Do you have the right type of insurance?

November 12 |  4 min read

Many Australians who have insurance hold it through their superannuation account

Super funds not only help you in saving for your retirement but also offer insurance as peace of mind in the event that something may happen to you. So, if you have insurance, it’s important to make sure you’re not underinsured or being overcharged for cover you don’t need, and if you don’t have insurance, it might be worthwhile exploring the option to take it out through Vision Super.

What are the types of insurance offered?

Vision Super provides the following cover and the flexibility to choose the amount of cover to suit your unique needs.

  1. Income Protection (IP) or salary continuance cover
    You’ll receive a regular benefit of up to 75% of your income (plus super contributions) if you’re unable to work due to illness or injury. This can continue to contribute to your retirement savings and help to fund your everyday living costs, like your mortgage, school fees or car repayments, and help you maintain your lifestyle while you’re off work.
  2. Death and TPD (total permanent disability)
    Death cover (also known as life insurance), pays a lump sum to you or your dependants if you die or you’re diagnosed with a terminal illness. This money can be used to pay off debts, pay day-to-day expenses, or be invested for your family’s future needs.
    TPD is a one-off payment that you will receive if you become totally and permanently disabled and are no longer able to work as a result. This payment can help protect you and your family’s lifestyle and provide funds to help with medical costs and ongoing care.
  3. Death only

Tailor your insurance

The level of cover you receive when you first start a policy may not necessarily meet your needs later in life when your circumstances change, for example if you get a mortgage or have children, so it’s important to regularly assess what you’re covered for.

A tailored insurance policy should provide cover that meets your personal circumstances, offering the best possible outcome if you ever need to make a claim. When reviewing your insurance to make sure it’s right for you, you should consider:

  • Your family’s financial needs if your regular income were to be lost. How would they cover the mortgage repayments, school fees or grocery shopping?
    Is it up to date? When you get a pay-rise your insurance doesn’t automatically reflect the change in your income. The same is true if you have children or get a mortgage.
  • Whenever your life changes, you should consider updating your insurance cover
  • Whether you may be able to get insurance cover again in the future – this may be difficult depending on your age, occupation and health circumstances.
  • The cost of your insurance cover and the impact to your account balance.

To use the Vision Super calculator to figure out how much Death and TPD or Income Protection cover you may need visit our Calculators page.

You can find details of the insurance you hold by logging into (or registering) your online account via our secure portal or your most recent statement tells you the insurance you currently hold, but if you can’t find it or you’re still not sure, just call us and we’ll be happy to answer your questions.

It can be challenging to know what cover is right for you and your family. So, whenever you review if your current cover is right for you, it might be helpful to consider seeking financial advice before making any changes. If this is something that interests you, call us on the number below and we can talk to you about how to do this.

Recent legislative changes to insurance arrangements

There are some instances where members won’t be eligible for default cover, or cover will be cancelled. Super funds must cancel insurance on inactive accounts, for example, where contributions have not been received for 16 months. If you fall into that category Vision Super will let you know, giving you the opportunity to elect to keep your cover, otherwise, your insurance will cease.

Other rules apply to those who are under 25. From 1 April 2020, you are no longer provided with default insurance cover and if you want to be covered, you will need to opt in, provided other eligibility criteria are satisfied. Super funds are also prohibited from providing default insurance cover for new members until their super account has a balance of $6,000. There are terms and conditions around these rules, so just make sure to touch base with Vision Super to see if you’ll be affected.

Best Doctors

In order to provide our members with further peace of mind, Vision Super members and their family* have free access to Best Doctors. Through Best Doctors, you’ll have access to international expert medical advice and guidance from the comfort of your own home. Best Doctors offers easy access to leading GP’s, specialists and mental health clinicians via Telehealth, helping you get the right diagnosis, treatment and information.

You don’t need to be on a claim to access the service and can use Best Doctors at any time, anywhere, as often as you need for no extra cost. For more information about Best Doctors and to sign up click here.

Manage your insurance

Managing your insurance policy is straight forward. All you need to do is log into your account online, click “insurance” and click on “manage my insurance”.

You will then be prompted to fill out a Vision Super/MLC form online where you can increase or decrease the amount you’re covered for by providing the health information that’s requested. Or if you prefer paperwork, just call us and we’ll send it out to you.

Insurance can be complex so if you need assistance please let us know. There are many reasons why you might want to take out insurance through your super fund, such as cheaper premiums, since Vision Super will purchase bulk insurance from MLC, and ease of payment with your payments coming directly out of your super balance.

Premiums

Vision Super is committed to continuing to provide a sustainable insurance offering to our members, ensuring you have cover when you need it most. We review our insurance offering on a regular basis and work with MLC Life Insurance to make sure any changes in premiums are reasonable and transparent, and the last increase to your insurance premiums was on January 1, 2015.

While we know that no one likes a price increase, significant rises in the number of claims have contributed to the increased cost of providing life insurance. As of January 1st 2021 there will be premium increases across our Death/TPD/IP offering.

These increases have come about due to:

  • An increasing cost of insurance claims
  • Impact of legislated changes to insurance within superannuation

Further information will be provided directly to you about how these increases will affect you and your cover.

We’re here to help

Vision Super is there to make it easy for you to get the cover you need. Don’t hesitate to contact our Member Services hotline on 1300 300 820 Monday to Friday 8:30 am to 5 pm or email us at [email protected] if you need help.

 


* Family = Partner, children, parents and partner’s parents.

General Advice Warning
This article includes general information only and does not contain any personal advice because it does not take into account your personal objectives, financial situation or needs or medical situation. It is provided for general information only, to help you understand Vision Super’s products, services, policies and procedures. The information was correct at the time of publication but may have changed since. You should consider whether it is appropriate for you and your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Before making a decision to invest in any Vision Super product, you should read the appropriate Vision Super Product Disclosure Statement (PDS).

November 12 |  4 min read

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