What default insurance cover are Personal members entitled to?
Personal members may receive default insurance cover of a fixed amount of $250,000 of Death (including Terminal Illness) and Total and Permanent Disablement (TPD) insurance cover. The default insurance cover is subject to a Pre-Existing Condition exclusion. This means that members are not covered for Death, Terminal Illness or TPD if it was caused directly or indirectly, wholly or partially, by a Pre-Existing Condition.
What is default insurance cover?
Default insurance cover is insurance cover which is automatically applied to your account without the need for you to provide any medical history or financial details. You simply start paying an insurance fee (insurance premium) for the default level of insurance cover that you receive.
Eligibility
Not everyone is automatically eligible for default insurance cover.
In accordance with Putting Members’ Interests First legislation (PMIF) that applies from 1 April 2020, if you join or re-join legalsuper on or after 1 April 2020 and:
- you are under 25 years of age; or
- have an account balance of less than $6,000
legalsuper is not permitted to provide you with insurance automatically until you meet the PMIF requirements (i.e. you are at least 25 years of age and have an account balance of $6,000 or more).
If I am not eligible for default insurance cover but want it, can I opt-in?
Yes. If you are under age 25 or have an account balance of less than $6,000 you can request to have default insurance cover by making an early election.
If you make an early election, the following Eligibility Conditions apply:
- a valid early election form (i.e. the early election form completed to the satisfaction of the Insurer) is received by legalsuper within 60 days of the issue date stated on your welcome letter;
- a contribution (except a Superannuation Guarantee (SG) contribution) is received in your account; and
- your account balance must be sufficient to pay for at least one month of insurance fees as at the later of:
- the date of receipt of your valid early election form; or
- the date of receipt of the first contribution (except a SG contribution) applied to your account since joining legalsuper.
If you meet the Eligibility Conditions, default insurance cover will be applied to your account.
If you do not meet the Eligibility Conditions, we will not be able to provide you default insurance cover. If you wish to apply for cover in the future, underwriting (involving provision of health and medical evidence to the Insurer) will be required. Alternatively, you can wait to be provided default insurance cover when you later meet the PMIF requirements (provided any contribution (except a SG contribution) has been received in your account).
Your eligibility for insurance cover under the policy will be checked at the time you lodge a claim.
If I am not eligible when I join, but become eligible later do I then get default insurance cover?
Yes. When you later meet the PMIF requirements (i.e. your account balance reaches $6,000 and I reach age 25) provided any contribution (except a SG contribution) has been received in your account, default insurance cover will automatically be applied to your account.
Your eligibility for insurance cover under the policy will be checked at the time you lodge a claim.
If I receive default insurance cover and don't want it, can I cancel it?
Yes. You may cancel any insurance cover in writing, (including email), or over the phone. Your cover will be cancelled from the date we receive your request or a later date as specified by you.
If you cancel your cover and subsequently decide that you would like to reinstate your cover, you will need to apply for cover by providing medical and other evidence to the Insurer. Learn how to change your cover.
Do I pay for default insurance cover?
Yes. Insurance fees are deducted from the balance of your legalsuper account. The amount you pay for insurance depends on the level of insurance you have. Insurance fees are deducted from your account on the last Friday of each calendar month.
If your account balance is insufficient on the last Friday of the month to pay for outstanding insurance fees your insurance cover will end.
How much will the default insurance cover cost?
The amount you are charged depends on your age and gender.
To see the insurance fees (insurance premiums) applicable to you, please refer to the Employer Sponsored Super & Personal Super Additional Information document (below):
What is Fixed Cover?
Fixed Cover means the amount of insurance cover is fixed and does not change as you get older. However, the insurance fee you pay will be subject to increases on certain birthdays (and annual increases from your 60th birthday).
The insurance fee for Fixed Cover also depends on your gender.
What is a Pre-Existing Condition?
A Pre-Existing Condition means an injury that you suffered or an illness which first became apparent to you on or before the date your cover started or restarted under the current policy. You can apply in writing to the Insurer to have this restriction removed. Removal of this restriction is at the discretion of the Insurer after considering detailed medical evidence of your health.
The Insurer will advise if your application is successful, and if so, the date of the removal of the restriction on your Pre-Existing Condition(s).
More information
For the full terms and conditions of our insurance offer, please refer to our Employer Sponsored Super & Personal Super Additional Information document: