You are here:

Reviewing Hostplus Life Insurance

Insurance through your superannuation might be a good idea if you want to avoid exclusions and premium loadings. However, if you’re young and healthy, you can generally get a fully underwritten policy that’s tailored to your unique requirements for much cheaper. There are also some tax implications and cover restrictions when choosing to take out insurance through your super fund.

Russell Cain

Fact Checked

Updated: 19 May 2024

If your super fund is with Hostplus and you’re wondering whether it would be cheaper and more convenient to purchase life insurance through super, then keep reading our Hostplus insurance review.

ComparingExpert does not currently have access to this provider. Visit hostplus.com.au to request a quote and compare their price and benefits to the Australian life insurance brands we have access to.

What is Hostplus insurance?

Hostplus is a superannuation fund for workers in the hospitality, tourism, recreation and sports industries. However, anyone can join the fund no matter what industry you’re in. Hostplus uses Metlife as its group life insurance provider since switching from ANZ’s OnePath in 2013. The trustee of your super fund will generally be the owner of your policy.

Pros and cons of life insurance held inside Hostplus Superannuation

Benefits
Drawbacks
An easy and convenient application process that might result in guaranteed acceptance.
A claim may take longer because your benefit will usually be paid to your super fund and the fund must pay your nominated beneficiaries.
The super fund can generally buy policies in bulk, and thus receive a discount, which might result in cheaper premiums.
Paying premiums through your super fund might decrease your retirement savings.
Death and TPD are automatically applied when becoming a member.
Critical illness insurance is not available within your super fund and income protection through super usually exclude certain benefits, for example, child care benefit.
Specific life events cover allows you to increase your cover when a significant life event occurs, up to $200,000, without the need for lengthy paperwork or medical information.
TPD cover inside super stops at your age 65 and death cover ends when you reach age 70. Cover is excluded for a variety of occupational types.
You can change your level of cover at any time during your membership, to better suit your circumstances.
TPD cover is only available for Any occupations. Your occupational rating will generally influence death and TPD premiums; the higher the underwriter rates your risk, the higher your premium.
Because premiums are paid from your Hostplus super fund and not from your after-tax income, some tax benefits might be available.
If the person(s) nominated to receive your death benefit is not financially dependent on you, for example, an adult child, they might have to pay taxes on the lump sum received.

Hostplus superannuation fund insurance products

Insurance available from this fund includes death cover, TPD and salary continuance insurance.

If you’re already a member, you’ll receive automatic life and total and permanent disability coverage, depending on your age and other eligibility criteria. If you are between the ages of 11 to 15 or over the age of 65, you’ll usually only receive death benefits.

You can opt-out of this automatic cover at any time if you prefer to find life insurance elsewhere.

Hostplus death benefit and TPD

A lump sum benefit is payable in the case of your death, diagnosis of a terminal illness or total and permanent disablement. This benefit is in addition to your Hustplus super account balance.

If you have a Hostplus Personal Super Plan and are under the age of 61, you’ll usually receive a fixed death and TPD cover amount to the value of $100,000 depending on your age. However, generally, if death or disability is caused directly or indirectly because of a pre-existing condition, no insurance benefit will be payable.

You have the option of unitised or fixed benefit cover:

You can choose to switch from unitised to fixed cover at any time, but you can’t switch from fixed to unitised unless you decrease your insurance coverage.

Application to increase cover

You can apply for additional insurance coverage on their website. To apply, you need to complete the ‘increase insurance cover’ application form, and you might have to undergo additional medical tests. Acceptance is subject to underwriting from Metlife.

You can apply for as much death cover as you want, but underwriting conditions will generally apply. TPD cover will be limited to a maximum of $5 million.

Specific life events benefit

You can increase your cover by 25%, up to a maximum of $200,000 when a particular life event has occurred. For example, you got married, started a family, your child started school, you bought a home, or you’re getting a divorce.

To help you determine whether Hostplus insurance provides value for money, we encourage you to get a quote from them and compare it to Australia’s leading life insurance companies.

Hostplus TPD definition

Hostplus TPD includes 5 descriptions for total and permanent disability; either one could result in a valid claim when meeting all relevant criteria AND to the extent that you are unlikely to ever work again in Any Occupation for which education, training, or experience reasonably suits you.

Carefully read the Hostplus PDS for specifics regarding a valid TPD claim.

Occupations excluded from cover

Below is a list of some of the professions for which Hostplus income protection does not provide cover for. Please see their product disclosure statement (PDS) for the full list.

  • Actor and actress/entertainer
  • Agricultural pilot
  • Animal handler/trainer/breeder
  • Bodyguard
  • Beautician/hairdresser/manicurist
  • Gravedigger
  • Courier bicycle/motorbike
  • Debt collector
  • Disc Jockey
  • Farmer
  • Fisherman/woman
  • Garbage collector
  • Homemaker
  • Labourer
  • Police
  • Scuba diving instructor
  • Student
  • Vocational therapist

Hostplus super income protection exclusions

No benefit will be payable in the event of your intentional, self-inflicted act, or any attempt to commit suicide.

Frequently Asked Questions and Answers

Metlife underwrites life insurance products held within your Hostplus super fund.

Death and TPD premiums are generally dependent on the amount of cover you want, your gender, age and occupation. For example, a 35-year-old male working in a white-collar profession, purchasing $500,000 worth of life insurance can be expected to pay $260 per month, as at July 2018.

For a more specific premium price, use the Hostplus insurance calculator.

Use their free online insurance calculator to calculate a Hostplus insurance quote. You can join online via their website or give them a call on 1300 467 875.

To make a life insurance claim, please contact Hostplus at 1300 467 875 as soon as reasonably possible, and their dedicated claims team will assist you every step of the way.

Important: You will only be entitled to a claim if you meet the criteria of release stated under the fund’s terms and conditions, including:

  • Satisfying the insurer’s (Metlife) definition of a claimable event.
  • Meeting the super fund’s definition of release.

You can cancel your Hostplus life insurance policy by emailing them at [email protected] or writing to them. Generally, no premiums will be refunded, unless you cancel within 60 days of your policy commencing.

Share:

Specialist

Russell is the founder and CEO of Life Insurance Direct and has been quoted in The Sydney Morning Herald, The Age, Independent Financial Adviser, Risk Adviser, Adviservoice, and Insurancenews. Russell has over 15 years’ experience in the Australian life insurance & financial services sector and is instrumental in driving the latest innovations in our insuretech platform.

Other Topics

Find out more with our useful guides

Have a question? Ask a specialist.

Submit