Sunsuper Life and Income Protection Insurance Review
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If your employer's choice of a superannuation fund is Sunsuper, you likely already have some life insurance and TPD cover automatically included.
However, as a working professional you might be wondering if you have enough protection should you be unable to work due to illness or accident and if your family will be financially supported if you pass away.
In this article, we review the types of insurance offered by Sunsuper, the benefits available and how their claims process works.
About insurance through Sunsuper
Sunsuper insurance is underwritten and issued by the life insurance company AIA Australia Limited. It's vital that you know:
- Your insurance policies are controlled by Sunsuper.
- Life insurance and TPD cover are linked. Should you claim TPD, your death cover will reduce by the TPD amount paid.
- Only stepped premiums are available. Meaning insurance generally starts off cheaper but increases each year as you age.
- Cover is guaranteed renewable. Even if you’re health, occupation or pastimes change, the super fund will renew your benefits every year.
- Trauma insurance is not available through your superannuation.
Additional options you might be interested in
If you qualify for White Collar cover
death and TPD usually provides 50% more protection at no additional cost, and you may pay less for your income protection or be entitled to more coverage.
With the Life and Age Event option
you can typically increase your Insurance Assist cover during the times you need it most. For example, when getting married or starting a family, you can increase your death and TPD benefit when applying within180 days of the significant life event.
Double your death and TPD Assist
insurance with the New Member Option. 120 days after joining Sunsuper you can double your cover without any complicated medical information or forms.
Sunsuper life insurance review
Through your Sunsuper for Life superannuation account, you're able to get 3 types of insurance products; death cover, total and permanent disability insurance, and income protection insurance. Death cover and TPD are usually added automatically upon joining the fund, but you'll have to opt-in to get income protection insurance.
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If an illness or injury leaves you unable to ever work again in Any occupation, Sunsuper TPD Assist generally pays you 6 annual payments over a 5 year period, to help cover the cost of rehabilitation support and special medical needs. Alternatively, in some circumstances, you'll receive a lump-sum benefit when totally and permanently disabled. After the 6th annual payment has been made death and TPD cover will cease.
Usually, a TPD benefit will pay out if you’re unable to carry out specified activities, lose your sight or limbs or have been diagnosed with a long-term illness like Multiple Sclerosis or Alzheimer's.
- Entry age between 15 and 66.
- Generally, no waiting period.
- Cover expires at your age 67.
- You won’t have to pay a premium when on TPD claim.
Be sure to read your product disclosure statement (PDS) to gain clarity on what the fund defines as being totally and permanently disabled.
General exclusions on life and TPD insurance
No benefit will be paid if sickness/injury is caused (directly or indirectly) by:
- An intentional self-inflicted act or suicide;
- war or an act of war;
- normal or uncomplicated pregnancy or childbirth; and/or
- elective surgery or voluntary treatment within the first 6 months of your cover starting or being reinstated.
Review Sunsuper income protection insurance
When sick or injured for a short time, Sunsuper income protection generally pays you up to 75% the income you were earning before becoming disabled. The cover is not automatically included; you must opt-in within 120 days of joining the fund to be eligible for income protection and must work at least 15 hours a week on a permanent basis.
- The entry age is between 15 and 64.
- Cover expires at age 65.
- Your cover will continue even if you decide to leave your employer.
- Benefits period: 2 years.
- Waiting period: 90 days
- Maximum cover amount of $5,000 or $7,500 if you have White Collar cover.
When income protection insurance will generally not pay a claim
- When self-employed.
- Unable to work because of a self-inflicted injury or attempted suicide.
- Criminal activities resulted in your inability to work.
- Uncomplicated pregnancy, childbirth or miscarriage.
- Deployment in a hostile environment as part of your active military service.
Tailored death, TPD and income protection cover options
If you have a Super-savings account, you’re able to tailor your coverage to meet your specific requirements via Sunsuper’s Tailored Cover options:
Tailored death cover
Unlimited cover amount with up to $5million for a terminal illness benefit.
Tailored TPD insurance
Cover is limited to $3 million.
Tailored income protection
$30,000 maximum coverage with a choice of benefit period (2 or 5 years, or up to your age 65) and choice of waiting period (30,60,80 or 180 days). This cover is also generally available to self-employed individuals.
Important to note: White Collar cover is not available in these tailored options.
Frequently asked questions and answers
Who owns Sunsuper?
Sunsuper Pty LTD is the Trustee of the Sunsuperannuation Fund, which is sponsored by Chamber of Commerce and Industry Queensland.
How do I know if I have insurance with them?
As a member, you simply need to go online and log in to their Member Online portal. Select ‘Insurance', and the type and amount of insurance you have and how much you pay will be displayed.
How to make a claim?
As soon as you think you might be eligible for a benefit, contact Sunsuper directly. They will provide you with the relevant claim forms. Once you've supplied them with the completed claims forms and appropriate supporting documentation, the Sunsuper Trustee will review your claim, and an outcome will be communicated to you.
Important; when claiming for insurance inside super, you'll have to meet both the insurer's definition of a claimable event and the fund's condition of release according to the Superannuation Industry Supervision (SIS) legislation.
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