Death and Total and Permanent Disability (TPD) insurance cover can help look after you or your family in the event that something happens to you.
This type of cover provides a lump sum benefit if you are totally and permanently disabled, you become terminally ill or you die.
A default amount of Death and TPD cover will be provided automatically when your Accumulate Plus account is opened (and premiums will be deducted from your account) where all of the following apply:
If eligible, the default amount of Death and TPD cover is calculated as 4 times your notional* salary. Because cover is calculated based on your notional salary, your amount of cover (and your premiums) will therefore change in line with any notional salary changes.
Of course, it’s important to always consider your personal circumstances to ensure you have the right amount of cover to suit your needs. If needed, you can change your amount of Death and TPD cover at any time:
If you are not eligible to receive any cover automatically, you may still be eligible to apply for cover.**
* ‘Notional salary’ means an amount determined by your employer and communicated to the fund which is used to calculate death and TPD insurance cover, benefits and premiums (unless your cover is based on a fixed dollar amount). Your notional salary may be different to your salary. Ordinarily, if you have multiple based cover, your TPD benefit will be calculated as a multiple of your notional salary at the date of disablement. However, effective 1 January 2017, if the insurer is satisfied that a claim for TPD is payable under the policy and, within five years before the date of disablement, your notional salary decreased as a direct result of the sickness or injury that caused your disablement, your notional salary for the purposes of calculating the amount of the benefit payable will be your notional salary immediately before it was first decreased.
** As part of our standard duty of care, we will disclose all details to you about any cover you apply for.
Most super funds offer insurance within your account, providing an effective option to help protect you and your family. Find out more about how it works. (Source: ASIC MoneySmart)
None of us can predict the future, but with the right insurance cover you can feel reassured that you and your family will be looked after if the unexpected happens. (Source: Colonial First State)