Reviewing Hostplus Life Insurance

Published: July 24, 2018

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.

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.

ComparingExpert does not currently have access to this provider. Visit hostplus.com.au to request a quote and compare their price and benefits online with some of Australia’s major life insurance companies.

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

Advantages Disadvantages
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.

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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:

  • Unitised insurance cover: You pay a set price for each unit cover you hold and the unit changes depending on your age; decreasing as your age increases. However, the amount you pay per unit remains the same.
  • Fixed insurance cover: Your unit cover stays the same, but the premium you pay will increase each year. When you turn 61, your TPD benefit will reduce each year by 20% to zero at your age 65.

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.

When will no benefit be payable?

  • If the claimable event is caused directly or indirectly by war.
  • If you are subject to an exclusion for a pre-existing condition.

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.

  • Unlikely to return to work

    Employed in a gainful occupation and you suffer an injury or illness and are totally unable to engage in that occupation for a period of 6 consecutive months and are determined by the insurer at the end of the six months that you are unlikely ever to be employed in any occupation that education, training or experience reasonably suits you.

  • Permanent impairment

    An injury or illness resulted in permanent impairment of at least 25% of the whole person's functioning as defined by the American Medical Association.

  • Specific loss

    Illness or injury resulting in the total and permanent loss of use of two limbs, or the sight in both eyes or one limb and the sight in one eye.

  • Loss of independent existence

    The injury or illness leaves you unable to perform at least two of the five activities of daily living, for example, bathing, dressing, eating, using the toilet and getting in and out of bed without the assistance of a walking aid.

  • Cognitive loss

    The insurer determines that loss of intellectual capacity or total and permanent deterioration require you to be under continuous care and supervision by another adult for at least 6 consecutive months.

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

Hostplus income protection

Hostplus provides 90% of your monthly pre-disability income, capped at $30,000 per month, to help you protect your income should you be unable to work due to an injury or illness. 75% will usually be paid to you and 15% paid into your super account.

Benefit period: 2 years or up to your age 65, depending on your occupation.

Waiting period: Choose between 30, 60 or 90 days if you're under the age of 65.

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

Who underwrites Hostplus insurance?

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

How much does Hostplus life insurance cost?

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.

Where can I get a Hostplus insurance quote?

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.

How do I make an insurance claim?

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.

How to cancel Hostplus insurance

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.

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