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.
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.
Making a claim
In the event of your death or you being diagnosed with a terminal illness with 24 months or less to live, once notified we’ll work with the insurer on your behalf to get your benefit paid out.
Your beneficiary or the executor of your estate should call our Helpline on 1800 682 525 to inform us of your passing. Our team will prepare the relevant forms which will be sent for them to complete. Along with the completed forms we’ll also request several pieces of supporting documentation, such as a certified copy of the death certificate.
Please call our Helpline on 1800 682 525. Our team will prepare the relevant forms which will be sent for you to complete. Along with the completed forms we’ll also request several pieces of supporting documentation, such as a written statement from a medical specialist confirming the diagnosis.
Other types of insurance in super
In addition to death cover we also offer the following cover types:
Total and Permanent Disablement (TPD)
Provides a lump sum payment to you if, due to an injury or illness, it’s determined you will be unable to work for the rest of your life.
Income Protection (if available within your employer plan)
Provides you with consistent income for a period of time while you recover from an injury or illness that means you cannot work.
Review your insurance cover today
You can check and update how much cover you have in the insurance section of your online Mercer Super Trust account. For further information on the insurance cover available in your plan, please review your Product Disclosure Statement and associated booklets in the ‘Documents’ section of your online account.
If you are thinking about updating your cover we recommend seeking financial advice prior to making any changes. As part of your membership, our Helpline Advice team can provide financial advice about your super fund at no additional cost. You can make an appointment with this team by calling our Helpline on 1800 682 525 between 8am-7pm (AEST/AEDT), Monday-Friday..
This document has been prepared and sent on behalf of Mercer Superannuation (Australia) Limited (‘Mercer Super’), ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981. Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2022 Mercer LLC. All rights reserved.