Types of insurance

 

When it comes to protecting your lifestyle, loved ones and financial future, it’s important to consider the different types of cover that may be best suited to your circumstances.

 

Cover to suit your needs

The following types of insurance are available to eligible Accumulate Plus members:

 

  • Death and Total and Permanent Disablement (TPD)
    • With Death and TPD cover, a lump sum benefit may be paid if you die or become terminally ill, or if you are totally and permanently disabled.

      This type of cover applies automatically (equal to 4 times your notional* salary) for eligible members upon joining Accumulate Plus, or you can apply for cover.

      Minimum amount of cover: $1,000

      Maximum amount of cover: $5 million for Death, $3 million for TPD

      Depending on your category of membership, you may be able to choose to have your cover amount calculated as a multiple of your notional salary (which therefore changes accordingly with changes in your notional salary), a fixed cover amount, or a combination of both.

      Premiums apply for all insurance cover in Accumulate Plus (including any cover you receive automatically) and are deducted monthly from your account balance.

      There is important information you should know about insurance cover, which you can find in the Reference Guide: Insurance Cover.

  • Death-only cover
  • Salary Continuance cover
    • With this type of cover (sometimes known as income protection), a monthly benefit may be paid if you are disabled due to sickness or injury for longer than your selected waiting period.

      Minimum amount of cover: $100 per month

      Maximum amount of cover: the lesser of 75% of your monthly salary or $25,000 per month

      A key thing to remember is to review your Salary Continuance cover regularly to ensure that your policy is relevant to your current income level. For example – if at the time of a claim the full benefit amount that is payable (based on income you are receiving at the time) is actually less than the amount for which you have paid premiums, the excess premium will not be refunded.

      Premiums apply for all insurance cover in Accumulate Plus and are deducted monthly from your account balance.

      There is important information you should know about insurance cover, which you can find in the Reference Guide: Insurance Cover

 
 

Important things to remember about insurance cover in Accumulate Plus

  • Payment of any insurance benefit is subject to a claim being accepted by the insurer and the trustee.
  • In some cases, you may not be eligible for insurance cover or your cover may be subject to exclusion clauses or restrictions applied by the insurer. You may need to consider alternative options for cover.

Find out more about the terms and conditions of insurance cover in the Member Booklet (PDS) and Reference Guide: Insurance cover for Accumulate Plus.

 

About the insurer

Insurance in Accumulate Plus is provided under policies issued to the trustee by The Colonial Mutual Life Assurance Society Limited (ABN 12 004 021 809, AFSL 235035) (CommInsure). The trustee and CommInsure are wholly-owned subsidiaries of Commonwealth Bank of Australia (ABN 48 123 123 124, AFSL 234945).

 

*  ‘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.