Death insurance cover

What is death insurance?
 

Death insurance cover, sometimes referred to as life insurance cover, is one of the most common types of insurance coverage that people have through their super.

How death insurance cover works

By having death cover within your super account, we’ll provide a lump sum benefit to your beneficiaries or estate in the event of your death. Alternatively, if you are diagnosed with a terminal illness with 24 months or less left to live this benefit can be paid to you directly. For further information on beneficiaries, including how to nominate them please see our beneficiaries webpage.

This payout can help remove a major source of worry during an emotional and stressful time. It is often used to help loved ones manage financial obligations including everyday expenses and major debts such as mortgages, as well as future expenses, such as children’s education. 
 

Determining the appropriate level of cover

Typically you’ll be provided with default automatic death cover as part of your employer plan. The amount of cover you’ll be provided is often determined using information such as your age and salary. 

You should however ensure that your level of coverage is appropriate for your personal circumstances. Having too little could leave your loved ones struggling to make ends meet if something where to happen to you, whereas having too much could mean higher premiums needlessly drain your super balance, leaving you with a lower balance when you retire.

When it comes to how much cover you need, there is no ‘one-size fits all’ figure. Determining the amount of cover that’s appropriate for your circumstances requires you to take into consideration personal circumstances such as, but not limited to, annual income, dependent children, as well as any mortgages and other debts.

To help you determine how much cover you may need we’ve made available a calculator from one of our insurers, AIA Australia, which can take into account your circumstances to provide you with an idea of the level of cover you may need.
 

Updating your cover amount

As your personal circumstances change you may determine that more or less cover is appropriate. You can check, change or cancel your cover within the insurance section of your online account. Alternatively, you can call our Helpline on 1800 682 525.
 

Life events

As part of our arrangements with some employers, you may be eligible to increase your death cover without underwriting within 60 days of a ‘life event’ occurring, such as the birth of a child, a marriage or taking out a mortgage among others.

To determine if your employer plan offers this service, as well as for further information, please login to your online account, and search for the ‘Life Events Cover’ form in the ‘Documents’ section.