Income protection insurance

Income protection insurance can help supplement your income, providing financial stability if you’re unable to work due to illness or injury

Income protection insurance is commonly found within super products, standing by to provide financial stability should you be unable to work due to illness or injury for a significant period of time.

How income protection insurance works

By having income protection insurance on your super account in the event that you’re unable to work due to injury or illness, we may be able to pay you a monthly benefit for up to either a two year period, a five year period, or to age 65, dependent on your level of coverage.

This monthly benefit is typically calculated as 75% of your salary and will continue until you’re able to return to work, or when the benefit period ends – whichever comes first.

These monthly payments can help remove a major source of worry during an emotional and stressful time. By knowing that your income is being supplemented while you’re unable to work, you can spend less time focusing on your finances and more on getting well.

Income protection and Mercer Super

Depending on your employer’s arrangement with us, we generally offer one of two types of income protection insurance:

Total but Temporary Disablement – provides a two-year benefit period with a 30, 60 or 90 day waiting period, as determined by your employer.

Salary Continuance Insurance – provides either a five-year or to age 65 benefit period with a 30, 60 or 90 day waiting period, as determined by your employer.

To confirm if your employer has agreed to offer income protection as part of their plan, and if so, what type of income protection insurance is available, please review your Product Disclosure Statement and associated booklets in the ‘Documents’ section of your online account.

Your cover amount

You may be offered income protection as part of your employer plan. The amount of cover you’ll be provided is typically determined by a formula factoring in information such as your age and salary.

As the coverage amount for income protection is formula based, it will typically fluctuate as you get older and your salary changes, however this means that you are unable to elect for a higher or lower amount at any given point. You do however retain the option to cancel the cover.

Prior to cancelling any insurance cover we recommend seeking financial advice.

Making a claim

In the event of you being unable to work for a period longer than your waiting period (you can check whether your waiting period is 30, 60 or 90 days in the insurance section of your online account. You can also find this information in ‘Your Plan Details’ guide or the ‘Your Plan Fees and Benefits’ booklet, as applicable, located within the ‘Documents’ section of your online account) due to illness or injury 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 your diagnosis. Once we’ve received all of the required forms and documents we’ll work with the insurer on your behalf to get the benefit paid out.

Other types of insurance in super

In addition to income protection we also offer the following cover types:

Death

Provides a lump sum payment to your loved ones if you pass away. If you are diagnosed with a terminal illness you can receive the lump sum payment early. 

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.

Review your insurance cover today

You can check and update how much cover you have, as well as your waiting and benefit periods 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.