Membership form, you will receive the ‘default’ level of cover, which is 5 units. Cover is available to employed members aged between 15 and 64 years, provided that you meet the conditions.

Each unit of Income Protection insurance cover provides a gross monthly benefit of up to $585, (ie. $135 per week).

Personal plan members if working, can apply for Income Protection cover by completing our Application for Insurance Cover form. The cover is subject to acceptance by the insurer and notification of acceptance to you in writing by Catholic Super.

The maximum benefit payable under Income Protection cover is 85% of your gross annual income as at the time of claim or $25,000 per month, whichever is the lesser. Up to 75% of your annual income may be paid to you as a replacement for your income, while a further 10% of your annual income may be paid as a superannuation contribution to your super account.

Payments made directly to you cannot exceed 75% of your annual income. If the benefit is paid for a period greater than 12 months it will be indexed by the lesser of CPI or 5%.

The amount of any Income Protection benefit payable will depend on the:

1. number of units of cover you are insured for, and
2. income you are earning from work immediately prior to becoming eligible to receive a benefit.

 Any benefit payable shall be reduced by all amounts payable from the following sources:

1. Workers compensation schemes, and
2. Statutory compensation, pension, social security or similar schemes; and
3. Income benefits from policies of insurance and superannuation trustee(s); and
4. Any sick leave entitlements.

Part pension amounts will not be offset in the event of disablement for members aged between 56 and 65 unless they are disability pensions.

How much does it cost?

The cost of your Income Protection cover will depend on the number of units of cover that you require and your age as well as the IP package option you have selected. Refer to the Income Protection Scale for details.

The cost of your Income Protection cover will be deducted from your account each month and will alter on your birthday each year in line with the premium scale shown in the Income Protection Scale.

To calculate the weekly cost of your cover you simply need to multiply the number of units of cover you require by the cost per unit for your age next birthday.

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Example:

If you are aged 46 (age 47 next birthday)
and you require 10 units of Income Protection cover,
with a 60 day waiting period and a 5 year benefit payment period,

the weekly cost for this will be 10 units x $0.73 per unit = $7.30.

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More Information

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